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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

corded in the Statements of Operations:

Fulfillment and order

processing $440 $328 $1,360 $1,108

Marketing and sales 1 - 3 1

Technology and

content 1,397 1,053 4,067 3,055

General and

administrative 103 113 313 36

$1,941 $1,494 $5,743 $4,500

SUPPLEMENTAL INFORMATION: Gross Profit and Gross Margin Information:

Three Months Ended Nine Months Ended

September 30, October 1, September 30, October 1,

(In thousands, 2007 2006 2007 2006

unless otherwise

indicated)

Net sales $107,323 $100,634 $327,500 $307,179

Cost of sales 82,431 79,012 252,810 240,846

Gross profit $24,892 $21,622 $74,690 $66,333

Gross margin 23.2% 21.5% 22.8% 21.6%

SUPPLEMENTAL INFORMATION: Segment Information:

Three Months Ended Nine Months Ended

September 30, October 1, September 30, October 1,

2007 2006 2007 2006

Net sales:

Over-the-Counter (OTC) $54,623 $45,605 $168,412 $141,865

Mail-order pharmacy 11,485 17,178 37,414 52,883

Local pick-up pharmacy 26,364 25,150 79,476 74,692

Vision 14,851 12,701 42,198 37,739

$107,323 $100,634 $327,500 $307,179

Cost of sales:

Over-the-Counter (OTC) $38,630 $31,848 $119,091 $99,144

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SOURCE drugstore.com, inc.
Copyright©2007 PR Newswire.
All rights reserved

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