FDA Cites Concerns about Vulnerability of Imported Drugs to Terrorist Attack; drugstore.com, inc. Urges Consumers to Patronize VIPPS-Certified U.S. Online Pharmacies

[August 19, 2004]

FDA Cites Concerns about Vulnerability of Imported Drugs to Terrorist Attack; drugstore.com, inc. Urges Consumers to Patronize VIPPS-Certified U.S. Online Pharmacies

BELLEVUE, Wash. --(Business Wire)-- Aug. 19, 2004 -- drugstore.com, inc., (Nasdaq:DSCM), a leading online provider of health, beauty, vision, and pharmacy products, encourages consumers to patronize only U.S.-based online pharmacies certified by the National Boards of Pharmacy's (NABP(R)) Verified Internet Pharmacy Practice Site (VIPPS(R)) program. This recommendation follows a recent Associated Press interview with Food and Drug Administration Commissioner Lester M. Crawford, who said a top concern of the FDA is that drugs imported illegally from Canada and other countries are vulnerable to terrorist attack.

VIPPS-certified pharmacies like the drugstore.com(TM) online pharmacy undergo a rigorous compliance process to ensure they exercise competent, safe pharmacy practices in compliance with federal and state laws and regulations. VIPPS-certified online pharmacies are identified by an official VIPPS logo. As an added safety precaution, consumers should click on the logo to ensure that it links directly to the NABP's Web site for authentication.

"The FDA has always considered personal importation of prescription drugs risky and illegal, and we feel that consumers take significant risks when they order prescription drugs from pharmacies outside the protective umbrella of U.S. federal and state agencies," said Jeff Kimmell, vice president, healthcare services, and chief pharmacy officer of drugstore.com, inc. "The Internet offers a viable, inexpensive, safe option for prescription drug delivery, but only if you patronize a VIPPS-certified, U.S.-based online pharmacy."

drugstore.com, inc. received VIPPS certification from the NABP, a coalition of state pharmacy boards, in 1999. The voluntary VIPPS program sets standards for Internet pharmacies and informs the public of those online pharmacies that are fully licensed and in compliance with state pharmacy laws and the NABP's stringent pharmacy practice standards.

The NABP lists VIPPS-certified online pharmacies on its Web site at www.nabp.net/vipps/consumer/listall.asp. The drugstore.com(TM) pharmacy is one of fourteen U.S.-based online pharmacies currently certified by the VIPPS program.

"More consumers than ever before are turning to the Internet to order prescription drugs, because they can often find better deals than what traditional neighborhood pharmacies offer," said Kimmell. For instance, prices for brand-name drugs at the drugstore.com(TM) online pharmacy are on average 15 percent to 25 percent less than average retail prices. The drugstore.com(TM) pharmacy often offers significantly better prices on generic drugs than its Canadian counterparts. Moreover, in a study of the recently introduced Medicare drug discount cards, the Kaiser Family Foundation found that drugstore.com, inc.'s advertised prices were competitive with those of many cards.

The drugstore.com(TM) online pharmacy has safely dispensed over 2.0 million prescriptions since beginning operations in 1999.

About drugstore.com, inc.

drugstore.com, inc. (Nasdaq:DSCM) is a leading online provider of health, beauty, vision, and pharmacy products. The drugstore.com(TM) online store provides a convenient, private, and informative shopping experience that encourages consumers to purchase products essential to healthy, everyday living. The online store offers thousands of brand-name personal health care products at competitive prices; a full-service, licensed retail pharmacy; and a wealth of health-related information, buying guides, and other tools designed to help consumers make informed purchasing decisions. Consumers can personalize their shopping experiences with shopping lists, e-mail reminders for replenishing regularly used products, and private e-mail access to pharmacists and beauty experts for questions.

drugstore.com, inc. has been awarded the Verified Internet Pharmacy Practice Sites (VIPPS(R)) certification by the National Association of Boards of Pharmacy (NABP) as a fully licensed facility exercising competent, safe pharmacy practices in compliance with federal and state laws and regulations.

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