Medcohealth.com, the World's Largest Online Pharmacy Accelerates Growth, Reaches $1.4 Billion in Sales for 2002.

Business Editors/Health/Medical Writers

FRANKLIN LAKES, N.J.--(BUSINESS WIRE)--March 5, 2003

Medcohealth.com (NYSE:MRK)

As the Online Pharmacy Industry Grows, Medco Health

Stays One Step Ahead with Redesign that Offers

Enhanced Tools for Managing Pharmacy Benefits Online

Medcohealth.com, the world's largest online pharmacy, reached $1.4 billion in sales in 2002, representing a 51 percent growth in its online business over 2001, Medco Health Solutions, Inc. announced today.

The milestone demonstrates the success of the company's industry-leading e-commerce strategy designed specifically to streamline the management and delivery of prescription and healthcare services via the Internet to its clients' plan members, which collectively total 64 million people, or one in four Americans.

In 2002, medcohealth.com processed nearly 11 million prescriptions and currently processes more than 260,000 prescriptions a week. Since most prescriptions are for 90 days of medication, actual volume dispensed through the website is equivalent to more than 700,000 retail prescriptions per week. In fact, Medco Health processes more home delivery prescriptions through its automated capabilities alone (medcohealth.com and automated voice response) than each of the three other largest pharmacy benefit managers (PBM's) process altogether. In addition, according to comScore Media Metrix Data, Medcohealth.com claims more unique site visitors per month than the three other largest PBM's websites combined.

"Our success to date validates the viability of online pharmacy, and reinforces the theory behind our e-commerce strategy - to simplify the online pharmacy experience for the benefit of our clients and the health of our clients' plan members," said Stephen Gold, senior vice president, Electronic Commerce Strategy and Delivery, Medco Health. "As our online pharmacy continues to grow, and as membership increases, it is our responsibility to continue to develop new capabilities to make the management of medications within the context of the health plan faster, safer and even more cost-effective for clients and their plan members."

The Best Gets Better

The company applies continuous learnings to enhance the online experience for its clients' plan members. Medco Health has recently redesigned the website to make it even more convenient for members to manage their pharmacy benefit, order their prescription and over-the-counter drugs, and get medication and treatment information online.

The redesign was predicated on detailed feedback from Medco Health's clients and consumers, extensive usability testing, and unique persona-based research. The result is a website with numerous enhancements, including simpler navigation tools; a streamlined ordering process; a cleaner user interface with 30 percent larger "targets" such as links, text, and buttons; simplified language; and minimized graphics using file compression to reduce download times for users. Medcohealth.com features easily identifiable tabs to access the website's online tools. Plan members can now better manage their prescriptions in the "Prescription & benefits" section, and manage their overall health in the "Health & wellness" section.

To meet the needs of plan members who have visual or motor skills impairment, Medco Health embraces best practices in web accessibility. The redesign includes the addition of descriptive roll-over text that helps screen readers dictate on-screen items to the visually impaired, and eliminates click-and-drag tasks that may be counterproductive for people with limited dexterity due to arthritis or other medical conditions.

"Because many of our clients' plan members may have medical problems and physical limitations, it is important that we develop website enhancements that make their online experience more enjoyable and productive," said Vicente Caride, senior director, E-Commerce Strategy and Delivery, Medco Health. "We feel our redesign has succeeded on both counts. We made a great website even better."

An Eye On Boomers and Seniors

According to a 2002 Yanklovich Partners study, 61 percent of baby boomers log onto the internet daily. In addition, Jupiter Media Metrix data estimates that more than six million seniors (65 and older) went online in 2002 and projects that in 2003 that number will grow to more than seven million. Medcohealth.com currently attracts the highest percentage of internet users age 55 or older among e-commerce websites, according to Jupiter. In fact, approximately 60 percent of medcohealth.com's three million registered users are over the age of 50.

"The average age of our current registered user is 54, and as baby boomers enter the high drug utilization category, we expect the number of seniors using medcohealth.com to increase," said Caride. "However, while the website is particularly accessible for seniors, all of our clients' plan members will benefit from the enhancements we have made."

Managing Medications

Medco Health provides its clients' plan members with access to a number of web-based prescription services, including the ability to order, refill, or request new prescriptions; price and compare brand-name and generic medications based on their individual health plan's provisions; review personalized pharmacy benefit plan highlights including a list of drugs that are covered; and move from retail dispensing to home delivery, which can save members significantly on their annual prescription expenses. With its "for your doctor visit" tool, medcohealth.com also provides plan members with a complete prescription history in a printable report that can be shared with their physicians. This helpful kit features the guidelines of their specific pharmacy plan including preferred medications and an 18-month prescription history, a valuable service for members who see multiple physicians or use multiple pharmacies.

Other useful functions include a prescription expense summary that can be used for submission to a flexible spending account; an "Ask the pharmacist" feature that results in a personalized phone call (when warranted) from a Medco Health pharmacist within 24 hours of sending a question via e-mail; and a retail pharmacy locator that provides location, contact information and turn-by-turn driving directions to any of the 58,000 retail pharmacies in Medco Health's network in case of a medical emergency.

Managing Health

Managing medications through medcohealth.com is only one way Medco Health helps clients' plan members to live life well. The website includes a feature called "Health alerts," which offers personalized health and wellness information pertaining to a plan member's specific medical condition and tips for managing their medication therapy. In addition, users can easily access a vast library of medication resources to research medication uses, side effects and drug interactions. Plan members are also empowered with a "Health toolbox," which features completely secure health risk assessment tools and "MyHealth Journal," a tool to track and manage daily health activities.

Non-members can use medcohealth.com to access up-to-date information on a variety of health topics or use the website's vast library of prescription drug content, including medication uses, side effects, and drug interactions.

"We have created a front-end system that both simplifies the increasingly sophisticated world of prescription healthcare and offers effective integration with our industry-leading back-end distribution channels," said Gold. "From mouse click to mailbag, we have significantly streamlined the process for providing prescription medications to our members."

Medcohealth.com bears the VIPPS(TM) seal as verification by the National Association of Boards of Pharmacy (NABP) for having met the stringent criteria to become a Verified Internet Pharmacy Practice Site. Medco Health was the first online pharmacy to be so recognized by the NABP.

Medco Health has earned the No. 1 rating as top pharmacy benefits manager in customer satisfaction for the last four years by J.D. Powers and Associates. In addition, according to independently collected research results from both the 2001 and 2002 WilsonRx Pharmacy Benefit Satisfaction Reports released by Wilson Health Information, Medco Health was rated No. 1 in member satisfaction for excellence in home delivery pharmacy, 24-hour pharmacy access and useful website services provided through medcohealth.com.

About Medco Health

Medco Health Solutions, Inc. is the nation's leading provider of prescription healthcare services based on the $33 billion in drug spend the company managed for its clients in 2002. Formerly known as Merck-Medco, Medco Health is a wholly owned and independently managed subsidiary of Merck & Co., Inc. (NYSE:MRK), and assists its clients to moderate the cost and enhance the quality of prescription drug benefits provided to 64 million Americans nationwide.