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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

blishing our brand, 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.

    1.  Core OTC net sales is a non-GAAP financial measure that excludes from
        OTC net sales the company's Custom Nutrition Services ("CNS") net
        sales. CNS sales are generated by sales of customized vitamins through
        the company's CNS subsidiary. A reconciliation of OTC net sales to
        core OTC net sales is included in the financial data accompanying this
        press release.
    2.  Net sales from repeat customers exclude Weil-related CNS net sales and
        reflect only the activity of customers making purchases through the
        Web sites of drugstore.com, inc. and its subsidiaries.
    3.  Active customer base reflects those customers who have purchased at
        least once within the last 12 months. Both the active customer 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
  
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SOURCE drugstore.com, inc.
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