Summary Notice of Proposed Settlement of Class Action In Re McKesson HBOC, Inc. Securities Litigation

SAN JOSE, Calif., Feb. 21 /PRNewswire-FirstCall/ -- The following release was issued today by the law firms BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP and BARRACK, RODOS & BACINE:

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION In re McKESSON HBOC, INC. SECURITIES LITIGATION Master File No. 99-CV-20743 RMW (PVT) And Related Cases CLASS ACTION This Document Relates To: ALL ACTIONS. SUMMARY NOTICE FOR PUBLICATION TO: ALL PERSONS AND ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED PUBLICLY TRADED SECURITIES OF HBO & COMPANY ("HBOC") DURING THE PERIOD FROM JANUARY 20, 1997 THROUGH AND INCLUDING JANUARY 12, 1999, AND ALL PERSONS OR ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED CALL OPTIONS OR SOLD PUT OPTIONS OF HBOC DURING THE PERIOD FROM JANUARY 20, 1997 THROUGH AND INCLUDING APRIL 27, 1999; ALL PERSONS AND ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED PUBLICLY TRADED SECURITIES OR CALL OPTIONS, OR WHO SOLD PUT OPTIONS, OF MCKESSON OR OF MCKESSON HBOC, INC. DURING THE PERIOD FROM OCTOBER 18, 1998 THROUGH AND INCLUDING APRIL 27, 1999; AND ALL PERSONS AND ENTITIES WHO HELD MCKESSON COMMON STOCK ON NOVEMBER 27, 1998 AND STILL HELD THOSE SHARES ON JANUARY 12, 1999 AND WHO WERE INJURED THEREBY.

This Summary Notice is given pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order by the United States District Court for the Northern District of California (the "Court"), dated January 26, 2007.

1. This Summary Notice contains defined terms (which are indicated by initial capital letters), and the definitions of those terms can be found in the Notice of Proposed Settlement of Class Action with Arthur Andersen LLP (the "Notice").

2. The purpose of this Summary Notice is to inform you of a proposed Settlement and that a hearing will be held on April 13, 2007 at 9:00 a.m., before the Honorable Ronald M. Whyte in the United States Courthouse, Courtroom 6, 4th Floor, 280 South First Street, San Jose, California 95113; for the purpose of determining: (1) whether the proposed Settlement of the claims in the Litigation against Arthur Andersen LLP ("AALLP") for the sum of $72.5 million in cash, plus interest, plus certain contingent amounts, should be approved as fair, reasonable and adequate to the Settlement Class, and whether an order should be entered dismissing on the merits and with prejudice the claims that are, or ever have been, asserted in the Litigation by Lead Plaintiff and the Settlement Class against AALLP in the Litigation; (2) whether the Plan of Allocation, previously approved by the Court on February 26, 2006 in connection with the previous settlement in this Litigation, is fair and equitable and therefore should be approved in connection with this Settlement; and (3) whether the application of Lead Counsel for the payment of attorneys' fees, reimbursement of expenses and interest thereon should be approved.

The proposed Settlement Amount is in addition to the $960 million settlement with defendants McKesson HBOC, Inc. and HBO & Company (the "McKesson Settlement") previously approved by the Court

3. The proposed Settlement resolves all claims, rights, causes of action, suits, matters and issues, whether known or unknown, whether asserted or unasserted, arising out of or related to the subject matters of the Litigation or claims that are or ever have been asserted by or on behalf of Lead Plaintiff or any Settlement Class Member, whether individual or class-wide, against AALLP and Andersen's Released Persons. If approved, the Settlement will resolve all of the claims that Settlement Class Members brought against AALLP or Andersen's Released Persons or could have brought in this Litigation completely. Details of the Settlement and the allocation of the Settlement Fund to Settlement Class Members can be found in the Notice. If you have not already received a copy of the Notice or a copy of the Proof of Claim form, you may obtain such information and download forms through the Internet websites of Lead Counsel: http://www.blbglaw.com/settlements/mckesson_securities.html and http://www.barrack.com/, or the Claims Administrator: http://www.mckessonhbocsettlement.com/; or by contacting Lead Counsel:

BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP David Stickney Timothy A. DeLange 12481 High Bluff Drive, Suite 300 San Diego, CA 92130 Tel: (858) 793-0070 Fax: (858) 793-0323 BARRACK, RODOS & BACINE Leonard Barrack M. Richard Komins 3300 Two Commerce Square 2001 Market Street Philadelphia, PA 19103 Tel: (215) 963-0600 Fax: (215) 963-0838 or the Claims Administrator: In re McKesson HBOC Sec. Litig. c/o Analytics Incorporated, Claims Administrator P.O. Box 2005 Chanhassen, MN 55317-2005

4. If you: (i) purchased or otherwise acquired publicly traded securities of HBOC during the period from January 20, 1997 through and including January 12, 1999; (ii) purchased or otherwise acquired call options or sold put options of HBOC during the period from January 20, 1997 through and including April 27, 1999; (iii) purchased or otherwise acquired publicly traded securities or call options, or who sold put options, of McKesson Corporation or of McKesson HBOC, Inc. during the period from October 18, 1998 through and including April 27, 1999; or (iv) held McKesson common stock on November 27, 1998 and still held those shares on January 12, 1999, and were injured thereby, you may be a member of the Settlement Class. Excluded from the Settlement Class are: (i) defendants; (ii) members of the immediate family of each individual defendant; (iii) any entity in which any defendant has a controlling interest; (iv) any person who was an officer or a director of HBOC or McKesson (or their subsidiaries or affiliates) during the Settlement Class Period; (v) any person who was an officer, director, employee or affiliate of Bear Stearns during the Settlement Class Period; (vi) any person who was a partner in Arthur Andersen during the Settlement Class Period; and (vii) the legal representatives, heirs, successors or assigns of any such excluded party. "Officer of HBOC or McKesson," means any person employed by HBOC or McKesson who held a position at or above the level of assistant vice president. Your rights against the Defendant's Released Persons (as defined in the Notice) will be affected by the Settlement. Further, if you wish to share in the distribution of the proceeds of the Settlement, you must either: (a) have filed a valid proof of claim in connection with the previous settlement in this Litigation; or (b) timely file a valid claim, on a Proof of Claim form, no later than May 10, 2007, establishing that you are entitled to recovery.

5. If you desire to be excluded from the Settlement Class, you must file a request for exclusion by March 27, 2007 in the manner and form explained in the detailed Notice referred to above even if you previously requested to be excluded from the McKesson Settlement. If you request to be excluded from this Settlement, you will not be bound by the Judgment and will not share in the recovery.

6. PLEASE NOTE: IF YOU HAVE NOT PREVIOUSLY FILED A VALID PROOF OF CLAIM IN THIS LITIGATION AND FAIL TO FILE A PROPER PROOF OF CLAIM FORM, AND YOU FAIL TO FILE A TIMELY REQUEST FOR EXCLUSION FROM THE SETTLEMENT CLASS BY THE DEADLINE SET FORTH ABOVE, YOU WILL NOT SHARE IN THE SETTLEMENT, BUT YOU WILL BE BOUND BY THE FINAL JUDGMENT OF THE COURT AND YOU WILL BE ENJOINED FROM ASSERTING THE RELEASED CLAIMS AGAINST THE DEFENDANT'S RELEASED PERSONS.

7. PLEASE DO NOT CONTACT THE COURT OR THE CLERK'S OFFICE REGARDING THIS NOTICE.

BY ORDER OF THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA