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drugstore.com inc. Reports Results for the First Quarter of 2008
Date:5/5/2008

$2,076 $1,891

SUPPLEMENTAL INFORMATION: Gross Profit and Gross Margin Information:

Three Months Ended

March 30, April 1,

(In thousands, unless otherwise indicated) 2008 2007

Net sales $120,637 $109,765

Cost of sales 91,723 85,062

Gross profit $28,914 $24,703

Gross margin 24.0% 22.5%

SUPPLEMENTAL INFORMATION: Reconciliation of OTC net sales, cost of sales,

gross profit, gross margin, variable order costs, and contribution margin

to Core OTC net sales, cost of sales, gross profit, gross margin, variable

order costs and contribution margin (See Note 3 below):

Three Months Ended

March 30, April 1,

2008 2007

(In thousands)

Over-the-Counter (OTC):

Net sales $64,851 $56,262

CNS 476 503

Core OTC net sales $64,375 $55,759

Cost of sales $45,013 $39,651

CNS 37 27

Core OTC cost of sales $44,976 $39,624

Gross profit 19,838 16,611

CNS 439 476

Core OTC gross profit $19,399
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SOURCE drugstore.com, inc.
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