HIGHER GENERIC DRUG SALES CREDITED FOR MEDCO PROFIT SURGE

Officials at Medco Health Solutions credited a record-highgeneric-drug dispensing rate for a strong upsurge in the company?sprofitability. Medco?s total gross margin of 6.4%increased 0.9 percentage points, compared with the 5.5%reported in the second quarter of 2006. This higher grossmargin is ?substantially attributable to a record generic-dispensingrate of 58.9%,? company officials said. The recordhighgeneric-dispensing rate?a 5-point gain over the previousquarter?reduced Medco?s gross sales volume buthelped to boost the company?s earnings by 22%.