PSS World Medical

Investor Day

Conference

June 1, 2006

Atlanta Georgia

Exhibit 99.1

Robert Weiner

Vice President, Investor Relations

Investor Day

Conference

June 1, 2006

Atlanta Georgia

* * * * *

******************************************************************************************* *****

****************************************************************************************** ******

Forward-Looking Statements

All

statements

in

this

presentation

that

are

not

historical

facts,

including,

but

not

limited

to,

statements

regarding

anticipated

growth

in

revenue,

gross

and

operating

margins,

cash

flow

from

operations

and

earnings,

statements

regarding

the

Company’s

current

business

strategy,

the

Company’s

ability

to

complete

and

integrate

acquired

businesses

and

generate

acceptable

rates

of

return,

the

Company’s

projected

sources

and

uses

of

cash,

and

the

Company’s

plans

for

future

development

and

operations,

are

based

upon

current

expectations.

Specifically,

forward-looking

statements

in

this

presentation

include,

without

limitation,

the

Company’s

expected

results

in

GAAP

EPS,

revenue,

operating

income

and

operating

margins

for

continuing

operations

and

discontinued

operations

for

both

the

consolidated

company

and

for

each

of

its

businesses

in

fiscal

years

2007

-

2009;

the

expected

operational

cash

flow

in

fiscal

years

2007

-

2009;

the

ability

to

sustain

revenue

growth

and

expected

growth

rates

of

the

marketing

programs

in

its

Physician

and

Elder

Care

Businesses;

expected

flu

vaccine

sales

during

fiscal

year

2007

and

subsequent

fiscal

years;

expected

sales

growth

from

durable

medical

equipment,

housekeeping,

revenues

derived

from

home

care,

hospice

and

assisted

living

customers,

expectations

for

revenue,

operating

income,

operating

margin,

cash

flow

from

operations

and

earnings

per

share

for

fiscal

years

2007

-

2009,

as

well

as

other

expectations

of

growth

and

financial

and

operational

performance.

These

statements

are

forward

-looking

in

nature

and

involve

a

number

of

risks

and

uncertainties.

Actual

results

may

differ

materially.

Among

the

factors

that

could

cause

results

to

differ

materially

are

the

following:

pricing

and

customer

credit

quality

pressures;

the

loss

of

any

of

our

distributorship

agreements

and

our

reliance

on

relationships

with

our

vendors;

our

reliance

on

a

limited

number

of

elder

care

customers;

the

availability

of

sufficient

capital

to

finance

the

Company’s

business

plans

on

terms

satisfactory

to

the

Company;

competitive

factors;

the

ability

of

the

Company

to

adequately

defend

or

reach

a

settlement

of

outstanding

litigations

and

investigations

involving

the

Company

or

its

management;

changes

in

labor,

equipment

and

capital

costs;

changes

in

regulations

affecting

the

Company’s

business,

such

as

the

Medicare

reimbursements

and

cliffs,

changes

in

malpractice

insurance

rates

and

tort

reform;

future

acquisitions

or

strategic

partnerships;

general

business

and

economic

conditions;

and

other

factors

described

from

time

to

time

in

the

Company’s

reports

filed

with

the

Securities

and

Exchange

Commission.

Many

of

these

factors

are

outside

the

control

of

the

Company. 

The

Company

wishes

to

caution

readers

not

to

place

undue

reliance

on

any

such

forward

-looking

statements,

which

statements

are

made

pursuant

to

the

Private

Securities

Litigation

Reform

Act

of

1995

and,

as

such,

speak

only

as

of

the

date

made.

The

Company

also

wishes

to

caution

readers

that

it

undertakes

no

duty

or

is

under

no

obligation

to

update

or

revise

any

forward-looking

statements.

Investor Day 2006

Building a unique culture of:

•

Sustainable above market growth

•

Customer & market focus

•

Execution & operational excellence

Meeting Agenda

•

David Smith

President & CEO

•

Gary Corless

COO

•

David Bronson

EVP & CFO

•

John Sasen

CMO

&

Kevin English

SVP, Shared Services

•

PSSI: We Are Unique

•

Our Environment

•

Growth

•

What Keeps the CEO Up at Night

•

What is the CEO Focused On

•

Vision for Our Future

•

Physician Business: FY 2007 Plan

•

Elder Care Business: FY 2007 Plan

•

Financial Performance Review

•

Financial Goals

•

Evaluation of Our Brand,

Select Medical Products

David A. Smith

President and

Chief Executive Officer

Investor Day

Conference

June 1, 2006

Atlanta Georgia

Investor Day 2006

Building a unique culture of:

•

Sustainable above market growth

•

Customer & market focus

•

Execution & operational excellence

PSSI: Investors Benefit from our

Strategies and Execution

-20

20

60

100

140

180

220

260

300

340

380

10/10/00

12/31/01

12/31/02

12/31/03

12/31/04

12/31/05

5/22/06

Prices as of May 22, 2006

PSSI

HSIC

PDCO

MCK

CAH

PSSI : We Are Unique

•

Performance-driven culture

–

Balance of customer satisfaction and profitability

–

Ethics

–

doing

more

than

legal

–

doing

what

is

right

–

Customer,

vendor

and

employee

surveys

help

to

guide

programs

•

Stick to the Strengths of Our Business Model

–

Unique and unparalleled customer service model

–

Delivery advantage, customer relationship advantage

–

Innovative programs and technologies

•

Focus on execution

–

Alignment of customer, shareholder, employee and vendors’

interests

with

our

3

–

year

strategic

plan

–

Focus on core competencies and competitive advantages

–

Limited by time, talent and money

5

10

15

20

25

30

35

PSSI: Employer of Choice

30%

26%

17%

16%

17%

15%

8/1/00

3/31/01

3/29/02

3/28/03

4/2/04

4/1/05

12%

4/1/06

% of Employee Turnover

Focused on Leveraging the

Strengths of Our Business Model

1000

1200

1400

1600

1800

FY 03

FY 04

FY 05

FY 06

$1,178

$1,350

$1,474

$1,619

($ in millions)

Focused on Execution of

our Strategic Plan

0

0.15

0.3

0.45

0.6

0.75

FY 03

FY 04

FY 05

FY 06

$0.12

$0.42

$0.51

$0.66

Earning Per Diluted Share

from continued operations

1

1 Excludes non-recurring tax benefit of $5.6 million,

or $0.09 per diluted share

Environment

Non-durable Medical Product

Home Health Care

Nursing Home Care

Physicians’

Care

Admin.

and Net Cost of

Private Health Insurance

Prescription Drugs

Hospital Care

Source: CMS

1975

Health Expenditures

As

% of GDP

13.8%

1995

Health Expenditures

As

% of GDP

14.4%

2005

Health Expenditures

As

% of GDP

15.5%

2015

Health Expenditures

As

% of GDP

19.3%

National Health Expenditures by type ($bn, chained 2000 dollars)

Accelerating to 3x the rate of growth

In the next 10 years (2005-2015)

compared to previous 10 years (1995-2005

24.5% expected total growth

2005-2015

7.6% actual total growth

1995-2005

US Healthcare Spending is Accelerating

Expected to Approach 20% of GDP

What Do the Experts Say?

U.S. Healthcare:

•

Growth

in

[health

care]

spending

over

the

coming

decade

is

projected

to

average

7.2%

a

year.”

–Wall

Street Journal, February 2006

Physicians:

•

The

AMA

has

forecasted

physician

market

growth

to

accelerate

to

4%

-

6%

in

2006.

•

“[The

American

College

of

Physicians]

has

proposed

a

[federally-based]

solution…

put

primary

care

doctors in charge of organizing a patient's care and giving patients more responsibility for monitoring

their own health and scheduling regular visits.”

–

Reuters News Service, January 2006

•

“According

to

the

American

Society

for

Aesthetic

Plastic

Surgery

(ASAPS)…

the

largest

increase

occurred

in

non-surgical

procedures,

which

grew

51

percent

over

the

previous

year.”

-

Dermatology

Times, May 2005

Home Care and Hospice:

•

“Home Health Agencies and Hospice organizations will see exponential growth over the next two

decades”,

CMS

–

January

2006 

•

Lewin Associates “estimates that for every $1.00 spent on hospice care, approximately $1.50 of

spend is avoided in other medical care categories.”

Diagnostic products:

•

“VC’s

increase

funding

for

medical-device

firms

by

25%

to

2.11

Billion

in

2005.”

–

Wall

Street

Journal,

March 2006

PSSI:

Profitable & Sustainable

Above Market Growth

Where are We Focused: FY 2007

•

Continued execution of customer-solutions-

focused programs

•

Offensive launch of surgery center programs

•

Increased sales rep productivity

Physician Business: Consistent Performance

Where Are We Focused:

FY 2007 -

FY 2009

•

We are targeting $3 Billion    

owned exclusively by practicing

physicians

–

1,470 Targeted ASC locations;

4,900 total market

–

11,500,000 Cosmetic &

Non-Surgical Procedures

–

Medicare payments to

ASC’s up 19% in 2005

Physician

83%

Non

Physician

17%

Physician Market: New PSS Opportunity

Total Ambulatory Surgery Center Markets: $10.0 Billion

Where We Are Focused: FY 2007

•

Re-align resources & strategies to distinct

market segments

•

Leverage service & delivery model: matched

to customers needs

•

Focus on Select Medical products conversion;

and growth of our brand

Elder Care Business: Re-Aligning Focus & Resources

Why Realignment

•

Shed $110 million of business that did not fit

the model

•

$10 Billion Home Care & Hospice markets

have the fastest growth

–

A better fit to our service model

–

Less competition

–

More profit contribution

Elder Care Business

What Keeps Me Up At Night:

David Smith, CEO

•

Sales Rep productivity

•

IT systems

•

Reimbursement and U.S. healthcare system

What Are We Doing About It?

$1.0

$1.5

$2.0

$2.5

FY 02

FY 03

FY 04

FY 05

FY 06

FY 07

FY 08

($ in Millions)

•Sales Rep Productivity

•Training &

Development

•Solution selling

•Automation

•New Sales

representatives

What Are We Doing About It?

•

IT systems

–

Focus on payoff

–

Moment of truth impact

•

Reimbursement and U.S. healthcare system

–

Financial credit parameters

–

Focus on gate keeper and patient

–

Physician market and home care

What Am I Focused On:

David Smith, CEO

•

Global Sourcing

•

People

•

IT systems

•

Corporate Governance

$340

Million

$340

Million

+15%*

BRAND

IMPORT

DIRECT

+30%*

of purchases,

based on today’s volume

PSS World Medical opportunity

*% of procurement savings

Where We Are Focused: FY 2007-FY 2009

Shared Services: Global Product Sourcing

Where We Are Focused: FY 2007-FY 2009

Shared Services: Global Product Sourcing

VP Global Sourcing

Tomas  D’Innocenzi

Admin

VP Sourcing Ops JAX

Director QA/QC

China Sourcing Mgrs: 2

Tiger Specialty

Sourcing: 22

LOOP Solution Ltd.

(Hong Kong)

Quality Control

Production Control

QA/QC Analyst

Sourcing: 3

Logistics: 3

Bus. Analyst

SELECT

Support: 2

MD Asia (SE Asia):4

Quality Control

Production Control

40+ Sourcing Team

5 Marketing Team

Where We Are Focused: FY 2006 -

FY 2008

Shared Services: Global Sourcing

8%

Branded

92%

12%

Branded

88%

Select Medical Product Mix

FY 2006

$1.5 Million

FY 2008

$10 -

$11 Million

Pre-Tax

Savings:

FY 2007

$3.5 –

4.0 Million

10%

Branded

90%

PSSI: CEO’s Vision

•

Revenue growth 2X the market, with earnings growing       

faster than revenue

•

Focused on customers that fit service model

•

Continued expansion and leadership in Physician market

•

Meaningful presence in home care and hospice markets

•

Global sourcing core competency (brand power)

•

Industry-leading shareholder returns

Thank You

Gary A. Corless

Chief Operating Officer

Investor Day

Conference

June 1, 2006

Atlanta Georgia

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Investor Day 2006

Building a unique culture of:

•

Positioning for growth

•

Customer & market focus

•

Execution & operational excellence

The Physician Business

The Physician Business:

Market Drivers

•

Office Based Physicians

in PSS Market: 528,984

•

Total Product Segmentation: $10.4 Billion

$5.1B

$3.6B

Medical

&

Surgical

Pharmaceuticals

Injectibles

&

Vaccines

Diagnostic

Equipment

Non-diagnostic

Equipment

$ 5.1B

The Physician Business:

Competitive Landscape

The Physician Business:

Unique Value Proposition

We offer office -

based physicians a clear choice

•

Customer solutions-focused programs

•

Industry-leading reliable and efficient delivery services

•

Personalized sales, services and support

•

Industry-leading comprehensive diagnostic equipment offering

•

Biomed

services

The Physician Business:

FY 2007 Plan

Sales

•

Focus on Select Medical products conversion and

growth

•

Surgery center market roll-out

•

Rx focus and roll-out of controlled Rx to

PSS  field

•

Continued leverage of industry-leading diagnostic

equipment offering

The Physician Business:

FY 2007 Plan

Operations

•

Strengthen delivery advantage

•

Continuous improvement of customer

touch points

•

Continued focus on driving metrics and

performance improvement programs

The Physician Business:

FY 2007 Plan

Marketing

•

Market blitzes

•

Customized surgery center solutions-

based programs

•

Smartscan

growth

Smartscan: Progress Report

Smartscan:

•

Over 1,200 customers have Smartscan

•

$919 average order size placed on Smartscan

–

Compared to:

•

$738 average order placed on MyPSS.com

•

$516 average order placed with Customer Service

•

$427 average order placed on ICON (Sales rep ordering technology)  

Smartscan: Progress Report

0

100

200

300

400

500

600

700

800

900

1000

1100

1200

1300

1400

1500

Oct-05

Nov-05

Dec-05

Jan-06

Feb-06

Mar-06

Net sales

($ In thousands)

Number of orders

$1,370

1,516

The Physician Business:

FY 2007 Financial Goals

•

Revenue growth goal of 11% -

14%

•

Operating margin goal of 7.0%

The Elder Care Business

The Elder Care Business:

Targeted Approach

HME

HSP

HHA

Skilled

Nursing

Home Care

SNF

16,000 Customers

12,000 Customers

2,500 Customers

110,000 Customers

Large

Medium

Small

15%

61%

17%

69%

79%

8%

Target 76%

or $3.0 Billion

Target 86%

or $6.9 Billion

Target 87%

or $1.1 Billion

The Elder Care Business:

Targeted Value Proposition

We offer elder care providers a clear choice:

•

Service and delivery model matches customer

needs

•

Our programs are matched to needs of Home

Health and Hospice agencies

•

Select Medical Products offer compelling value

•

Technology systems reduce provider costs

The Elder Care Business:

FY 2007 Plan

Sales

•

Focus on Select Medical Products conversion & growth

•

Align compensation plans to growth opportunities

•

Expand sales representative bandwidth

Operations

•

Improved patient home delivery

Marketing

•

Enhance product marketing team

•

Market blitzes

The Elder Care Business:

Market Blitzes

Focused Quarterly Blitzes

What:

•

Q1 -

Compensation plan

•

Q2 -

Select Medical products

•

Q3 -

Proclaim

•

Q4 -

Answers Plus

Why:

•

Focus drives results

Where:

•

SNF (Reg

& Ind)

•

HHA (Reg

& Ind)

Success

•

Growth in sales

Measurements

•

Growth in profit contribution

The Elder Care Business:

FY 2007 Financial Goals

•

Revenue goal of 3% -

5%

(excluding lost business in FY05)

•

Operating margin goal of 3.9%

Thank You

David M. Bronson

Executive Vice President

and Chief Financial Officer

Investor Day

Conference

June 1, 2006

Atlanta Georgia

Investor Day 2006

Building a unique culture of:

•

Positioning for growth

•

Customer & market focus

•

Execution & operational excellence

Revenue Growth:

FY 2004 -

2006

1000

1200

1400

1600

1800

FY 03

FY 04

FY 05

FY 06

$1,178

$1,350

$1,474

$1,619

($ in millions)

Operating Income Growth :

FY 2004 -

2006

20

40

60

80

FY 03

FY 04

FY 05

FY 06

$25.9

$47.8

$61.6

$72.4

($ in millions)

Operating Margin Growth:

FY2004 -

2006

1

2

3

4

5

FY 03

FY 04

FY 05

FY 06

2.2%

3.5%

4.2%

4.5%

(Scale in %)

Earnings Per Diluted Share Growth*:

FY 2004 -

2006

0

0.15

0.3

0.45

0.6

0.75

FY 03

FY 04

FY 05

FY 06

$0.12

$0.42

$0.51

$0.66

*From continued operations

1

1 Excludes non-recurring tax benefit of $5.6 million,

or $0.09 per diluted share

Operating Cash Flow Growth:

FY 2004 –

FY2006

$21.9

$36.3

$67.7

($ in millions)

0

10

20

30

40

50

60

70

FY 04

FY 05

FY 06

Fiscal Year 2006:

Increased Shareholder Value

-40

-20

0

20

40

60

80

PSSI -

69.7%

MCK -

38.8%

CAH -

34.1%

HSIC -

33.5%

PDCO -

(29.5%)

3/31/05

3/31/06

Fiscal Year 2006:

Shared Services Achievements

•

Continued to leverage fixed costs on revenue growth

•

Reduced bank debt by $25.0 million to $0 at year-end FY2006

•

Interest expense reduced by $900k to $5.9 million

•

SAS and CSSI acquisitions completed

•

Significant investments in contract and rebate administration

•

Global sourcing traction and profitability

Shared Services: FY 2007 Plan

•

Develop and support growth of Select Medical Products brand

•

Continued focus on cash conversion cycle improvements

•

Optimize IT platforms –

focus on user effectiveness & efficiency

•

Support Smartscan

device and user growth

•

ETDBW

Fiscal Years 2007-

2008

Financial Goals

FY 2006 -

FY 2008:

EPS Growth Goals

Earnings per diluted share

from continuing operations

FY 2007*

$0.77

FY 2008*

$0.94

FY 2006

$0.66

FY 2005

$0.51

Growth

29%

Growth

17%

Growth

22%

FY2006 –

FY2008: Average Annual Growth of 23%

1

Excludes non-recurring tax benefit of $5.6 million or $0.09 per diluted share

* Mid point of goals of FY2007 of $0.76 -

$0.78 and FY2008 of $0.93 -

$0.95

1

Operating Margin Growth:

FY 2007 -

FY 2008

1

2

3

4

5

6

FY 03

FY 04

FY 05

FY 06

FY 07

FY 08

2.2%

3.5%

4.2%

4.5%

4.8%-5.0%

5.4%-5.6%

Actual

Goal

FY 2007: Financial Goals

•

Consolidated revenue growth

8%-10%

(Includes expected sale of 5 million influenza doses)

•

Operating cash flow

$58.0 -

$60.0 million

•

Earnings per diluted share

$0.76 -

$0.78

•

Consolidated operating margin growth

30-50 bps

Fiscal Year 2003 -

2005:

Historical Earnings Progression By Quarter

10%

15%

20%

25%

30%

35%

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

FY 2005

FY 2004

FY 2003

FY 2003 -

FY 2005

FY2005: excludes tax benefit of $5.6 million or $0.09 per diluted share

Fiscal Year 2003 -

2006:

Historical Earnings Progression By Quarter

10%

15%

20%

25%

30%

35%

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

FY 2005

FY 2004

FY 2003

FY 2003 -

FY 2006

FY 2006

FY2005: excludes tax benefit of $5.6 million or $0.09 per diluted share

Acquisition Strategy:

FY 2007 -

FY 2008

•

Target assets complementary to core business strategy

-

Fold-ins

-

Strategic

•

Size range $10mm -

$50mm of revenues

•

Accretive within 12 months

•

Funded with cash flows and bank debt

•

1 -

2 each year, both businesses

What Does the CFO Focus On:

FY2007 –

FY2008

•

Achievement and reporting of business plan metrics

•

Cost effective sources of capital for growth

•

Shared services cost leverage

•

Contingency planning

•

Acquisition strategy to complement and augment 3-year

business plan

•

Corporate governance and internal business controls

PSSI: Partner with our growth

•

Strong corporate governance and ethics

•

Leader in markets served, with significant new growth opportunities

•

Unique business and service model –

barriers to entry

•

Strong balance sheet and flexibility to fund growth

•

Growing operating cash flows and operating margin

•

Sustainable revenue and earnings growth momentum

•

20%+ Compounded EPS growth: FY2006 –

FY2008

Investment considerations

Thank You