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CVS Caremark Reports Record Second Quarter Revenues, Operating Profit, and Earnings
Date:7/31/2008

At the same time, we've further advanced our new PBM/retail model and our clients have expressed growing enthusiasm for our unique new product offerings."

Loss from discontinued operations:

In connection with business dispositions completed between 1991 and 1997, the Company continues to guarantee store lease obligations for a number of former subsidiaries, including Linens 'n Things ("Linens"). On May 2, 2008, Linens Holding Co., which operates Linens, filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. As a result, CVS Caremark reported a $48.7 million net loss, or $0.03 per diluted share, from discontinued operations for the thirteen and twenty-six weeks ended June 28, 2008. The net loss from discontinued operations consists of lease-related costs (net of income tax benefit), which the Company may be required to satisfy pursuant to the guarantee of certain Linens' store lease obligations.

Real estate program

For the quarter, CVS Caremark opened 49 new retail pharmacy stores, closed 8 retail pharmacy stores, and relocated 39 others. As of June 28, 2008, the Company operated 6,308 retail pharmacy stores, 56 specialty pharmacy stores, 19 specialty mail order pharmacies and 7 mail order pharmacies in 44 states and the District of Columbia.

Teleconference and webcast

The Company will be holding a conference call today for the investment community at 8:30 am (EDT) to discuss its quarterly results. An audio webcast of the conference call will be broadcast simultaneously through the Investor Relations portion of the CVS website for all interested parties. To access the webcast, visit http://investor.CVS.com. This webcast will be archived and available on the web site for a one-month period following the conference call.

About the Company

CVS Caremark is the largest pro
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SOURCE CVS Caremark Corporation
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