Drugstore.com Launches Free Digital Photo and Video Sharing for Customers

Business Wire, May 9, 2007

Smilebox Service Expands Photo and Video Category

BELLEVUE, Wash. -- drugstore.com, inc. (NASDAQ:DSCM), a leading online provider of health, beauty, vision, and pharmacy products, today announced the expansion of its photo and video category with the availability of an innovative, easy-to-use digital service that allows customers to share stories and greetings through photos, videos and music. The company partnered with Smilebox, Inc., to launch the free, co-branded service.

"As online photo and video sharing continues to grow in adoption and usage, drugstore.com wants to provide customers with a new generation of digital service," said David Lonczak, vice president and Chief Marketing Officer, drugstore.com. "Smilebox makes it quick and easy to produce multimedia greetings, and we believe the video option will be especially attractive to the more than 3 million unique users who visit drugstore.com every month."

To begin using the drugstore.com Smilebox service, customers will need to download a light desktop application, which is free of charge. They can then choose from more than 400 professionally designed templates and drag and drop digital photos and videos stored on their computer to create greetings, stories, slideshows, scrapbooks and postcards. These multimedia creations can be emailed, printed, or posted to a website or blog for sharing with family and friends.

Pricing and Availability

The drugstore.com Smilebox service is available today by going to the www.drugstore.com home page and clicking the "Photo & Video" store tab at the top of the page, or by going to http://www.drugstore.com/photo.> There are three levels of pricing:

* Basic - Customers can email the basic version of any design to family and friends free of charge.

* Premium - Purchase the premium version of most templates for a one-time fee of $1.99. The one-time fee for scrapbook templates is $2.99. The premium design version allows customers to choose from hundreds of music options, print keepsakes and play their Smilebox on a full screen.

* Club Membership - Subscribe to Club Smilebox for $4.99 a month or $39.99 a year and get unlimited use of all premium designs and features.

On www.drugstore.com, customers can choose from a broad selection of more than 30,000 over-the-counter products and have the advantage of shopping 24 hours a day, seven days a week from the comfort and privacy of their own homes with the benefit of home delivery. They may also enjoy many convenient features such as Auto Delivery for automatic delivery of items every 30, 45, 60, 90 or 180 days; Your List, which reminds customers what items they have previously purchased; and the FSA Store (flexible spending account) with more than 3,000 eligible products, FSA-specific receipts for easy reimbursement, or FSA debit cards for automatic reimbursement. The FSA store features shopping guides, product comparisons, informative articles, and additional product content.

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 (www.drugstore.com) 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 for questions.

drugstore.com, inc. has been awarded the Verified Internet Pharmacy Practice Sites (VIPPS) 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.