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

ugher economic environment without sacrificing margin. Additionally, we are pleased with the benefits we are seeing from our improved operational efficiencies and grew contribution margin dollars 22% year-over-year, exceeding $20.0 million for the first time in company history. Based on growing sales and expanding margins, we reported positive adjusted EBITDA that almost doubled from the first quarter of 2007, despite investing over $1.3 million on our profitability initiatives."

"Beauty.com remains key to our strategy and since the beginning of the year, we have added a record 31 new prestige brands compared to 50 brands in all of fiscal 2007. Profitability remains our top priority and we will continue to drive margin expansion and improve operational efficiencies throughout 2008- targeting to exit the year with gross margins above 26%, adjusted EBITDA margins between 5-6% and GAAP profitability for the full year," concluded Ms. Lepore.

The Company also announced today that chief financial officer, There du Pont will be resigning to run a private foundation effective May 29. Mr. du Pont will continue as a consultant for the company until the end of August. To replace Mr. du Pont, drugstore.com is promoting two senior financial executives effective May 29, 2008 -- Rob Potter, current Vice President, Chief Accountant, will be Vice President, Chief Accounting Officer and Tracy Wright, current Vice President of Financial Planning and Analysis, will be Vice President, Chief Finance Officer.

"Rob and Tracy have each been with drugstore.com over four years and have stepped up to spearhead the finance team," explained Ms. Lepore. "They share over 34 years of combined corporate finance experience and I feel very confident that they are the right team to lead our finance organization. We have also recently hired Jon Axelsson from Wawa, Inc. who brings over 20 years of experience in warehousing and transportation operations, to take over There's operation
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SOURCE drugstore.com, inc.
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