HEALTH MART FRANCHISE EXPECTS GROWTH

McKesson plans to grow the Health MartFranchise into the nation's top independentpharmacy network, uniting leading independentsunder a common brand. The franchiselevels the playing field for independent pharmacistsby arming its members with theresources and national strength they need tobetter compete in today's growing competitivemarketplace.

Considered a fundamentally unique franchisemodel that addresses the specific needs of practicingindependent pharmacists, Health Martdelivers national strength, protection, and benefitswith no sign-up costs or binding commitment.Franchisees pay a low monthly fee, whichis not tied to revenue, and they have a 3-monthopt-out clause, which can be used at any timewithout penalty.

From frequent shifts in public policy to growingcompetition from chain and mail-order pharmaciesto a changing patient demographic, independentpharmacies face key challenges thataffect their ability to compete and grow. HealthMart helps in the following ways:

•Managed care—Health Mart franchiseesbenefit from automatic enrollment in AccessHealth, McKesson's managed care contractingentity, which conducts third-party contractingwith pharmacy benefit managers onbehalf of pharmacy members

•Branding—Through a national brandingand advertising campaign, a consumerWeb site, advertising templates andresources for local marketing, and contemporarystore signage and décor, the franchiseesbenefit from increased customerrecognition and store traffic

•In-store execution—Health Mart's FrontEdgeMerchandiser program helps franchisees reinforcerelationships with manufacturersthrough dedicated resources for front-endstore execution, guaranteeing consistent merchandisingfor product introductions and specialpromotions

•Community—Health Mart provides anopportunity for franchisees to cometogether and share best practices, to partnermore effectively with industry associationsand policy makers, and to gain fromcontinued education opportunities aroundtimely business and clinical topics.