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drugstore.com inc. Achieves GAAP Profitability in the Fourth Quarter of 2007
Date:2/6/2008

stomer base (a

trailing 12-month number) and average annual spend per active customer

exclude net sales and orders generated by the company's CNS fulfillment

relationship with Weil, and reflect only the activity of customers

making purchases through the Web sites of drugstore.com and its

subsidiaries.

Conference Call

Investors, analysts, and other interested parties are invited to join the drugstore.com, inc. quarterly conference call on February 6, 2008 at 5:00 p.m. ET (2:00 p.m. PT). To participate, callers should dial 800-257-2182 (international callers should dial 303-262-2140) five minutes beforehand. Investors may also listen to the conference call live at http://investor.drugstore.com/, by clicking on the "audio" hyperlink. A replay of the call will be available through Friday, February 8, 2008 by dialing 800-405-2236 (enter pass code 11106968#) or internationally at 303-590-3000 (enter pass code 11106968#) beginning two hours after completion of the call.

Non-GAAP Measures

To supplement the consolidated financial statements presented in accordance with GAAP, drugstore.com, inc. uses the non-GAAP measure of adjusted EBITDA, defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expenses, adjusted to exclude the impact of stock-based compensation expense. This non-GAAP measure is provided to enhance the user's overall understanding of the company's current financial performance. Management believes that adjusted EBITDA, as defined, provides useful information to the company and to investors by excluding certain items that may not be indicative of the company's core operating results. In addition, because drugstore.com, inc. has historically provided adjusted EBITDA measures to investors, management believes that including adjusted EBITDA measures provides consistency
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SOURCE drugstore.com, inc.
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