drugstore.com inc. Reports Profitable Fourth Quarter of 2008 and Free Cash Flow of $5.4 Million on Record... (blishing our brand andbuilding a critica...)

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.
Copyright©2009 PR Newswire.
All rights reserved
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1. drugstore.com and Revolution Health Group Announce Breakthrough Deal
2. drugstore.com, inc. to Announce Third Quarter 2007 Results During Conference Call on Monday, October 22, 2007 at 5:00 p.m. ET
3. drugstore.com inc. Reports Record Gross Margins and Bottom Line Results for the Third Quarter of 2007
4. drugstore.com inc. Achieves GAAP Profitability in the Fourth Quarter of 2007
5. drugstore.com, inc. to Present at the Upcoming Jefferies 4th Annual Internet Conference and the Morgan Stanley Technology Conference
6. drugstore.com, inc. to Announce First Quarter 2008 Results During Conference Call on Monday, May 5, 2008 at 5:00 p.m. ET
7. drugstore.com inc. Reports Results for the First Quarter of 2008
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9. drugstore.com inc. Reports Solid Revenue Growth and Record Gross Margins in the Third Quarter of 2008
10. drugstore.com Offers Free Shipping to U.S. Troops Serving Overseas and in the United States
11. drugstore.com Announces Strategic Alliance With Medco Health Solutions

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