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CVS Caremark Reports Record Results in Fourth Quarter and Year 2008
Date:2/19/2009

- 18,290.4 Operating profit 2,562.5 3,483.7 - 6,046.2 December 29, 2007: Net revenues $34,938.4 $45,086.5 $(3,695.4) $76,329.5 Gross profit 2,997.1 13,110.6 - 16,107.7 Operating profit 2,102.0 2,691.3 - 4,793.3

(1) On December 23, 2008, our Board of Directors approved a change in our fiscal year end from the Saturday nearest December 31 of each year to December 31 of each year to better reflect our position in the health care, rather than retail, industry. The fiscal year change was effective beginning with the fourth quarter of fiscal 2008. Prior to Board approval of this change, the Saturday nearest December 31, 2008 would have resulted in a 53-week fiscal year that would have ended January 3, 2009. As you review our operating performance, please consider that fiscal years 2008 and 2007 and the fourth quarters of fiscal 2008 and 2007 include 368 days, 364 days, 95 days and 91 days, respectively.

(2) Net revenues of the Pharmacy Services Segment include approximately $1,643.7 million and $1,595.5 million of Retail Co-payments for the fiscal quarter ended December 31, 2008 and December 29, 2007, respectively. Net revenues of the Pharmacy Services Segment include approximately $6,348.3 million and $4,618.2 million of Retail Co-payments for the fiscal year ended December 31, 2008 and December 29, 2007, respectively.

(3) Intersegment eliminations relate to intersegment revenues and accounts receivables that occur when a Pharmacy Services Segment customer uses a Retail Pharmacy Segment store to purchase covered products. When this occurs, both segments record the revenue on a standalone basis.

(4) The fourth quarter of fiscal 2008 and fiscal 2008 include the results of RxAmerica from the acquisition date (October 20, 2008) forward.

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SOURCE CVS Caremark Corporation
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