Longs Drug Stores Corp
Industry: Retail (Drugs)

Longs Drug Stores Corporation (NYSE:LDG) is one of the leading drug store chains in North America, with annual sales per store averaging approximately $10 million. Founded in 1938, Longs today operates 437 stores in California, Hawaii, Washington, Nevada, Colorado and Oregon. Longs focuses on meeting the specific health and well being needs of its communities with superior pharmacy service and convenient product offerings that include over the counter medications, photo and cosmetics. On-line prescription services, merchandise and health information are available at www.longs.com, and recently acquired RxAmerica provides pharmacy benefit management services for a growing list of clients.

Business Summary
Longs Drug Stores Corporation (Longs) operates in two business segments, retail drug stores and, through its RxAmerica subsidiary, pharmacy benefit management (PBM). Through the retail drug store segment, the Company operates a retail drug store chain on the West Coast of the United States and in Hawaii, with 472 stores in California, Colorado, Hawaii, Nevada, Washington and Oregon, and one mail order pharmacy during the year ended January 27, 2005 (fiscal 2004). The PBM segment provides a range of services, including plan design and implementation, claims administration and formulary management to third-party health plans and other organizations.

Financial Summary
Longs Drug Stores Corp. is a drug store chain with stores in CA, HI, NV, WA, OR and CO. LDG operated 455 stores as of 1/03. For the 26 weeks ended 7/28/05, sales fell less than 1% to $2.31B. Net income totaled $29.6M, up from $12.6M. Revenues reflect decreased same store sales. Net income reflects an increased gross profit due to a more profitable merhandise mix through better buying, improved inventory management and increased utilization.