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http://www.shareholder.com/drugstore/?trx=2313
March 30, 2004 05:00 PM Eastern Time 

drugstore.com Warns Against the Growing Dangers of Pharmacies Outside U.S.; Consumers Urged to Seek the VIPPS Seal of Approval before Buying Prescriptions Online

BELLEVUE, Wash.--(BUSINESS WIRE)--March 30, 2004--drugstore.com, inc. (Nasdaq:DSCM) the leading online retailer of health, beauty, vision, and pharmacy products, today warned consumers that purchasing prescription drugs over the Internet from unregulated "cross border" pharmacies could seriously increase the risk of receiving counterfeit medicines, incorrect dosages, improperly stored medications, or expired, contaminated or recalled medications. In addition, consumers patronizing overseas pharmacies may be unaware that their private medical information is not protected by the strict HIPAA regulations that govern privacy of both paper-based and electronic medical information in the U.S.

"Rogue Internet drug sellers, which operate offshore, overseas, or through Canada, are illegal and unregulated by U.S. or Canadian authorities," said Peter Neupert, chairman of the board of drugstore.com, inc. "It is extremely difficult for consumers to know who they are dealing with on the Internet today; even sites purporting to be Canadian pharmacies may be actually located in Third World countries. We feel the only safe way to purchase prescription drugs over the Internet is to shop at an online pharmacy certified by the National Association of Boards of Pharmacy(R)'s (NABP(R)) Verified Internet Pharmacy Practice Sites(TM) program (VIPPS(R))."

“But more importantly, I don't want to compromise the safest drug delivery system in the world.”

American consumers bargain hunting for prescriptions from these foreign sources increasingly find that the pharmaceuticals have expired, been diluted or contaminated, or even replaced with counterfeit medications. While HealthCanada regulates many pharmacies in Canada, many "cross border" pharmacies that primarily import drugs for sale to American seniors, are not regulated by either HealthCanada or the FDA. With no regulatory oversight, it is possible that consumers could unknowingly receive their prescription in the wrong dosage or in the worst case, be given the wrong drug entirely.

The FDA has seen a 300 percent increase in counterfeit cases over the past three years, many of which involve well-organized criminal operations that ship finished drug products that resemble legitimate drugs but may contain inactive ingredients, incorrect ingredients, improper doses or be otherwise contaminated.

At a press briefing held at the American Pharmaceutical Association's annual meeting in Seattle this week, Neupert recommended that consumers looking for low cost drugs online shop only at pharmacies certified through the NABP's VIPPS program. VIPPS-certified online pharmacies provide consumers seeking online savings confidence that their orders will be processed by a licensed pharmacy with policies implementing all applicable federal and state regulations.

"VIPPS-certified pharmacies, such as drugstore.com, inc., accept most insurance plans and discount cards, and are a safer alternative than purchasing from Canada or overseas," Neupert stated. "In addition, each patient's private medical information is strictly protected at drugstore.com, inc. through adherence to the HIPAA laws."

VIPPS is a certification program of the National Association of Boards of Pharmacy (NABP). Pharmacies authorized to display the VIPPS Seal on their Web site are in compliance with licensing and inspection requirements of their state and each state to which they dispense pharmaceuticals, as well as with stringent pharmacy practice criteria. Currently, only 14 online pharmacies have earned NABP accreditation. Consumers can find out more about VIPPS certification and confirm their pharmacy's certification by simply clicking on the VIPPS Seal displayed on their pharmacy's Web site.

To date, drugstore.com, inc. has safely dispensed over 2.3 million prescriptions to consumers in all 50 states at discounts ranging from 20 to 30 percent, all the while conforming to all applicable federal, state, and local regulatory controls. Neupert expressed empathy for Americans who have to pay large out-of-pocket costs for drugs, but suggested that a more serious policy discussion about drug development and delivery take place before opening a potential "Pandora's box" of unintended consequences by legalizing importation of drugs.

"I want improvements to the distribution system that brings prescription drugs to people in a less costly and more efficient manner," he said. "But more importantly, I don't want to compromise the safest drug delivery system in the world."

The drugstore.com(TM) (Nasdaq:DSCM) pharmacy was one of the first pharmacies awarded VIPPS certification and is the leading online health, beauty, vision, and pharmacy solution in the world. A full-service, licensed retail pharmacy; the drugstore.com(TM) pharmacy offers private e-mail access to pharmacists, as well as an automated system for informing consumers of recalls or any other issues with products they have purchased on the site.

About drugstore.com, inc.

drugstore.com, inc. (Nasdaq:DSCM) is the leading online health, beauty, vision, and pharmacy solution in the world. The drugstore.com(TM) online store provides a convenient, private, and informative shopping experience that encourages consumers to purchase products essential to healthy, everyday living. The online store offers thousands of brand-name personal health care products at competitive prices; a full-service, licensed retail pharmacy; and a wealth of health-related information, buying guides, and other tools designed to help consumers make informed purchasing decisions. Consumers can personalize their shopping experiences with shopping lists, e-mail reminders for replenishing regularly used products, and private e-mail access to pharmacists and beauty experts for questions.

drugstore.com, inc. has been awarded the Verified Internet Pharmacy Practice Sites (VIPPS) certification by the National Association of Boards of Pharmacy (NABP) as a fully licensed facility exercising competent, safe pharmacy practices in compliance with federal and state laws and regulations.

Contacts

drugstore.com, inc.
Greg French
425-372-3242 (office)
206-406-2838 (cell)
http://www.shareholder.com/drugstore/?trx=2313

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