<PAGE> 1
EXHIBIT 99.2
FOR IMMEDIATE RELEASE
CONTACT: MICHAEL CATALANO BRUCE A. TEAL
CHAIRMAN, PRESIDENT AND CEO EXECUTIVE VICE PRESIDENT AND
(615) 376-1319 CHIEF FINANCIAL OFFICER
(615) 376-1361
AMERICA SERVICE GROUP PURCHASES STADTLANDERS CORRECTIONS
DIVISION FROM BERGEN BRUNSWIG CORPORATION
GIVES COMPANY NEW MARKET ADVANTAGES
ACCRETIVE IN 2001
NASHVILLE, Tennessee (September 20, 2000) - America Service Group Inc.
(NASDAQ:ASGR) announced today that it had acquired Stadtlanders Corrections
Division (Stadtlanders) from Bergen Brunswig Corporation (NYSE:BBC).
Stadtlanders is the country's largest correctional pharmacy company. It
generates approximately $80 million in annual revenues, about half of which
represents purchases by America Service Group. The acquisition, which is
expected to be accretive to earnings in 2001, is structured as an asset purchase
and financed under the Company's existing senior credit facility. Consideration
for the transaction was $6.25 million plus purchase of inventory.
Michael Catalano, chairman, president and CEO of America Service Group,
said, "The transaction is a natural expansion of America Service Group's
correctional activities. It presents an opportunity to offer unbundled pharmacy
services and medical supplies and enhances our ability to control pharmacy
costs. In addition, the combination with America Service Group strengthens
Stadtlanders' ability to expand its pharmacy and medical surgical supplies
business to additional customers. We are pleased with the potential of this
transaction to add value for our clients and shareholders."
Stadtlanders will be operated as a subsidiary of America Service Group
under the name Secure Pharmacy Plus, Inc. Dr. Trey Hartman, executive vice
president of Stadtlanders, will become the president and chief executive officer
of Secure Pharmacy Plus, Inc. and executive vice president of America Service
Group.
"We welcome this opportunity to join forces with America Service
Group," Hartman said. "Their financial resources and marketing strength,
combined with our leading market share, will enhance our opportunities to
develop this business to its fullest potential. Clearly, the benefits to America
Service Group include an expanded product offering and a complementary growth
vehicle."
<PAGE> 2
Secure Pharmacy Plus, Inc. is based in Franklin, Tennessee. Its primary
business is selling pharmacy products to correctional institutions, and it ranks
number one in market share in the $600 million correctional pharmacy sector. The
Company is expanding its service offering to include medical surgical supplies
and over-the-counter commissary products.
America Service Group Inc., based in Brentwood, Tennessee, is a leading
provider of correctional healthcare services in the United States. America
Service Group Inc., through its subsidiaries, provides a wide range of managed
healthcare and pharmacy programs for approximately 325,000 inmates. The Company
employs over 5,100 medical, professional and administrative staff nationwide.
This press release may contain "forward-looking" statements made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. As such, they involve risk and uncertainty that actual
results may differ materially from those projected in the forward-looking
statements. A discussion of the important factors and assumptions regarding the
statements and risks involved is contained in the Company's filings with the
Securities and Exchange Commission.
For additional information about the Company,
visit America Service Group's web site: http://www.asgr.com
-END-
