drugstore.com (DSCM) Announces Restructuring of Strategic Partnership with Rite Aid (RAD), Guides Below for Q3 and FY Revenues

September 4, 2008 4:13 PM EDT

drugstore.com, inc. (Nasdaq: DSCM) and Rite Aid Corporation (NYSE: RAD) announced a restructured strategic relationship that includes the launch of a new Rite Aid online store for OTC (over-the counter) products and expands on the two companies' successful long-term relationship.

Under the terms of the agreement, a new Rite Aid online OTC store offering a wide selection of products, including Rite Aid brand items, will be powered by drugstore.com and marketed by Rite Aid to its large customer base. Rite Aid's new online store is expected to launch later this year.

For the third quarter of 2008, drugstore.com is now targeting net sales in the range of $85.0 million to $90.0 million and a net loss in the range of $2.7 million to $3.7 million. Adjusted EBITDA guidance remains in the range of $3.5 million to $4.5 million. For 2008, the company is now targeting net sales in the range of $370 million to $380 million and a net loss in the range of $0.2 million to $4.2 million. (Q3 revenue consensus is $118.88 million and FY revenue consensus is $494.09 million) [SM]

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