CVS Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's leading pharmaceutical services companies with the country’s largest pharmacy chain. The company fills or manages more than one billion prescriptions per year, more than any other pharmacy services provider. CVS Caremark drives value for pharmacy services customers by effectively managing pharmaceutical costs and improving healthcare outcomes through its 6,200 CVS/pharmacy stores; its pharmacy benefit management, mail order and specialty pharmacy division, Caremark Pharmacy Services; its retail-based health clinic subsidiary, MinuteClinic; and its online pharmacy, CVS.com.

Today's healthcare delivery system is rapidly changing. Healthcare is becoming more consumer-centric as the U.S. healthcare system strains to manage growing costs and employers shift more responsibility for managing costs to employees. An aging population, increasing incidence of chronic disease and increasing utilization of the Medicare drug benefit is fueling demand for prescriptions and pharmacy services. Cost-effective generic drugs are becoming more widely available and new drug therapies to treat unmet healthcare needs and reduce hospital stays are being introduced. Consumers need medication management programs and better information to help them get the most out of their healthcare dollars. CVS Caremark is uniquely positioned to provide solutions that address these trends and will greatly improve the pharmacy services experience for consumers.

CVS Caremark strives to improve clinical outcomes, resulting in better control over healthcare costs for employers and health plans. CVS Caremark also is well positioned to offer broader disease management, health assessment and wellness services to help plan participants manage and protect against potential health risks and avoid future health costs.

CVS/pharmacy

CVS/pharmacy is the nation's largest retail pharmacy chain, with approximately 6,200 stores across 38 states. With more than 40 years of dynamic growth in the retail pharmacy industry, CVS/pharmacy generates over 68% of its revenue from the pharmacy business and is committed to providing superior customer service - to being the easiest pharmacy retailer for customers to use. CVS/pharmacy fills more than one of every seven retail prescriptions in America, and one of every five in our own markets. What's more, our ExtraCare program boasts over 50 million cardholders, making it the largest and most successful retail loyalty program in the country.

CVS/pharmacy is making investments in new stores and technology to drive strong future growth - both organically and through acquisition. In 2005, we completed the successful integration of over 1,200 Eckerd drugstores, primarily in the higher growth Sunbelt markets of Florida and Texas. This year we completed another successful integration as 700 Sav-on and Osco drugstores, the bulk of which are in the population-rich southern California markets, all became CVS/pharmacy stores. These acquisitions, combined with our organic growth of between 3% and 4% per year, are the fuel that will propel CVS/pharmacy's growth in the future.

Caremark Pharmacy Services

Caremark, one of the nation's leading pharmacy benefit management (PBM) companies, provides comprehensive prescription benefit management services to over 2,000 health plans, including corporations, managed care organizations, insurance companies, unions and government entities. With net revenue of approximately $37 billion (including approximately $5.8 billion of retail copayments) in 2006, we are also one of the largest PBMs.

Caremark's customers are primarily sponsors of health benefit plans (employers, unions, government employee groups, insurance companies and managed care organizations) and individuals located throughout the United States. We dispense pharmaceuticals to eligible participants in benefit plans maintained by our customers and utilize our information systems to perform safety checks, drug interaction screening and generic substitution. In addition, we are a national provider of drug benefits to eligible beneficiaries under the federal government's Medicare Part D program. Our SilverScript subsidiary is one of the top ten Prescription Drug Plans (PDP) serving beneficiaries of Medicare Part D in the country. Additionally, Prescription Pathways, a joint venture with Universal American Financial Corp., is also one of the top ten PDPs in the country.

Caremark operates a national retail pharmacy network with over 60,000 participating pharmacies, as well as 11 mail service pharmacies. Its call centers have been recognized for customer satisfaction excellence by J.D. Power & Associates. Caremark operates over 70 specialty pharmacies, and its specialty pharmacies have been accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO). Its disease management programs through Accordant(R) have also been accredited by the National Committee for Quality Assurance.

Summary

The recent completion of the landmark merger of CVS and Caremark enables us to begin delivering substantial benefits to our shareholders, customers and employees. CVS Caremark will offer end-to-end services, from plan design to prescription fulfillment, as well as the opportunity to improve clinical outcomes, which will result in better control over healthcare costs for employers and plan providers. We will improve the delivery of pharmacy services and healthcare decision-making, enabling consumers to benefit from unparalleled access, greater convenience and more choice. And together we will deliver unique products and services that are responsive to the needs of employers, health plans and consumers, and do it in more convenient and flexible ways that allows consumers to take more control of their healthcare needs.