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drugstore.com inc. Reports Solid Revenue Growth and Record Gross Margins in the Third Quarter of 2008
Date:11/5/2008

429 446 1,365 1,431

Core OTC net

sales $60,794 $54,177 $189,620 $166,981

Cost of sales $41,858 $38,630 $131,970 $119,091

CNS 20 157 112 198

Core OTC cost

of sales $41,838 $38,473 $131,858 $118,893

Gross profit 19,365 15,993 59,015 49,321

CNS 409 289 1,253 1,233

Core OTC gross

profit $18,956 $15,704 $57,762 $48,088

Gross margin 31.6% 29.3% 30.9% 29.3%

CNS 95.3% 64.8% 91.8% 86.2%

Core OTC gross

margin 31.2% 29.0% 30.5% 28.8%

Variable order costs $5,677 $5,232 $17,511 $15,780

CNS 142 138 424 437

Core OTC variable

order costs $5,535 $5,094 $17,087 $15,343

Contribution margin 13,688 10,761 41,504 33,541

CNS 267 151 829 796

Core OTC

contribution

margin $13,421 $10,610 $40,675 $32,745

NOTE 3: Supplemental information related to the company's Core OTC netsales, cost of sales, gross profit, gross margin, variable order costs and contribution margin for the three and nine months ended September 28, 2008 and September 30, 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 substan
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SOURCE drugstore.com, inc.
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