McKesson Corporation to Redeem Its 5% Trust Convertible Preferred Securities

SAN FRANCISCO--(BUSINESS WIRE)--May 23, 2005--McKesson Corporation (NYSE:MCK) announced today that it will redeem all $206,168,500 of its outstanding 5% Convertible Junior Subordinated Debentures due June 1, 2027, which are held by its wholly owned trust subsidiary, McKesson Financing Trust.

The proceeds will be applied by McKesson Financing Trust to simultaneously redeem all 3,999,650 of the outstanding 5% Trust Convertible Preferred Securities (CUSIP 58155P 50 1) at a price of $50.50 per security and all 123,720 of the outstanding 5% Convertible Common Securities at a price of $50.50 per security. In addition, any unpaid accumulated distributions to, but excluding, June 22, 2005 will be paid on the Preferred Securities and the Common Securities. The redemption date is June 22, 2005.

On or before June 21, 2005, the Preferred Securities may be converted into the common stock of McKesson Corporation at a price of $37.26 per security.

The paying agent for the redemption and the conversion agent of the Preferred Securities is:

            J.P. Morgan Trust Company, National Association
                  227 West Monroe Street, Suite 2600
                           Chicago, IL 60606
                            (800) 275 2048

About McKesson

McKesson Corporation (NYSE:MCK) is a Fortune 15 healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes and improving the quality and safety of patient care. Over the course of its 172-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information, visit us at www.mckesson.com.