March 09

March 2009

Dear CVS/pharmacy colleagues,

This is an exciting time for our company as the conversion of Longs Drug Stores to CVS/pharmacy systems begins this month. We also will be deploying our new pharmacy computer system, RxConnect, to the newly converted stores for the first time following the system's successful pilot last fall, representing a win not only for our Longs colleagues, but also for the remainder of the chains, which will receive the application later this year.

During the conversions, Longs stores will receive all new pharmacy equipment and hardware and will be introduced to critical CVS/pharmacy processes, such as AIMRx, PSI Workflow, and Waiting Bin. More than 600 trainers-comprised of CVS pharmacists, training store managers, store managers, assistant store managers, pharmacy trainers, and pharmacy technicians?are working side-by-side with Longs colleagues during the next few months to ensure a smooth conversion to CVS/pharmacy systems as they go live.

The Longs integration represents tremendous possibilities for us as we solidify our market share in southern California and enter markets in northern California and Hawaii. With the new technology and systems in place, we have the opportunity for improving pharmacy services and efficiency, which will lead to increased store performance in terms of prescriptions, sales, and margin.

In addition, we have acquired Longs' subsidiary, RxAmerica, which offers PBM services to more than 8 million people and prescription drug plan benefits to approximately 450,000 Medicare beneficiaries.

Please join me in welcoming our newest colleagues to CVS/pharmacy. A great deal of preparation and planning has taken place thus far, and I want to thank all those involved. Let us build on our past successes and continue to deliver the outstanding service our customers have come to expect.

Sincerely,

David W. Purdy, RPh

Vice President, Pharmacy Operations

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