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

$16,135

Gross margin 30.6% 29.5%

CNS 92.2% 94.6%

Core OTC gross margin 30.1% 28.9%

Variable order costs $5,965 $5,368

CNS 139 170

Core OTC variable order costs $5,826 $5,198

Contribution margin 13,873 11,243

CNS 300 306

Core OTC contribution margin $13,573 $10,937

NOTE 3: Supplemental information related to the company's Core OTC net

sales, cost of sales, gross profit, gross margin, variable order costs and

contribution margin for the three months ended March 30, 2008 and April 1,

2007 is presented for informational purposes only and is not prepared in

accordance with generally accepted accounting principles. On December 31,

2005, we entered into a fulfillment agreement with Weil Lifestyles, LLC,

resulting in Weil-related CNS net sales (which make up the substantial

majority of CNS net sales) being recorded on a net basis after that date.

All CNS sales were previously recorded on a gross basis.

SUPPLEMENTAL INFORMATION: Segment Information:

Three Months Ended

March 30, April 1,

2008 2007

Net sales:

Over-the-Counter (OTC) $64,851 $56,262

Vision 15,436 13,552

Mail-order pharmacy 12,281 13,478

Local pick-up pharmacy
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SOURCE drugstore.com, inc.
Copyright©2008 PR Newswire.
All rights reserved

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