MERCKMEDCO.COM & CVS.COM ALLIANCE
PROVIDES ONE-STOP SHOPPING FOR CONSUMERS

FRANKLIN LAKES, N.J. - WOONSOCKET, R.I., July 26, 2000 - merckmedco.com, the world's largest, most experienced online pharmacy, today announced that visitors to its site can now purchase over-the-counter medications, vitamins, herbal remedies and health and beauty aids exclusively through its alliance with CVS.com, the online subsidiary of the CVS/pharmacy (NYSE:CVS), America's #1 pharmacy.

"The combination of merckmedco.com and CVS.com has created the best of both worlds for consumers," said Stephen Gold, Senior Vice President, E-commerce Strategy and Delivery, Merck-Medco. "People will get the convenience of purchasing all of their prescription and nonprescription products at one site, and the peace of mind of knowing that they're dealing with two of the most trusted and experienced names in the pharmacy business."

By simply visiting the "The Store" tab from the merckmedco.com home page (http://www.merckmedco.com/), consumers can access CVS.com's complete catalog of nonprescription medications, vitamins, herbal remedies and personal care products for a true, one-stop shopping pharmacy experience.

"Implementation of this alliance makes CVS.com the exclusive OTC provider to merckmedco.com, with access to more than 55 million Merck-Medco members nationwide, many of whom are west of the Mississippi, a region where CVS currently does not have any stores," said Chris Bodine, Sr. Vice President, Merchandising, CVS. "This is an alliance that enhances the national reach of the CVS brand and provides a total healthcare solution for our customers."

merckmedco.com dispenses more than 85,000 prescriptions per week, which accounts for more than half of the total prescription market of the major online pharmacies. The site was originally designed to provide online pharmacy services for Merck-Medco's more than 55 million plan members.

But with the CVS.com alliance and the recent launch of YOURxPLAN, a prescription drug savings plan for people lacking adequate drug coverage, merckmedco.com now offers one-stop shopping for a wide range of consumers interested in conducting pharmacy transactions over the Internet.

New Personalized Health Resources

The addition of nonprescription products is just one in a series of features designed to enhance the quality and scope of services available at merckmedco.com. Other services include:

• My Page: a personalized home page for each individual; designed specifically to provide messages about their pharmacy benefit plan, refill reminders, prescription information, health tips and other important information that is specific and relevant to each consumer's personal prescription history and benefit plan design.
• My Health: a health and wellness information center with resources and tools personalized for each individual based on his or her health interests.
• My Benefits: a service convenience area providing plan members with access to important, relevant information about their individual prescription benefit plan including prescription coverage and pricing comparisons for both brand and generic medications; pharmacy benefit plan highlights; a supply request feature; and other key tools designed to make it easy for members to manage their pharmacy benefit online, anytime.
• My Prescriptions: one-stop shopping and information designed specifically to meet members' prescription needs. Included here is online status information, 12 months of integrated prescription history, important drug information, online ordering and coverage and pricing information designed to help members optimize their prescription benefit.

Health Information Resources

In addition to a suite of personalized services, merckmedco.com offers interactive information resources to help educate consumers about health issues that interest them. For consumers who want to learn about a particular medical condition or medication, merckmedco.com offers the online edition of The Merck Manual - Home Edition, which provides easy access to information that is written in layperson's language. Visitors to merckmedco.com also have access to specialized health information through several online partnerships.

The Pharmacy of the Future

"In addition to the wealth of new information and service available through merckmedco.com, our powerful infrastructure of mail service pharmacies has enabled Merck-Medco to effectively integrate the Internet into an already successful business model," said Richard Clark, President of Merck-Medco. "By devoting significant resources to continuously improve our technology, clinical and mail service capabilities, Merck-Medco has emerged as a true Internet-enabled company."

Merck-Medco has the most extensive, state-of-the-art mail service infrastructure of any pharmacy benefit manager or online pharmacy. Its mail service pharmacy in Las Vegas is the world's most automated pharmacy, capable of dispensing more than 5,000 prescriptions per hour at the highest standards of quality and accuracy.

About CVS and CVS.com
CVS/pharmacy is the nation's largest retail provider of prescriptions, with total sales of $18.1 billion in 1999. The company is the #1 drugstore chain in the United States with approximately 4,100 stores in the Northeast, Mid-Atlantic, Southeast and Midwest regions. General information about CVS, including corporate background and press releases, is available at CVS's web site at http://www.cvs.com/. CVS.com, the nation's first complete Internet pharmacy, provides 24-hour-a-day access to registered pharmacists via the Internet or toll-free telephone number. CVS.com also offers standard or next-day delivery of quality prescriptions, over-the-counter medications, and health and beauty products. CVS.com accepts thousands of third-party plans and offers thousands of over-the-counter items at highly competitive prices, online or telephone ordering, in-store pick-up or home delivery of prescriptions, and direct toll-free access to CVS.com pharmacists at (888) 607-4CVS. A CVS.com online media kit is available at http://www.businesswire.com/cnn/cvs.shtml.

About Merck-Medco
Merck-Medco is the leading provider of comprehensive, quality, affordable prescription drug care in the United States. An independently managed subsidiary of Merck & Co., Inc., Merck-Medco serves the needs of more than 55 million, or more than one-in-five Americans. Merck-Medco manages some 370 million prescriptions per year for its clients through its 12 mail service pharmacies and retail pharmacy networks. Merck-Medco's clients include major corporations, Blue Cross-Blue Shield groups, insurance carriers, health maintenance organizations, government health plans and unions. In April, Merck-Medco and Reader's Digest introduced YOURxPLAN, a pharmacy-savings program for individuals and families without prescription drug coverage or with inadequate coverage. More information on Merck-Medco is available at http://www.merckmedco.com/.