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drugstore.com inc. Reports Record Gross Margins and Bottom Line Results for the Third Quarter of 2007
Date:10/22/2007

p with Weil, and reflect only the activity of customers

making purchases through the Web sites of drugstore.com and its

subsidiaries.

Conference Call

Investors, analysts, and other interested parties are invited to join the drugstore.com, inc. quarterly conference call on Monday, October 22, 2007 at 5:00 p.m. ET (2:00 p.m. PT). To participate, callers should dial 800-218-8862 (international callers should dial 303-262-2141) five minutes beforehand. Investors may also listen to the conference call live at http://investor.drugstore.com/, by clicking on the "audio" hyperlink. A replay of the call will be available through Wednesday, October 24, 2007 at 800-405-2236 (enter pass code 11098778#) or internationally at 303-590-3000 (enter pass code 11098778#) beginning two hours after completion of the call.

Non-GAAP Measures

To supplement the consolidated financial statements presented in accordance with GAAP, drugstore.com, inc. uses the non-GAAP measure of adjusted EBITDA, defined as earnings before interest, taxes, depreciation, and amortization of intangible assets and non-cash marketing expenses, adjusted to exclude the impact of stock-based compensation expense. This non-GAAP measure is provided to enhance the user's overall understanding of the company's current financial performance. Management believes that adjusted EBITDA, as defined, provides useful information to the company and to investors by excluding certain items that may not be indicative of the company's core operating results. In addition, because drugstore.com, inc. has historically provided adjusted EBITDA measures to investors, management believes that including adjusted EBITDA measures provides consistency in the company's financial reporting. However, adjusted EBITDA should not be considered in isolation, or as a substitute for, or as superior to, net income/loss, cash flows, or other consolidated l
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SOURCE drugstore.com, inc.
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