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drugstore.com inc. Reports Profitable Fourth Quarter of 2008 and Free Cash Flow of $5.4 Million on Record OTC Sales
Date:2/4/2009

$0.00 $(0.02) $(0.09) $(0.12) Weighted average shares used in computation of: Basic net income (loss) per share 96,540,101 96,229,531 96,481,787 95,350,046 Diluted net income (loss) per share 96,643,524 96,229,531 96,481,787 95,350,046 (1) Set forth below are the amounts of stock-based compensation by operating function recorded in the Statements of Operations: Fulfillment and order processing $136 $138 $576 $784 Marketing and sales 471 303 1,619 1,381 Technology and content 335 289 1,265 1,224 General and administrative 844 957 4,104 5,412 $1,786 $1,687 $7,564 $8,801 (2) Set forth below are the amounts of depreciation by operating function recorded in the Statements of Operations: Fulfillment and order processing $740 $466 $2,653 $1,826 Marketing and sales 1 - 4 3 Technology and content 2,162 1,185 7,780 5,252 General and administrative 114 110 475 423 $3,017 $1,761 $10,912 $7,504 SUPPLEMENTAL INFORMATION: Gross Profit and Gross Margin Information: Three Months Ended Twelve Months Ended (In thousands, unless December 28, December 30, December 28, December 30, otherwise indicated) 2008 2007 2008 2007 Net sales $93,940 $91,307 $366,579 $339,331 Cost of sales 67,127 65,764 263,697 248,308 Gro
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