drugstore.com inc. Achieves GAAP Profitability in the Fourth Quart...(Three Months Ended Twelve Months ...),Health

December 30, December 31, December 30, December 31,

2007 2006 2007 2006

Net sales:

Over-the-Counter (OTC) $65,870 $56,099 $234,282 $197,964

Mail-order pharmacy 12,729 14,496 50,143 67,379

Local pick-up pharmacy 26,916 25,962 106,392 100,654

Vision 12,708 12,041 54,906 49,780

$118,223 $108,598 $445,723 $415,777

Cost of sales:

Over-the-Counter (OTC) $45,378 $40,530 $164,469 $139,674

Mail-order pharmacy 10,737 12,383 41,935 58,026

Local pick-up pharmacy 23,345 22,943 93,611 89,654

Vision 9,649 9,334 41,904 38,682

$89,109 $85,190 $341,919 $326,036

Gross profit:

Over-the-Counter (OTC) 20,492 15,569 69,813 58,290

Mail-order pharmacy 1,992 2,113 8,208 9,353

Local pick-up pharmacy 3,571 3,019 12,781 11,000

Vision 3,059 2,707 13,002 11,098

$29,114 $23,408 $103,804 $89,741

Gross margin:

Over-the-Counter (OTC) 31.1% 27.8% 29.8% 29.4%

Mail-order pharmacy 15.6% 14.6% 16.4% 13.9%

Local pick-up pharmacy 13.3% 11.6% 12.0% 10.9%

Vision 24.1% 22.5% 23.7% 22.3%

24.6% 21.6% 23.3% 21.6%

Variable order costs:

Over-the-Counter (OTC) $6,479 $5,456 $22,259 $
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