Broadening the Horizon of Drug Retailing; Bear Stearns Analyst Initiates Coverage of the Retail Drug Sector.

Business Editors

NEW YORK--(BUSINESS WIRE)--February 3, 2000

In a report entitled, &uot;The New Face of Drug Retailing: An Indispensable Part of the U.S. Health Care Delivery,&uot; Bear Stearns analyst, Deborah Weinswig, has initiated coverage of the retail drug sector.

After facing what was reportedly the worst year in recent history for retail drugs, Weinswig's recommendation for investors is to embrace a bullish outlook on the industry. &uot;This is a prime time to take advantage of the current weakness and unusually low stock prices as you can buy the best drugstore names at attractive values,&uot; said Weinswig.

The report predicts the long-term drug retail winners will be the chains that focus on total-healthcare. &uot;When faced with competition like CVS, who recently launched its ProCare specialty-pharmacy concept

-- providing disease management and other added-value services, competitors will be pressured to broaden their role,&uot; explained Weinswig. As drug chains pursue these ventures, the analyst believes the retailers will either establish themselves as intermediaries between the health care sponsor and the consumer, or they will be consumed by the competition.

With the focus on drug retailers capable of creating a niche in the delivery of health care services, Weinswig initiated coverage of CVS Corporation (NYSE:CVS) and Drugstore.com (NASDAQ NM:DSCM) with a Buy rating and Walgreen Co. (NYSE:WAG) with an Attractive rating.

To receive a copy of this report or to speak with Deborah Weinswig, please call 212-272-2276. Press inquiries should be directed to Michelle O'Brien at 212-272-6659.

Founded in 1923, Bear, Stearns &Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). With approximately $22.2 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company's business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers professional and correspondent clearing, including securities lending. Headquartered in New York City, the company has over 10,000 employees located in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, Puerto Rico and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Hong Kong, London, Lugano, Sao Paulo, Shanghai, Singapore and Tokyo. For additional information about Bear Stearns, please visit our Web site at www.bearstearns.com

Any recommendation contained in this report may not be suitable for all investors. Moreover, although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. Bear Stearns may make markets and effect transactions, including transactions contrary to any recommendations herein, or have positions in the securities mentioned herein (or options with respect thereto) and may also have performed investment banking services for the issuers of such securities. In addition, employees of Bear Stearns may have positions and effect transactions in the securities or options of the issuers mentioned herein and may serve as directors of such issuers. Copyright (c) 2000. All rights reserved by Bear, Stearns &Co. Inc.