FARMINGTON, Conn., July 6 /PRNewswire-FirstCall/ -- DrugMax, Inc. (Nasdaq: DMAX), a specialty pharmacy and medical specialty product provider, announced today that it plans to open two new pharmacies in leading medical office buildings during the second half of 2006. The Company is also in discussions with existing physician group partners to launch additional pharmacies this year.

The new pharmacies are geographically located near existing Familymeds pharmacies, consistent with our pharmacy roll-out strategy. The first site will open inside the Warren Medical Building on the campus of the St. Francis Hospital in Tulsa , Oklahoma and will be the ninth pharmacy launched by the Company under the Familymeds brand name in Oklahoma in recent years. This new pharmacy will be an extension of the Familymeds association with other Warren Clinics in Oklahoma, providing services to patients and multi-specialty physician practices including ambulatory surgery units. The second pharmacy will open within the Pond Place Medical Center in Prospect, Connecticut and operate under the Company's well-known Arrow Pharmacy brand name. By joining the Company's more than thirty Arrow Pharmacy locations throughout Connecticut, the Pond Place Medical Center will further extend Familymeds' strong presence in the region.

James Searson, Chief Operating Officer of DrugMax, commented, 'These new pharmacy locations demonstrate our ability to expand operations and sales with key strategic partners. By continuing to open new pharmacies, we further increase our sales potential and leverage the well known Familymeds and Arrow brand names among our patients and physicians. We achieve two key objectives by expanding our pharmacy business. First, it strengthens our position as a leader in the specialty pharmacy industry and second, it allows us to leverage our existing relationships with leading physician groups and enter into new partner relationships. As we move forward, we intend to seek pharmacy expansion opportunities to meet the rapidly growing needs of physicians and patients for cost-effective treatment of chronic and acute diseases and health conditions.'

In addition, the Company is targeting the Greater Albany , New York area and Western Massachusetts to add new pharmacies at or near medical office buildings in the fourth quarter of this year. Familymeds currently services leading medical groups in both these regions with existing pharmacies. The potential new sites will expand the Company's current physician group partnerships and strengthen its existing market leadership in these regions.

About DrugMax, Inc.

DrugMax, Inc. is a specialty pharmacy and medical specialty product provider formed by the merger on November 12, 2004 of DrugMax, Inc. and Familymeds Group, Inc. DrugMax works closely with doctors, patients, managed care providers, medical centers and employers to improve patient outcomes while delivering low cost and effective healthcare solutions. The Company is focused on building an integrated specialty drug platform through its pharmacy and specialty pharmaceutical operations. DrugMax operates 85 locations, including 7 franchised locations, in 14 states under the Familymeds Pharmacy and Arrow Pharmacy & Nutrition Center brand names. The Company also operates Worksite Pharmacy(SM), which provides solutions for major employer groups, as well as specialty pharmaceutical distribution directly to physicians and other healthcare providers. The DrugMax platform is designed to provide services for the treatment of acute and complex health diseases including chronic medical conditions such as cancer, diabetes and pain management. The Company often serves defined population groups on an exclusive, closed panel basis to maintain costs and improve patient outcomes. DrugMax offers a comprehensive selection of brand name and generic pharmaceuticals, non-prescription healthcare-related products, and diagnostic supplies to its patients, physicians, clinics, long-term care and assisted living centers. More information about DrugMax can be found at http://www.drugmax.com. The Company's online product offering can be found at http://www.familymeds.com.

Safe Harbor Provisions

Certain oral statements made by management from time to time and certain statements contained in press releases and periodic reports issued by DrugMax, Inc., including those contained herein, that are not historical facts are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements are statements regarding the intent, belief or current expectations, estimates or projections of DrugMax, its directors or its officers about DrugMax and the industry in which it operates. Although DrugMax believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When used in this report, the words 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are generally intended to identify forward-looking statements. Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, management's ability to successfully implement its business and growth strategies, including its ability to acquire other businesses, open new Worksite locations, and improve sales and profitability. Further information relating to factors that could cause actual results to differ from those anticipated is included under the heading Risk Factors in DrugMax's Form 10-K for the year ended December 31, 2005 , and its Form 10-Q for the quarter ended April 1, 2006 , filed with the U.S. Securities and Exchange Commission. DrugMax disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.

    For more information, contact:

    Cindy Berenson
    DrugMax, Inc.
    860-676-1222 x138
    berenson@familymeds.com

    Or

    Brandi Piacente
    The Piacente Group
    212-481-2050
    brandi@thepiacentegroup.com

SOURCE DrugMax, Inc.