HORIZON Pharmacies, Inc. (HZPIQ.PK)

HORIZON Pharmacies, Inc. owns and operates a chain of retail pharmacies and related businesses located principally in the south central United States. As of December 31, 2000, the Company owned 45 pharmacies and related businesses. In addition to its retail pharmacy business, the Company sells and leases home medical equipment and offers home healthcare services through its wholly owned subsidiary, HORIZON Home Care, Inc. The Company also has an Internet pharmacy operation, HORIZONScripts.com, Inc. through which it operates its mail order and Internet pharmacy operations and its internal technology applications. In July 2001, the Company filed a voluntary petition for Chapter 11 relief in the United States Bankruptcy Court for Northern District of Texas, Dallas Division. Voluntary petitions and requests for joint administration were also filed on behalf of three subsidiaries of the Company, Horizon Home Care, Inc. HorizonScripts.com, Inc. and Jones Low Priced Drugs, Inc.

For the three months ended 3/31/01, revenues fell 5% to $33.3M. Net loss totaled $3.5 million, up from $1.6 million. Revenues reflect a decrease in store operating months as a result of the sale of seven underperforming stores. Higher loss also reflects lower margin on prescription drug sales.