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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

customers making purchases through the Web sites of drugstore.com, inc. and its subsidiaries. Contact: Investor Relations: Brinlea Johnson 212-551-1453 brinlea@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 28, December 30, December 28, December 30, 2008 2007 2008 2007 Net sales $93,940 $91,307 $366,579 $339,331 Costs and expenses: (1) (2) Cost of sales 67,127 65,764 263,697 248,308 Fulfillment and order processing 10,463 10,889 43,377 39,817 Marketing and sales 9,100 8,369 33,591 30,080 Technology and content 6,063 4,388 23,011 18,258 General and administrative 3,878 6,295 19,034 20,928 Amortization of intangible assets 206 244 867 1,234 Total costs and expenses 96,837 95,949 383,577 358,625 Operating loss (2,897) (4,642) (16,998) (19,294) Interest income, net 115 410 631 1,675 Loss from continuing operations (2,782) (4,232) (16,367) (17,619) Income from discontinued operations 3,071 1,888 8,080 6,108 Net income (loss) $289 $(2,344) $(8,287) $(11,511) Basic and diluted net income (loss) per share
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