Longs Drug Stores

The Longs Drug Stores tradition of caring began in 1938 when brothers Joe and Tom Long opened the first Longs store and helped institute the idea of self-service in the retail drug industry. Low prices, excellent service brought quick success to the first Longs Drug Store. Chairman, President and Chief Executive Officer Warren Bryant carries on the business beliefs and tradition that Joe and Tom Long established with their first store.

Longs Drug Stores is a publicly traded company having a good stock performance result. Longs Drug Stores is a fortune 500 stock listed company trading under LDG.

Longs Drug Stores is their one of the most recognized retail drug store chains on the West Coast and in Hawaii. Through more than 470 stores in California, Hawaii, Washington, Nevada, Colorado and Oregon, Longs serves the health and well-being needs of consumers with customer-oriented pharmacy services and convenient product offerings that include over-the-counter medications, photo and cosmetics.

The Company generated 203.1 million dollars in net cash provided by operating activities during Fiscal 2006 compared with 181.3 million dollars during last year. The 12 percent improvement over last year was primarily the result of improved operating performance.

Longs Drug Stores repurchased approximately 380,000 shares of its common stock during the fourth quarter at an average price of 38.26 dollars per share and a total investment of approximately 14.5 million dollars. During Fiscal 2006, the Company repurchased approximately 1.4 million shares at an average price of 38.79 dollars per share.

Total revenues of 1.24 billion dollars for the 13 weeks ended January 26, 2006, were 3.8 percent higher than the 1.20 billion dollars reported in the comparable period last year. Retail drug store sales increased 2.4 percent and same- store sales increased 2.0 percent, with pharmacy same-store sales increasing 5.2 percent and front-end same-store sales decreasing 0.7 percent compared with last year. Pharmacy sales were 47.1 percent of retail drug store sales during the period, compared with 45.7 percent a year ago.

Their customers are their first responsibility and will treat them with the same dignity and respect that they themselves expect. They will provide their shareholders with superior financial returns over the long term, frequently reinvesting in the company while maintaining reserves for adverse times. Only by achieving superior financial results will they be able to best serve their customers and reward their employees and shareholders.