drugstore.com Reports Highest Net Revenues in Compa...(llars per order increased to approximate...),Health

Net Sales Summary:

• OTC net sales grew by over 11% to $72.1 million for the quarter, including Beauty.com growth of 14%.
• Vision net sales grew 13% to $17.4 million for the quarter.
• Mail-order pharmacy net sales decreased 28% to $8.8 million.
• Average net sales per order were $67. Average net sales per order were $57 for OTC, grew 6.5% to $115 for vision, and decreased to $151 for mail-order pharmacy.
• Net sales from repeat customers [1] represented 77% of net sales.

Key Customer Milestones:

• We served approximately 400,000 new customers, inclusive of our strategic partnerships, during the quarter, up 15% over the same period in the prior year.
• Marketing and sales expense per new customer decreased 1% to approximately $23.50.
• We have now served over 10.2 million customers since inception.
• The number of active customers [2] was 2.7 million, up 10.5% year over year.

[1] Net sales from repeat customers exclude Weil Lifestyle, LLC (Weil) related Custom Nutrition Services (CNS) net sales and reflect only the activity of customers making purchases through the Web sites of drugstore.com, inc. and its subsidiaries.

[2] Active customer base reflects those customers who have purchased at least once within the last 12 months. Both
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