Walgreen Co. Completes Acquisition of Specialty Pharmacy Business from McKesson Corporation

Walgreen Co. (NYSE: WAG)(NASDAQ: WAG) has completed its acquisition of McKesson Corporation’s (NYSE: MCK) specialty pharmacy, a business within McKesson’s Specialty division. The acquisition includes McKesson Specialty Pharmacy in Pittsburgh and IVPCARE, a specialty pharmacy focused on reproductive health based in Frisco, Texas, with operations in Torrance, Calif., Wilmington, Mass. and St. Louis.

Michael A. Nameth, executive vice president of Walgreens Health Services, said, "This acquisition further expands our national capabilities and access to managed care payors. Together we will be able to provide the highest level of quality and customer service for the patients and clients we serve.”

Walgreens Specialty Pharmacy LLC., a wholly-owned subsidiary of Walgreen Co. operated by its managed care division, Walgreens Health Services, is a national provider of injectable and biopharmaceutical medications dedicated to serving the needs of patients living with complex, chronic health and medical conditions. Walgreens Specialty Pharmacy provides personalized care and services through dedicated fulfillment centers across the country and more than 6,500 electronically linked Walgreens pharmacies, including locations in academic medical centers, community hospitals and physician office buildings. Walgreens Specialty Pharmacy assists patients in obtaining medications, coordinates insurance benefits and provides individualized therapy management and clinical support.

Walgreens (www.walgreens.com) is the nation’s largest drugstore chain with fiscal 2008 sales of $59 billion. The company operates 6,544 drugstores in 49 states, the District of Columbia and Puerto Rico. Walgreens provides the most convenient access to consumer goods and cost-effective health care services in America through its retail drugstores, Walgreens Health Services division and Walgreens Health and Wellness division. Walgreens Health Services assists pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager), Walgreens Mail Service Inc., Walgreens Home Care Inc., Walgreens Specialty Pharmacy LLC and SeniorMed LLC (a pharmacy provider to long-term care facilities). Walgreens Health and Wellness division includes Take Care Health Systems, which is comprised of: Take Care Consumer Solutions, managers of 273 convenient care clinics at Walgreens drugstores, and Take Care Employer Solutions, managers of worksite-based health and wellness services at more than 366 employer campuses.

This news release may contain forward-looking statements that involve risks and uncertainties. The following factors could cause results to differ materially from management expectations as projected in such forward-looking statements: seasonal variations, competition, risks of new business areas, the availability and cost of real estate and construction, and changes in federal or state legislation or regulations. Investors are referred to the "Cautionary Note Regarding Forward-Looking Statements" in the Company’s most recent Form 10-K, which Note is incorporated into this news release by reference. In addition, there are certain risks and uncertainties relating to the proposed transaction that may impact forward-looking statements, including, but not limited to, consummation of the proposed transaction, satisfaction of the conditions to closing the proposed transaction, the ability to realize the anticipated benefits and cost synergies and the performance of Walgreens following consummation of the proposed transaction.