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

nd, and building a critical mass of customers, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, risks related to business combinations and strategic alliances, possible tax liabilities relating to the collection of sales tax, consumer trends, the level of competition, seasonality, the timing and success of expansion efforts, changes in senior management, risks related to systems interruptions, possible governmental regulation and the ability to manage a growing business. Additional information regarding factors that potentially could affect the business, financial condition and operating results of drugstore.com, inc. is included in the company's periodic filings with the SEC on Forms 10-K, 10-Q and 8-K. drugstore.com, inc. expressly disclaims any intent or obligation to update any forward-looking statement, except as otherwise specifically stated by it.

Contact:

Investor Relations:

Brinlea Johnson or Chris Danne

415-489-2189

brinlea@blueshirtgroup.com or chris@blueshirtgroup.com

drugstore.com, inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(unaudited)

Three Months Ended Twelve Months Ended

December 30, December 31, December 30, December 31,

2007 2006 2007 2006

Net sales $118,223 $108,598 $445,723 $415,777

Costs and expenses:(1)(2)

Cost of sales 89,109 85,190 341,919 326,036

Fulfillment and

order processing 11,999 10,704 44,200 41,099

Marketing and sales 8,942
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SOURCE drugstore.com, inc.
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