PSS World Medical, Inc. (NASDAQ GS:PSSI) announced today that it has made a $22.5 million equity investment, approximately 5% of current outstanding shares, in athenahealth, Inc., a leading provider of internet-based healthcare information technology and business services to physician practices. The Company purchased shares of the Watertown, Massachusetts-based athenahealth, Inc. from existing shareholders. Additionally, the Company's Physician Business, Physician Sales & Service, has entered into a two-year exclusive distribution agreement with athenahealth, Inc. to market its web-based practice management, billing and electronic medical record (EMR) solutions to the U.S. physician market. athenahealth will also provide enhanced product and customer support services to the Company's physician customers. Future product developments are expected to integrate customer ordering and inventory management functionality into athenahealth's existing service offering.

David A. Smith, Chairman and CEO of PSS World Medical, Inc., commented, ?PSS and athenahealth have joined to deliver an innovative and low-cost revenue cycle solution to alleviate the complexity of insurance companies' reimbursement to physicians. Additionally, athenahealth's new EMR system goes beyond automation to also eliminate all paperwork generated from vendors outside of the physician office.?

David M. Bronson, Executive Vice President and Chief Financial Officer of PSS World Medical, Inc., commented, ?The investment we are making in athenahealth will more closely align the objective of the two companies in serving the physician market, and will also allow our shareholders to more fully participate in the success we anticipate in working together with athenahealth.?

athenahealth, Inc. is a leading provider of internet-based business services for physician practices. The Company's service offerings are based on proprietary web-native practice electronic medical record (EMR) software, a continuously updated payer knowledge-base and integrated back-office service operations. For more information visit, www athenahealth.com.

PSS World Medical, Inc. is a national distributor of medical products to physicians and elder care providers through its two business units. Since its inception in 1983, PSS has become a leader in the two market segments that it serves with a focused market approach to customer services, a consultative sales force, strategic acquisitions, strong arrangements with product manufacturers and a unique culture of performance.

All statements in this release that are not historical facts, including, but not limited to, statements regarding anticipated growth in revenue, gross and operating margins, and earnings, statements regarding the Company's current business strategy, the Company's ability to complete and integrate acquired businesses and generate acceptable rates of return, the Company's projected sources and uses of cash, and the Company's plans for future development and operations, are based upon current expectations. Specifically, forward-looking statements in this Press Release include, without limitation, the Company's expected results in GAAP EPS, revenue, operating incomes and operating margins for continuing operations for both the consolidated company and for each of its businesses in fiscal year 2008 and in future periods; the expected operational cash flow in fiscal year 2008 and in future periods ; the ability to sustain revenue growth and expected growth rates of the marketing programs in its Physician and Elder Care Businesses; the Company's decision to not participate in the sale of influenza vaccine in fiscal year 2008; expected pharmaceutical product sales in Florida and all other of the 50 U.S. states in fiscal year 2008 and in future periods; expected sales growth from revenues derived from home care, hospice and assisted living customer, expected efficiency, customer acceptance and profitability derived from the Company's global product sourcing strategy, expected revenue, income and profitability derived from the Company's strategy to invest and participate in the marketing and sales of healthcare information technology products and services (HCIT), the expectation for acquired assets to meet performance, integration, revenue and profitability assumptions and targets, as well as other expectations of growth and financial and operational performance. These statements are forward ?looking in nature and involve a number of risks and uncertainties. Actual results may differ materially. Among the factors that could cause results to differ materially are the following: pricing and customer credit quality pressures; the loss of any of our distributorship agreements and our reliance on relationships with our suppliers and vendors; our reliance on a limited number of chain business elder care customers; the availability of sufficient capital to finance the Company's business plans on terms satisfactory to the Company; lower revenue and earnings that may result from competition; the ability of the Company to adequately defend or reach a settlement on outstanding litigation matters and investigations involving the Company or its management; changes in labor, equipment and capital costs; changes in legislation and regulations affecting the Company's business, such as the Medicare cliffs, changes in malpractice insurance rates and tort reform; future acquisitions or strategic partnerships; general business, competitive and economic factors and conditions; and other factors described from time to time in the Company's reports filed with the Securities and Exchange Commission. Many of these factors are outside the control of the Company. The Company wishes to caution readers not to place undue reliance on any such forward ?looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date made. The Company also wishes to caution readers that it undertakes no duty or is under no obligation to update or revise any forward-looking statements.

(NASDAQ GS:PSSI) - G

PSS World Medical, Inc.
Robert C. Weiner, Vice President, Investor Relations
904-332-3287