Walgreens Prices $1 Billion, 10-Year Bond Offering

DEERFIELD, Ill.--(BUSINESS WIRE)--Walgreen Co. (NYSE:WAG)(NASDAQ:WAG) today announced it has priced an offering of $1 billion aggregate principal amount of 5.25% notes due 2019.

Banc of America Securities LLC, Goldman, Sachs & Co., J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated are acting as joint book-running managers of the offering, and Wells Fargo Securities, LLC and Loop Capital Markets, LLC are acting as co-managers of the offering.

Net proceeds from the offering will be used by Walgreen Co. for repayment of short-term debt incurred under its commercial paper program and general corporate purposes.

The offering is expected to close on Jan. 13, 2009, subject to customary closing conditions.

The offering is being made under an automatic shelf registration statement filed with the Securities and Exchange Commission on July 14, 2008. This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offers of the notes will be made exclusively by means of a prospectus and prospectus supplement.

Copies of the preliminary and final prospectus supplements relating to the offering may be obtained by contacting Banc of America Securities LLC, Prospectus Department, 100 W. 33rd St., 3rd Floor, New York, New York, 10001, email dg.prospectus_distribution@bofasecurities.com; Goldman, Sachs & Co., Prospectus Department, 85 Broad Street, New York, NY 10004, email prospectus-ny@ny.email.gs.com, telephone 1-866-471-2526, facsimile: 212-902-9316; J.P. Morgan Securities Inc., Investment Grade Syndicate Desk, 270 Park Ave., New York, New York, 10017, telephone 212-834-4533, facsimile 212-834-6081 or Morgan Stanley & Co. Incorporated, 180 Varick Street, New York, New York 10014, Attention: Prospectus Department, telephone 866-718-1649.

Walgreens (www.walgreens.com) operates 6,636 drugstores in 49 states, the District of Columbia and Puerto Rico. Walgreens provides the most convenient access to consumer goods and services and cost-effective pharmacy, health and wellness services in America through its retail drugstores, Walgreens Health Services division and Walgreens Health and Wellness division. Walgreens Health Services assists pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager), Walgreens Mail Service Inc., Walgreens Home Care Inc., Walgreens Specialty Pharmacy LLC and SeniorMed LLC (a pharmacy provider to long-term care facilities). Walgreens Health and Wellness division includes Take Care Health Systems, the largest and most comprehensive provider of worksite health and wellness centers and in-store convenient care clinics, with nearly 700 locations throughout the country.