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McKESSON CORPORATION

radio frequency signals to provide our customers with industry leading order quality and fulfillment at up to 99.9% accuracy. Closed Loop

DistributionSM, which integrates portable Palm technology with Acumax® Plus to give customers complete ordering and inventory control,

and Supply Management OnlineSM, an Internet-based ordering, purchasing, third-party reconciliation and account management system, help

ensure that our customers have the right products at the right time for their facilities and patients.

Our investment in operational performance also includes Six Sigma — an analytical methodology that emphasizes setting high quality

objectives, collecting data, and analyzing results to a fine degree in order to improve processes to reduce costs and errors. Furthermore, we

continue to implement information systems to help achieve greater consistency and accuracy both internally and for our customers.

The U.S. Pharmaceutical Distribution business’ major value-added offerings, by customer group, include the following:

Retail Chains (drug stores, food/drug combinations, mail order pharmacies, and mass merchandisers) — Business solutions that help chains

increase revenues and profitability:

Retail Independent Pharmacies — Marketing, merchandising, operational efficiencies and industry leadership that help pharmacists focus

on patient care while improving profitability:

Institutional Providers (hospitals and health systems, integrated delivery networks, clinics and other acute-care facilities, and long-term care

providers) — Electronic ordering/purchasing and supply chain management systems that help improve efficiencies, save labor and improve

capital:

International Pharmaceutical Distribution. Consists of McKesson Canada Corporation, a wholly-owned subsidiary, the largest

pharmaceutical distributor in Canada. We also own an approximately 49% interest in Nadro, the leading pharmaceutical distributor in Mexico.

Retail Automation. Manufactures and markets automated pharmacy and supply management systems and services to retail and institutional

outpatient pharmacies through its McKesson Automation Pharmacy Systems (“APS”) unit. Key products and services include:

• Rx-PakSM — Bulk repackaging leverages our purchasing power and supplier relationships, offers pharmaceuticals at reduced prices,

helps increase inventory turns and reduces working capital investment;

• Central Fill — Improves pharmacy productivity and reduces costs by managing prescription refill volume remotely;

• Inventory Management Solutions — Reduces inventory carrying costs through forecasting integrated with automated replenishment

technologies; and

• Re-Distribution Centers — Two large facilities which offer access to inventory for single source purchasing, including

pharmaceuticals and biologicals.

• Valu-Rite® and Health Mart® — Networks of independent pharmacies that leverage group branding and purchasing power;

• AccessHealth — Saves time and costs through comprehensive managed care and reconciliation assistance services;

• McKesson OneStop Generics SM — Helps pharmacies maximize their cost savings with a broad selection of rebate-eligible generic

drugs, lower up-front pricing and one-stop shopping; and

• Pharma 360 — Profitability analysis tool that helps pharmacists measure and compare results with their local and national competitors.

• Fulfill-RxTM — Streamlines pharmacy inventory replenishing, automates inventory re-ordering, and optimizes medication cabinet

inventory to easily value the pharmacy’s total inventory investment;

• Asset Management — Comprehensive program designed to deliver improved inventory management controls; and

• Medication Management — Complete pharmacy management focused on improving patient outcomes by increasing drug safety,

developing pharmacy staff, and streamlining administrative processes.

• A wide range of pharmacy counting and weighing technologies including Baker Cells®, Baker Cassettes® and AccuMed™

and weighing prescription scales;

• AutoScript III® and AccuScript™ — Robotic dispensing systems designed for accuracy and throughput with, modular, variable

capacity design;

• Pharmacy 2000® — Productivity workflow software system that provides stand-alone reporting an