HEALTH MART FRANCHISE EXPECTS GROWTH

SEPTEMBER 01, 2006

McKesson plans to grow the Health Mart Franchise into the nation's top independent pharmacy network, uniting leading independents under a common brand. The franchise levels the playing field for independent pharmacists by arming its members with the resources and national strength they need to better compete in today's growing competitive marketplace.

Considered a fundamentally unique franchise model that addresses the specific needs of practicing independent pharmacists, Health Mart delivers national strength, protection, and benefits with no sign-up costs or binding commitment. Franchisees pay a low monthly fee, which is not tied to revenue, and they have a 3-month opt-out clause, which can be used at any time without penalty.

From frequent shifts in public policy to growing competition from chain and mail-order pharmacies to a changing patient demographic, independent pharmacies face key challenges that affect their ability to compete and grow. Health Mart helps in the following ways:

•Managed care—Health Mart franchisees benefit from automatic enrollment in Access Health, McKesson's managed care contracting entity, which conducts third-party contracting with pharmacy benefit managers on behalf of pharmacy members

•Branding—Through a national branding and advertising campaign, a consumer Web site, advertising templates and resources for local marketing, and contemporary store signage and décor, the franchisees benefit from increased customer recognition and store traffic

•In-store execution—Health Mart's FrontEdge Merchandiser program helps franchisees reinforce relationships with manufacturers through dedicated resources for front-end store execution, guaranteeing consistent merchandising for product introductions and special promotions

•Community—Health Mart provides an opportunity for franchisees to come together and share best practices, to partner more effectively with industry associations and policy makers, and to gain from continued education opportunities around timely business and clinical topics.



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