McKesson has entered into a settlement of a class action brought on behalf of those of its former and existing employees who participated in the McKesson Profit Sharing Investment Plan as of April 27, 1999 (excluding employees of HBOC & Company who became participants in the McKesson Plan effective April 1, 1999 as to whom a separate and class action settlement has been previously announced) which provides for a payment of $18.5 million by McKesson in exchange for a release of all class ERISA claims.