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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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drugstore.com Announces Strategic Alliance With Medco Health Solutions

BELLEVUE, Wash., Nov. 20 /PRNewswire-FirstCall/ -- drugstore.com, inc., (Nasdaq: DSCM) a leading online retailer of health, beauty, vision, and pharmacy products, today announced a strategic alliance with Medco Health Solutions, Inc. (NYSE: MHS), the nation's leading pharmacy benefit manager, under which Medco will offer its members access to an integrated online store featuring a wide range of non-prescription consumer health products, including over-the-counter (OTC) medicines, expected to begin in mid-2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070813/AQM043LOGO)

"We look forward to developing this exciting new offering with Medco, which provides pharmacy benefits for over 60 million Americans," said Dawn Lepore, chief executive officer and chairman of the board of drugstore.com, inc. "The alliance supports our strategy to leverage the drugstore.com ecommerce health, beauty and wellness platform and extend our leadership in consumer health merchandising, marketing, fulfillment, and customer care."

drugstore.com will provide technical development and operation services, consumer health products and OTC merchandising, fulfillment capabilities and customer care for the non-prescription-drug offerings in the Medco branded online store.

"We envision this collaboration with drugstore.com will, over time, enable Medco to efficiently develop and deliver a broad spectrum of new consumer-based products and services that complement our prescription drug expertise and extend the continuum of care for the approximately one in five Americans we serve nationwide," said John Driscoll, president, New Markets, Medco Health Solutions.

Through the agreement, Medco will provide its members access to a comprehensive portfolio of health-related products that complement prescription drug care -- especially for patients with chronic and complex conditions. Members will be presented with a tailored set of non-prescription products aligned with their known health condition, and access to a broader set of consumer health items that provide convenient one-stop shopping. Members will also benefit from an advanced safety net to help ensure that for certain OTC medicines they are informed of interactions with the prescription drugs that they may also be taking -- a growing issue in the retail pharmacy environment as more medicines transition from prescription to OTC availability.

FSA (flexible spending account) services for Medco clients and members will be supported through the drugstore.com SIGIS certified system to identify and approve FSA-eligible over-the-counter products. FSA debit cards are accepted and FSA-only receipts may be printed for reimbursement.

About drugstore.com, inc.

drugstore.com, inc. (NASDAQ:DSCM) is a leading online retailer of health, beauty, vision and pharmacy products. Our portfolio of brands include: drugstore.com(TM), Beauty.com(TM) and VisionDirect.com(TM). All are accessible from http://www.drugstore.com and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 40,000 products at competitive prices.


    The drugstore.com pharmacy is certified by the National Association of
Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site
(VIPPS) and operates in compliance with federal and state laws and regulations
in the United States.

     Media:                                    Investors:
     Anne Marshall                             Brinlea Johnson
     drugstore.com                             The Blueshirt Group
     425.372.3464                              212-551-1453
     amarshall@drugstore.com                   brinlea@blueshirtgroup.com

SOURCE drugstore.com, inc.

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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