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

h, cash equivalents and marketable securities were $34.7 million at

quarter end.

Net Sales Summary:

-- Core OTC (1) revenues grew by approximately 16% to $64.4 million in the

quarter. OTC net sales grew by over 15% to $64.9 million.

-- Vision net sales grew approximately 14% to $15.4 million.

-- Local pick-up pharmacy net sales were up approximately 6% to

$28.1 million.

-- Mail-order pharmacy net sales were down to $12.3 million, while

contribution margins dollars increased approximately 16%.

-- Average net sales per order were $76 for the quarter. Average net

sales per order increased to $58 for OTC, grew 12% to $108 for vision,

and were $106 for local pick-up pharmacy and $164 for mail-order

pharmacy.

-- Net sales from repeat customers(2) represented 81% of net sales.

Key Customer Milestones:

-- We served approximately 374,000 new customers during the quarter, an

11% increase over the prior year.

-- We have now served nearly 10.2 million customers since inception.

-- The number of active customers (3) was 2.6 million.

1. Core OTC net sales is a non-GAAP financial measure that excludes from

OTC net sales the company's Custom Nutrition Services ("CNS") net

sales. CNS sales are generated by sales of customized vitamins through

the company's CNS subsidiary. Prior to December 31, 2005, all CNS

sales were recognized on a gross basis, net of promotional discounts,

cancellations, rebates and returns allowances. Under the terms of the

company's December 31, 2005 fulfillment agreement with Weil Lifestyle,

LLC (Weil), the company recognizes on a net basis the revenue

associated with the fulfillment of customized vitamins sold through

its fulfillment agreement with Weil. A reconciliation of OTC net sales

to core OTC net sales
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SOURCE drugstore.com, inc.
Copyright©2008 PR Newswire.
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