The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, v. t. [imp. & p. p. Dispensed; p. pr. &
   vb. n. Dispensing.] [F. dispenser, L. dispensare, intens.
   of dispendere. See Dispend.]
   1. To deal out in portions; to distribute; to give; as, the
      steward dispenses provisions according directions; Nature
      dispenses her bounties; to dispense medicines.
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            He is delighted to dispense a share of it to all the
            company.                              --Sir W.
                                                  Scott.
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   2. To apply, as laws to particular cases; to administer; to
      execute; to manage; to direct.
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            While you dispense the laws, and guide the state.
                                                  --Dryden.
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   3. To pay for; to atone for. [Obs.]
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            His sin was dispensed
            With gold, whereof it was compensed.  --Gower.
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   4. To exempt; to excuse; to absolve; -- with from.
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            It was resolved that all members of the House who
            held commissions, should be dispensed from
            parliamentary attendance.             --Macaulay.
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            He appeared to think himself born to be supported by
            others, and dispensed from all necessity of
            providing for himself.                --Johnson.
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The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, n. [Cf. F. dispense dispensation. See
   Dispense, v. t.]
   Dispensation; exemption. [Obs.]
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The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, n. [OF. despense, F. d['e]pense.]
   Expense; profusion; outlay. [Obs.]
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         It was a vault built for great dispense. --Spenser.
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The Collaborative International Dictionary of English v.0.48:

Dispense \Dis*pense"\, v. i.
   1. To compensate; to make up; to make amends. [Obs.]
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            One loving hour
            For many years of sorrow can dispense. --Spenser.
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   2. To give dispensation.
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            He [the pope] can also dispense in all matters of
            ecclesiastical law.                   --Addis &
                                                  Arnold (Cath.
                                                  Dict. )
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   To dispense with.
      (a) To permit the neglect or omission of, as a form, a
          ceremony, an oath; to suspend the operation of, as a
          law; to give up, release, or do without, as services,
          attention, etc.; to forego; to part with.
      (b) To allow by dispensation; to excuse; to exempt; to
          grant dispensation to or for. [Obs.] "Conniving and
          dispensing with open and common adultery." --Milton.
      (c) To break or go back from, as one's word. [Obs.]
          --Richardson.
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WordNet (r) 3.0 (2006):

dispense
    v 1: administer or bestow, as in small portions; "administer
         critical remarks to everyone present"; "dole out some
         money"; "shell out pocket money for the children"; "deal a
         blow to someone"; "the machine dispenses soft drinks" [syn:
         distribute, administer, mete out, deal, parcel
         out, lot, dispense, shell out, deal out, dish
         out, allot, dole out]
    2: grant a dispensation; grant an exemption; "I was dispensed
       from this terrible task"
    3: give or apply (medications) [syn: administer, dispense]

Moby Thesaurus II by Grady Ward, 1.0:

143 Moby Thesaurus words for "dispense":
   OK, abolish, abstain from, accord, administer, admit, afford,
   allocate, allot, allow, apply, apportion, assign, award, bestow,
   bestow on, bestrew, broadcast, cancel, carry out, circumfuse,
   communicate, conduct, confer, consent, deal, deal out, diffract,
   diffuse, direct, disburse, discharge, dish out, dispense with,
   disperse, dispose, dispose of, dispread, disseminate, distribute,
   diverge, divide, divvy, do away with, do without, dole, dole out,
   donate, eliminate, enforce, eschew, execute, extend, fan out,
   forgo, fork out, forswear, furnish, get rid of, gift, gift with,
   give, give away, give freely, give leave, give out,
   give permission, give the go-ahead, give the word, give up, grant,
   hand out, hawk, heap, help to, huckster, ignore, impart, implement,
   issue, lavish, leave, let, let have, make possible, measure,
   measure out, mete, mete out, offer, okay, operate, overscatter,
   oversow, overspread, parcel out, pass around, pass out, pay out,
   peddle, permit, portion out, pour, present, proffer, propagate,
   provide, publish, radiate, rain, refuse, reject, release,
   relinquish, remove, render, renounce, retail, say the word,
   scatter, serve, share out, shell out, shower, slip, snow, sow,
   sow broadcast, spare, splay, spoon out, spread, spread out, strew,
   superintend, supervise, supply, tender, utter, vend, vouchsafe,
   waive, yield