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

7,919 32,370 29,735

Technology and content 4,388 4,199 18,258 16,190

General and administrative 3,795 3,503 18,428 15,413

Amortization of

intangible assets 244 468 1,234 2,060

Total costs and

expenses 118,477 111,983 456,409 430,533

Operating loss (254) (3,385) (10,686) (14,756)

Interest income, net 410 438 1,675 1,730

Net income (loss) $156 $(2,947) $(9,011) $(13,026)

Basic net income

(loss) per share $0.00 $(0.03) $(0.09) $(0.14)

Diluted net income

(loss) per share $0.00 $(0.03) $(0.09) $(0.14)

Weighted average shares

used in computation of:

Basic net income

(loss) per share 96,229,531 94,027,508 95,350,046 93,405,405

Diluted net income

(loss) per share 97,894,513 94,027,508 95,350,046 93,405,405

(1) Set forth below are the amounts of stock-based compensation by

operating function recorded in the Statements of Operations:

Fulfillment and order

processing $138 $196 $784 $835

Marketing and sales 303 233 1,381 1,058

Technology and content 289 225 1,224 1,071

General and administrative 957 1,051 5,412 3,757

$1,687 $1,705 $8,801 $6,721

(2) Set forth below are the amounts of depreciation by operating function

recorded in the Statements of Operations:

Fulfillment and order

processing $466 $368 $1,826 $1,476

Marketing and sales -
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SOURCE drugstore.com, inc.
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