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CVS Caremark Uniquely Integrated Business Well-Positioned to Deliver Shareholder Value
Date:5/11/2011

WOONSOCKET, R.I., May 11, 2011 /PRNewswire-FirstCall/ -- CVS Caremark's (NYSE: CVS) uniquely integrated pharmacy care business is well-positioned to deliver shareholder value, CEO Larry Merlo told attendees today at CVS Caremark's Annual Meeting of Stockholders.  "Our combined business model provides greater access, convenience and choice to consumers and is helping patients improve their health and lower their overall health care costs," Merlo said.  

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Speaking at the Annual Meeting of Stockholders for the first time as CVS Caremark CEO, Merlo said, "The fact is no one else can match our combination of assets -- a leading PBM, one of the largest retail pharmacy chains, a leading specialty pharmacy, a growing Medicare Part D business, and the largest and fastest-growing network of retail health clinics. CVS Caremark is using these combined assets to develop and implement innovative programs and offerings, such as Pharmacy Advisor and Maintenance Choice, which should drive long term value for shareholders."

Merlo said the company has a clear strategy for building future success. The plan includes a streamlining effort that will cut $1 billion in costs out of pharmacy benefit management (PBM) operations, continued superior performance of the retail pharmacies and expanding health care services at MinuteClinic over the next several years.

"We have a solid base that is expected to lead to steady growth in operating income and significant free cash flow over the next several years," Merlo said. "We have a great management team and a breadth of capabilities that is unmatched in our industry. We strongly believe that our strategy fits in extremely well with the goals of health reform and the priorities of payors, which bodes well for a bright future."

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