drugstore.com inc. Achieves GAAP Profitability in the Fourth Quart...(ational purposes only and is ...),Health

is not prepared in accordance with generally accepted accounting

principles. Adjusted EBITDA is defined as earnings before taxes,

depreciation, and amortization of intangible assets and non-cash

marketing expense, adjusted to exclude the impact of stock-based

compensation expense.

SUPPLEMENTAL INFORMATION: Reconciliation of Forecasted Q1 2008

and FY 2008 Net Income (Loss) Range to Forecasted

Q1 2008 and FY 2008 Adjusted EBITDA Range

Range Calculated As: Three Months Ended Twelve Months Ended

March 30, 2008 December 28, 2008

(In thousands, unless

otherwise indicated) Range High Range Low Range High Range Low

Net income (loss) $(2,350) $(2,850) $3,000 $(1,000)

Amortization of

intangible assets 250 250 900 900

Amortization of

non-cash marketing 575 575 2,300 2,300

Stock-based compensation 2,100 2,100 7,300 7,300

Depreciation 2,225 2,225 10,500 10,500

Interest income, net (400) (400) (2,000) (2,000)

Adjusted EBITDA $2,400 $1,900 $22,000 $18,000

drugstore.com, inc.

Consolidated Balance Sheets

(in thousands, except share data)

December 30, December 31,

2007 2006

(unaudited) (audited)

ASSETS

Current assets:

Cash and cash equivalents $18,572 $13,393

Marketable securities 17,677
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