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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

cognized 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 is included in the financial data accompanying this

press release.

2. Net sales from repeat customers exclude Weil-related CNS net sales and

reflect only the activity of customers making purchases through the Web

sites of drugstore.com, inc. and its subsidiaries.

3. Active customer base reflects those customers who have purchased at

least once within the last 12 months. Both the active customer base (a

trailing 12-month number) and average annual spend per active customer

exclude net sales and orders generated by the company's CNS fulfillment

relationship with Weil, and reflect only the activity of customers

making purchases through the Web sites of drugstore.com, inc. and its

subsidiaries.

Conference Call

Investors, analysts, and other interested parties are invited to join the drugstore.com, inc. quarterly conference call on November 5, 2008 at 5:00 p.m. ET (2:00 p.m. PT). To participate, callers should dial 866-250-2351 (international callers should dial 303-262-2130) five minutes beforehand. Investors may also listen to the conference call live at http://investor.drugstore.com/, by clicking on the "audio" hyperlink. A replay of the call will be available through Friday, November 7, 2008 by dialing 800-405-2236 (enter pass code 11121487#) or internationally at 303-590-3000 (enter pass code 11121487#) beginning two hours after completi
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SOURCE drugstore.com, inc.
Copyright©2008 PR Newswire.
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