1. John Spina - Treasurer

2. Safe Harbor Language
Certain statements and projections of future
results made in this presentation constitute
forward looking information that is based on
current market, competitive, and regulatory
expectations that involve risks and uncertainties.
Please see our Form 10K for a discussion of
factors as they relate to forward looking
statements dated August 31, 2007.
2

3. 1Q08 and FY07 Results
1Q08
• Sales up 10.4% to $14.0 billion
• Earnings up 5.5% to $455.5 million
FY07
• Sales up 13.4% to $53.8 billion
• Earnings up 16.6% to $2.0 billion
3

4. GP$ and SG&A$ Growth (%YOY)
25.0%
20.0%
16.7%
SG&A*
15.0%
14.3%
Gross Profit
10.0%
5.0%
1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08
*Adjusted for Hurricane Katrina in 4Q05
4
Source: Company Data

5. 33 Years of Record Sales and Earnings
$60,000 $2,500
Sales CAGR: 12.8%
Earnings CAGR: 18.5%
Stock CAGR: 21.1%
$50,000
$2,000
$40,000
$1,500
$30,000
$1,000
$20,000
$500
$10,000
$0 $0
2000-2001
1980-1982 1990-1991
5
Source: Company Data

6. Sales, Comp, and Earnings Trends
FY03 FY04 FY05 FY06 FY07
Sales 13.3% 15.4% 12.5% 12.3% 13.4%
Rx Comp 13.2% 14.0% 9.8% 9.2% 9.5%
Script Comp 6.4% 7.3% 6.7% 4.5% 5.7%
FE Comp 1.7% 6.1% 5.5% 5.3% 5.8%
Earnings 15.6% 15.9% 15.5% 12.3% 16.6%
*Options expensed beginning in FY06
6
Source: Company Data

7. Rx Comp Sales
(Percent Increase)
6.0%
4.0%
2.0%
0.0%
Dec. Jan.
Nov. Feb.
WAG CVS RAD
Source: Walgreens, CVS and Rite Aid Press Releases 7

8. Flu Trend
45
40 2006 - 2007
35
30 2007 - 2008
25
20
15
10
5
0
S O N D J F M A M J J A
8
Source: SDI FAN

9. Filling More Scripts
Efficiently & Profitably
Prescriptions Per Day by Channel
300
250
200
150
100
50
0
Ind. Mass Food Chain WAG
w/o
WAG
Source: IMS Health (Data based on Calendar 2007 ) 9

10. Outperforming Other Retailers
Pre-tax Earnings per Selling Square Foot
$60
$50
$40
$30
$20
$10
$0
Food Chain w/o Wal-Mart WAG
WAG
Source: SEC Filings 10

11. A Bigger Piece of a Bigger Pie
Number of Scripts Filled by Community Pharmacies and Mail
Mail
Mail WAG
5% WAG 7% 16%
11% Food
Food
14%
14%
Mass
Chain Mass Chain
10%
w/o WAG 11%
w/o WAG
36%
31%
Independent
Independent
23%
21%
2001 – 3.0 Billion 2006 – 3.4 Billion
Source: NACDS and IMS 11

12. Growing Rx Marketshare
45.0%
42.2% Chain/Mass w/o WAG
41.6% 41.4% 41.2% 40.7%
Chain/Mass w/o WAG
40.0%
35.0%
30.0%
-50 Bps
25.0% Independents
+80 Bps
24.1%
23.7% 23.1% 22.8% 22.7%
20.0%
Walgreens
15.5%
14.7%
14.8%
14.4%
15.0% 16.3%
13.8% 13.9% 13.7% 13.3%
13.0% Food Stores
WAG
10.0%
Mail
6.9% 6.7%
6.5%
5.9%
7.0%
5.0%
4
4
4
4
5
5
5
5
6
6
6
6
7
7
7
7
8
8
8
8
10
20
30
40
10
20
30
40
10
20
30
40
10
20
30
40
10
20
30
40
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
12
Source: IMS and Company Data

13. The Boomer Wave is Rolling to Shore
Population in Millions, by Age Range
Drug Spend per Year
25
$887
20
15
$612
10
$298
5
$97
0
Under 25 25-45 45-65 Over 65
13
Source: U.S. Census Bureau and BLS

14. Population Growth
2006 2020
65+ Population 37,260 54,632
(in millions)
% of Total Population 12.4% 16.3%
Growth - 46.6%
14
Source: U.S. Census Bureau

15. Front-End Comp Sales
(Percent Increase)
6.0%
4.0%
2.0%
0.0%
-2.0%
Jan.
Nov. Feb.
Dec.
WAG CVS RAD
Source: Walgreens, CVS and Rite Aid Press Releases 15

16. Front End Comp % Increase(Decrease)
-5.0%
0.0%
5.0%
10.0%
15.0%
Source: Company Data
Mar/Apr-03
Jul-03
Oct-03
Jan-04
May-04
Aug-04
Nov-04
Feb-05
16
Jun-05
Sep-05
Dec-05
Mar/Apr-06
Jul-06
Front End Comp Sales
Oct-06
Jan-07
May-07
Aug-07
Nov-07
Feb-08

17. Growing Marketshare in
the Front of the Store
% Increase in Our Top 60 Categories
8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.0
0.0
Food Drug Mass WMT WAG
2 Weeks Ending 1/26/08
17
Source: ACNielsen

18. Growing Marketshare in
the Front of the Store
% Increase in Our Top 60 Categories
8.0
6.0
4.0
2.0
0.0
-2.0
-4.0
Food Drug Mass WMT WAG
w/o WAG
2 Weeks Ending 1/26/08
18
Source: ACNielsen

19. Private Label: Goal of 20%
19

20. From Any Home,
To Any Walgreens…
…To Any Home!
20

21. Ski Vacation
21

22. Printer Cartridge Refills
• 3,000 stores
• Drop off at photo counter
• Up to 60% cheaper than new
cartridges
• 100% satisfaction guarantee
• Environmentally friendly
Source: Company Data 22

23. Leveraging Our Front-end
23

24. A Decade of Transition
1997 2007
• Freestanding Stores 1,036 5,058
• 24-Hour Pharmacies 427 1,648
• One Hour Photo 1,438 5,709
• Drive-thru Rx 880 5,016
2,358
• Total Stores 5,997
24
Source: Company Data

25. The Best Corners in America
We Will Control Our
Corners for Over 50 Years!
25

26. Store Growth
Store Count - WAG vs. Our Competitors
CVS
6,500 6,245
6,237
6,000
WAG
5,500
5,054
5,000
RAD
4,500
4,000
3,500
3,000 Eckerd
2,500 Jean Coutu
2,000
1,500
Oct-99
Jun-00
Oct-00
Jun-01
Oct-01
Jun-02
Oct-02
Jun-03
Oct-03
Jun-04
Oct-04
Jun-05
Oct-05
Jun-06
Oct-06
Jun-07
Oct-07
Feb-00
Feb-01
Feb-02
Feb-03
Feb-04
Feb-05
Feb-06
Feb-07
Feb-08
26
Sources: Walgreens, CVS, Rite Aid, Eckerd and Jean Coutu Press Releases

27. Growth of Community
Pharmacy by Channel
% Change, Number of Pharmacies, 2001–2006
56,948 17,482
10,163 5,586
7,438
21,865
50%
40%
30%
20%
10%
0%
-10%
Chain Ind.
Mass
Total Food WAG
27
Source: NACDS

28. Growth of Community
Pharmacy by Channel
% Change, Number of Pharmacies, 2001–2006
56,948 17,482
10,163 5,586
7,438
16,279
50%
40%
Fortune (September, 1935):
30%
“There are 58,400 drug stores in
20% the U.S.”
10%
0%
-10%
Chain Ind.
Mass
Total Food WAG
w/o WAG
28
Source: NACDS

29. Where We Are Number One (121 Markets)
Abilene, TX Little Rock, AR Rockford, IL
Fort Collins, CO
Albuquerque, NM Louisville, KY Salt Lake City, UT
Fort Lauderdale, FL
Amarillo, TX Lubbock, TX San Angelo, TX
Fort Wayne, IN
Appleton, WI Madison, WI San Antonio, TX
Ft. Walton Beach, FL
Austin, TX Memphis, TN San Francisco, CA
Galveston, TX
Baton Rouge, LA Merced, CA Santa Fe, NM
Gary-Hammond, IN
Beaumont, TX Miami, FL Sarasota, FL
Grand Rapids, MI
Benton Harbor, MI Milwaukee, WI Seattle, WA
Greeley, CO
Bloomington-Normal, IL Minneapolis, MN Sheboygan, WI
Green Bay, WI
Boulder-Longmont, CO Mobile, AL Sioux City, IA
Greenville, NC
Brazoria, TX Muncie, IN Spokane, WA
Hamilton, OH
Bryan-College Station, TX Naples, FL Springfield, IL
Houston, TX
Casper, WY Nashville, TN Springfield, MO
Huntsville, AL
Cape-Coral-Fort Myers, FL New Orleans, LA St. Cloud, MN
Jackson, MS
Chicago, IL Oakland, CA St. Joseph, MO
Jackson, TN
Cincinnati, OH Ocala, FL St. Louis, MO
Jacksonville, FL
Clarksville, TN - Hopkinsville, KY Odessa-Midland, TX Tacoma, WA
Janesville, WI
Colorado Springs, CO Oklahoma City, OK Tampa-St. Petersburg, FL
Jonesboro, AR
Columbus, GA Olympia, WA Texarkana, TX
Kalamazoo, MI
Dallas-Fort Worth, TX Omaha, NE Topeka, KS
Kankakee, IL
Dayton, OH Orlando, FL Tucson, AZ
Kenosha, WI
Decatur, IL Palm Bay-Melbourne-Titusville, FL Victoria, TX
Knoxville, TN
Deltona-Daytona Beach, FL Peoria, IL West Palm Beach, FL
La Crosse, WI
Denver, CO Phoenix, AZ Wichita Falls, TX
Lafayette, LA
Des Moines, IA Pocatello, ID Wichita, KS
Lake Charles, LA
Dothan, AL Port St. Lucie-Ft. Pierce, FL Wilmington, DE
Lakeland, FL
Dover, DE Portland, OR Yuba City, CA
Las Cruces, NM
Duluth-Superior, MN Pueblo, CO Yuma, AZ
Las Vegas, NV
Eau Claire, WI Punta Gorda, FL
Lawrence, KS
El Paso, TX Racine, WI
Lawton, OK
Enid, OK Rock Island, IL – Davenport, IA
Lincoln, NE
29
ource: Company Data

30. Growing Market Presence
• Retail pharmacy acquisitions
– Rite Aid files (Las Vegas; 27 locations closed)
– El Amal (Puerto Rico; 20 locations acquired)
• Industry consolidation
– Independents
– Fred’s (closing approx. 10% of existing locations)
• ROIC Improving
• Consistent FE & Rx productivity
30

31. Consistent Front-End Productivity
Front-End Sales/Store by Class Year
$2,092
2006
$2,551 $2,076
2005
$2,748 $2,431 $2,030
2004
$3,015 $2,743 $2,411 $2,032
2003
$3,224 $2,958 $2,693 $2,422 $2,002
2002
Average $3,224 $2,985 $2,728 $2,452 $2,045
Year 5 Year 4 Year 3 Year 2 Year 1
Notes: Data based on net new drugstores, excluding acquired stores and stores converting to or from a 24-hour format
Class Year is calculated on a Calendar Year basis; includes only stores open at least 12 months as of 10/1/2007
31
ource: Company Data

32. Consistent Pharmacy Productivity
Prescriptions/Day/Store by Class Year
125
2006
181 118
2005
213 177 121
2004
252 226 190 129
2003
266 243 218 184 124
2002
Average 266 247 219 183 123
Year 5 Year 4 Year 3 Year 2 Year 1
Notes: Data based on net new drugstores, excluding acquired stores and stores converting to or from a 24-hour format
Class Year is calculated on a Calendar Year basis; includes only stores open at least 12 months as of 10/1/2007
32
ource: Company Data

33. ROIC Improving
2003 2004 2005 2006 2007
NOPAT $1,465 $1,687 $1,938 $2,154 $2,514
Average
Invested $15,221 $17,341 $19,412 $21,501 $23,896
Capital
ROIC* 9.6% 9.7% 10.0% 10.0% 10.5%
NOPAT = Net Operating Profit After Tax
ROIC = Return on Average Invested Capital
*Source of methodology: McKinsey & Company, Inc. & Copeland, T., et. al. (2000). Valuation: Measuring and Managing
the Value of Companies. New York: Wiley.
33
ource: Company Data

34. Over $2.0 Billion in CapEx
Other
Dis
trib
ut ion
Stores
y
echnolog
T
34

35. Net New Stores
600
536
500+
500 475
476
400 363 361 372
355 353
344
272
300
191
200 162
100
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 08' 09' 2010
Est. Est.
35
ource: Company Data

36. Sales Area Square Footage Growth
16%
15.2%
14%
13.5%
12.3%
12% 11.6%
9.8%
10% 9.5%
9.2%
8.8%
8.6%
8.7%
8.2% 8.2%
8.0%
8%
6%
4%
2%
0%
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 08' 09' 2010
Est
Est
36
ource: Company Data

37. In-Store Clinics
• Acquired Take Care Health Systems in May
• Staffed by certified nurse practitioners
• Open 7 days a week
• Treat common acute ailments including: colds,
flu, ear infections, and pink eye
• Open in 15 cities across 12 states
• Over 145 currently operating
• 400 by December 2008
37

38. 38

39. Expand Into Additional Sectors of
Pharmacy and Healthcare
Retail Pharmacy
Assisted Pharmacy Benefit
Living Management
Mail Service Home Care
Clinic Pharmacy Specialty Pharmacy
39

40. Investing in Our Future
• Store Growth
– 550 total, 475 net
• Leverage the convenient store location
– Take Care, Printer Cartridges, DHL, Café W
• Leverage pharmacy services
– Option Care, Familymeds, Medmark
• Acquisitions that strengthen the retail base and
healthcare services
40

41. Old, New, and Experienced
Age of the Company
Median Store Age
Average Manager Tenure
Average DM Tenure
Average Store Ops VP Tenure
41
Source: Company Data