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Press Releases Friday, July 20, 2001   
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drugstore.com Breaks Two Million Customer Milestone

BELLEVUE, Wash.--July 20, 2001-- When Terri Kilshaw logged onto the drugstore.com website to place her order, little did she know she was about to become a significant marker in the life of drugstore.com.

drugstore.com , inc. (Nasdaq:DSCM), the leading Internet retailer for health, beauty, wellness and pharmacy products, recently served its two millionth customer, and reached the milestone faster than any other e-commerce retailer.

Reporting 2000 sales of $110 million and Q1 2001 sales growth of 44 percent, the company continues to increase its gross margins and lower operating costs despite tough external markets.

"Today`s 2 million customer announcement proves drugstore.com is not only surviving, but thriving," said Kal Raman, president and CEO of drugstore.com, inc. "This milestone further validates that drugstore.com is a growing business that consumers value."

In celebration, drugstore.com, inc. surprised its 2 millionth customer, Massachusetts` Terri Kilshaw, with a fluffy white robe and a basket of drugstore.com(tm) health and wellness products. In addition, drugstore.com, inc. has arranged a day of pampering and wellness for Terri, including a visit to Giuliano`s Day Spa, and a limousine ride to and from her appointment. Giuliano`s Day Spa was voted "Best Day Spa" by Boston Magazine and Top Salon by Salon Today Magazine. More information can be found at http://www.giulianodayspa.com.

Added Raman, "Our unrelenting focus on meeting the wants and needs of consumers has led to an unmatched shopping experience for millions of satisfied customers."

The drugstore.com webstore continues to attract new customers daily by adding hard-to-find product lines such as the dermatologist recommended skin care products in the Clinical Skin Solutions(tm) store and the newly launched Sexual Well-being store. Also, by developing innovative services like the eMedAlert(tm) program and the consumer-friendly drug interaction checker, the drugstore.com online webstore is providing services above and beyond your average pharmacy.

drugstore.com, inc. (Nasdaq:DSCM) is the leading online drugstore and information site offering A Very Healthy Way to Shop(TM) for health, beauty, wellness, personal care, 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 Web 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 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 the best safe pharmacy practices in compliance with federal and state laws and regulations. drugstore.com has also been rated the top health category site by Forrester PowerRankings, which provides objective rankings of the leading e-commerce sites.

drugstore.com has formed strategic relationships with Amazon.com (Nasdaq:AMZN), Rite Aid Corporation (NYSE, PSE:RAD), WellPoint Health Networks Inc. (NYSE:WLP) and General Nutrition Companies, Inc. (Nasdaq:GNCI).

CONTACT:
drugstore.com
Jenny Bendel/Kristine Jimenez
425/372-3200
jbendel@drugstore.com
kjimenez@drugstore.com

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