Medco Full-Year and Fourth-Quarter Earnings Results Exceed High End of Company Ex...( 2008 Guidance Increased and Range N...),Health

2008 Guidance Increased and Range Narrowed, Reflecting Continued Strong

Growth

Full-Year 2007 Highlights: - GAAP diluted earnings per share (EPS) increased 34.3 percent to $3.25 pre-split compared to 2006, excluding the

2006 legal settlements charge, and increased 34.7 percent to $1.63

post-split compared to 2006, excluding the first-quarter 2006 legal

settlements charge (see Table 4 for stock split details) - Excluding the intangible asset amortization from the 2003 spin-off, and the 2006 legal charge, diluted EPS increased 30.9 percent to $3.64 pre- split and $1.82 post-split, exceeding the high end of EPS guidance by $0.04

on a pre-split and $0.02 post-split basis - Record mail-order prescription volume of 94.8 million, up 6.5 percent - Record-low drug trend of 2 percent reflecting $2.5 billion in generic

savings for clients and members Fourth-Quarter Year-Over-Year Highlights: - GAAP diluted EPS of $0.76

pre-split and $0.38 post-split - Excluding the intangible asset amortization from the 2003 spin-off,

diluted EPS of $0.86 pre-split and $0.43 post-split - Record generic dispensing rate of 61.4 percent, up 4.1 percentage points Increased 2008 Guidance and Narrowed Range: - On a pre-split basis, 2008 GAAP diluted EPS guidance increased from a range of $3.89-$4.01 to $4.14 -$4.22. On a post-split basis, 2008 GAAP diluted EPS guidance increased from a range of $1.95-$2.01 to $2.07- $2.11, representing growth of 27-29

percent over 2007. - Excluding the intangible asset amortization, 2008 diluted EPS guidance increased from a range of $4.29-$4.41 to $4.54-$4.62 on a pre-split basis. On a post-split basis, 2008 diluted EPS guidance, excluding the intangible asset amortization, increased from a range of $2.15-$2.21 to $2.27-$2.31,

representing
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