Owens & Minor Reports Record Quarterly Revenue of $1.79 Billion for 2nd Quarter 2008

"Record quarterly revenue and solid growth in earnings in the second quarter demonstrate that we are on the right track for 2008," said Craig R. Smith, president & chief executive officer of Owens & Minor. "In fact, over the last five quarters, we have reported strong results in revenue, gross margin dollars and earnings. We have executed operationally and managed our long-term debt, as we said we would. We are making progress in growing our relationships with new and acquired business, and we continue to provide more value to our customers and suppliers, consistent with our strategies. As we look to the rest of the year and beyond, we are operating from a position of strength."

Year-to-Date Results

For the six months ended June 30, 2008, revenue was $3.55 billion, improved 5.4% from $3.37 billion in the same period last year. Net income for the first half of 2008 was $47.8 million, up 65% from net income of $29.1 million in the first half of last year. Year-to-date, diluted EPS was $1.16, compared to $0.71 in the first six months of 2007. For comparative purposes, earnings for the first six months of 2007 reflect the impact of the transition and integration of an acquired business to Owens & Minor.

Asset Management

For the first six months of the year, operating cash flow was $79 million, a slight decrease when compared to the prior year's $86 million. The company used cash for payments on its revolving credit facility. Consequently, long-term debt decreased to $221 million as of June 30, 2008. Days sales outstanding (DSO) of 24.0 days and inventory turns of 10.4 were improved from the prior year second quarter.

2008 Outlook

The company continues to target 2008 annual revenue growth in the 5% to 7% range. The company is now targeting earnings per diluted share for the year in a range of $2.30 to $2.40, increased from the previous range of $2.20 to $2.30.

Safe Harbor Statement

Except for historical information, the matters discussed in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. These risk factors are discussed in reports filed by the company with the Securities & Exchange Commission. All of this information is available at www.owens-minor.com. The company assumes no obligation, and expressly disclaims any such obligation, to update or alter information, whether as a result of new information, future events, or otherwise.

Owens & Minor, Inc., (NYSE: OMI | Quote | Chart | News | PowerRating) a FORTUNE 500 company headquartered in Richmond, Virginia, is the leading distributor of national name-brand medical and surgical supplies and a healthcare supply-chain management company. Owens & Minor is also a member of the Russell 2000(R) Index, which measures the performance of the small-cap segment of the U.S. equity universe, as well as the S&P SmallCap 600, which includes companies with a market capitalization of $300 million to $2 billion that meet certain financial standards. With a diverse product and service offering and distribution centers throughout the United States, the company serves hospitals, integrated healthcare systems, alternate care locations, group purchasing organizations, the federal government and consumers. Owens & Minor provides technology and consulting programs that improve inventory management and streamline logistics across the entire medical supply chain--from origin of product to patient bedside. For news releases, or for more information about Owens & Minor, visit the company Web site at www.owens-minor.com.

Investors Conference Call & Supplemental Material

Conference Call: Owens & Minor management will conduct a conference call for professional analysts and investors on Tuesday, July 29, 2008, at 9:00 a.m. Eastern Daylight Time. Participants may access the live call at 877-748-0043 with conference code #55983971. The international dial-in number is 706-758-5871 with conference code #55983971. Webcast: The event will also be webcast on www.owens-minor.com under "Investor Relations." Replay: A replay of the call will be available for seven days by dialing 800-642-1687, using conference code #55983971.

Page 3 ---------------------------------------------------------------------- Owens & Minor, Inc. Condensed Consolidated Statements of Income (unaudited) (in thousands, except ratios and per share data) Three Months Ended June 30, --------------------------- 2008 2007 --------------------------- Revenue $ 1,794,915 $1,679,044 Cost of revenue 1,604,728 1,502,181 ---------------- ---------- Gross margin 190,187 176,863 Selling, general and administrative expenses 141,546 133,456 Depreciation and amortization 7,791 8,088 Other operating income and expense, net (948) (1,388) ---------------- ---------- Operating earnings 41,798 36,707 Interest expense, net 2,826 6,613 ---------------- ---------- Income before income taxes 38,972 30,094 Income tax provision 15,340 11,828 ---------------- ---------- Net income $ 23,632 $ 18,266 ================ ========== Net income per common share - basic $ 0.58 $ 0.45 Net income per common share - diluted $ 0.57 $ 0.45 Weighted average shares - basic 40,754 40,213 Weighted average shares - diluted 41,449 40,763 Six Months Ended June 30, --------------------------- 2008 2007 --------------------------- Revenue $ 3,547,632 $3,365,243 Cost of revenue 3,170,353 3,013,719 ---------------- ---------- Gross margin 377,279 351,524 Selling, general and administrative expenses 278,654 276,238 Depreciation and amortization 15,596 16,266 Other operating income and expense, net (1,968) (2,470) ---------------- ---------- Operating earnings 84,997 61,490 Interest expense, net 6,339 13,784 ---------------- ---------- Income before income taxes 78,658 47,706 Income tax provision 30,817 18,625 ---------------- ---------- Net income $ 47,841 $ 29,081 ================ ========== Net income per common share - basic $ 1.18 $ 0.73 Net income per common share - diluted $ 1.16 $ 0.71 Weighted average shares - basic 40,677 40,111 Weighted average shares - diluted 41,363 40,710

Page 4 ---------------------------------------------------------------------- Owens & Minor, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) ---------------------------------------------------------------------- June 30, Dec. 31, 2008 2007 ---------------------------------------------------------------------- Assets Current assets Cash and cash equivalents $ 4,932 $ 2,129 Accounts and notes receivable, net 474,248 462,392 Merchandise inventories 632,877 581,569 Other current assets 54,416 43,767 ---------------------------------------------------------------------- Total current assets 1,166,473 1,089,857 Property and equipment, net 72,875 76,122 Goodwill, net 271,699 271,699 Intangible assets, net 27,625 32,517 Other assets, net 47,509 44,885 ---------------------------------------------------------------------- Total assets $1,586,181 $1,515,080 ---------------------------------------------------------------------- Liabilities and shareholders' equity Current liabilities Accounts payable $ 555,791 $ 469,102 Accrued payroll and related liabilities 21,668 18,763 Other accrued liabilities 78,289 80,599 ---------------------------------------------------------------------- Total current liabilities 655,748 568,464 Long-term debt, excluding current portion 221,081 283,845 Other liabilities 50,037 48,412 ---------------------------------------------------------------------- Total liabilities 926,866 900,721 ---------------------------------------------------------------------- Shareholders' equity Common stock 82,745 81,748 Paid-in capital 174,533 161,978 Retained earnings 409,293 377,913 Accumulated other comprehensive loss (7,256) (7,280) ---------------------------------------------------------------------- Total shareholders' equity 659,315 614,359 ---------------------------------------------------------------------- Total liabilities and shareholders' equity $1,586,181 $1,515,080 ----------------------------------------------------------------------

Page 5 ---------------------------------------------------------------------- Owens & Minor, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) Six Months Ended June 30, ---------------------------------------------------------------------- 2008 2007 ---------------------------------------------------------------------- Operating activities Net income $ 47,841 $ 29,081 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 15,596 16,266 Provision for losses on accounts and notes receivable 10,827 10,503 Provision for LIFO reserve 10,468 5,900 Amortization of direct-response advertising costs 3,409 3,501 Deferred direct-response advertising costs (4,769) (4,391) Share-based compensation expense 4,879 3,804 Changes in operating assets and liabilities: Accounts and notes receivable (22,683) 13,179 Merchandise inventories (61,776) 26,591 Accounts payable 82,989 1,838 Net change in other current assets and current liabilities (9,313) (19,110) Other, net 1,495 (776) ---------------------------------------------------------------------- Cash provided by operating activities 78,963 86,386 ---------------------------------------------------------------------- Investing activities Additions to property and equipment (3,765) (8,207) Additions to computer software (5,895) (4,842) Acquisition of intangible assets - (58) Net cash paid for acquisitions of businesses - (2,410) Other, net 8 375 ---------------------------------------------------------------------- Cash used for investing activities (9,652) (15,142) ---------------------------------------------------------------------- Financing activities Cash dividends paid (16,461) (13,766) Net payments on revolving credit facility (62,200) (59,800) Proceeds from exercise of stock options 7,226 4,668 Excess tax benefits related to stock-based compensation 2,454 2,076 Increase (decrease) in drafts payable 3,700 (4,000) Other, net (1,227) (1,104) ---------------------------------------------------------------------- Cash used for financing activities (66,508) (71,926) ---------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 2,803 (682) Cash and cash equivalents at beginning of period 2,129 5,090 ---------------------------------------------------------------------- Cash and cash equivalents at end of period $ 4,932 $ 4,408 ----------------------------------------------------------------------

Page 6 ---------------------------------------------------------------------- Owens & Minor, Inc. Financial Statistics (unaudited) Quarter Ended ---------------------------------------------------------------------- (in thousands, except ratios and per share data) 6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007 ---------------------------------------------------------------------- Operating results: Revenue $1,794,915 $1,752,717 $1,748,479 $1,686,744 $1,679,044 ---------------------------------------------------------------------- Gross margin $ 190,187 $ 187,092 $ 185,203 $ 178,257 $ 176,863 Gross margin as a percent of revenue 10.60% 10.67% 10.59% 10.57% 10.53% ---------------------------------------------------------------------- SG&A expense $ 141,546 $ 137,108 $ 137,668 $ 131,365 $ 133,456 SG&A expense as a percent of revenue 7.89% 7.82% 7.87% 7.79% 7.95% ---------------------------------------------------------------------- Operating earnings $ 41,798 $ 43,199 $ 40,781 $ 40,942 $ 36,707 Operating earnings as a percent of revenue 2.33% 2.46% 2.33% 2.43% 2.19% ---------------------------------------------------------------------- Net income $ 23,632 $ 24,208 $ 22,453 $ 21,176 $ 18,266 ---------------------------------------------------------------------- Net income per common share - basic $ 0.58 $ 0.60 $ 0.56 $ 0.53 $ 0.45 ---------------------------------------------------------------------- Net income per common share - diluted $ 0.57 $ 0.59 $ 0.55 $ 0.52 $ 0.45 ---------------------------------------------------------------------- Accounts receivable: Accounts and notes receivable, net $ 474,248 $ 457,345 $ 462,392 $ 508,746 $ 515,496 ---------------------------------------------------------------------- Days sales outstanding (1) 24.0 23.7 24.3 27.7 27.9 ---------------------------------------------------------------------- Inventory: Merchandise inventories $ 632,877 $ 607,881 $ 581,569 $ 581,363 $ 635,297 ---------------------------------------------------------------------- Average inventory turnover 10.4 10.6 10.6 9.8 9.4 ---------------------------------------------------------------------- Financing: Long-term debt, excluding current portion $ 221,081 $ 211,962 $ 283,845 $ 231,142 $ 369,031 ---------------------------------------------------------------------- Stock information: Cash dividends per common share $ 0.20 $ 0.20 $ 0.17 $ 0.17 $ 0.17 ---------------------------------------------------------------------- Stock price at quarter-end $ 45.69 $ 39.34 $ 42.43 $ 38.09 $ 34.94 ---------------------------------------------------------------------- (1) Days sales outstanding based on three-months' sales

SOURCE: Owens & Minor, Inc.

Owens & Minor, Inc. Trudi Allcott, 804-723-7555 Director, Investor & Media Relations or Chuck Graves, 804-723-7556 Director, Finance & Investor Relations