drugstore.com Deploys CommerceHub Supply Chain Platform

ALBANY, NY -- (MARKET WIRE) -- May 9, 2007 -- CommerceHub, the Supply-on-Demand platform for supply chain integration and fulfillment solutions, announced today that it has deployed Drop-Ship Master™ & Universal Connection Hub™ for drugstore.com, inc., a leading online provider of health, beauty, vision and pharmacy products. The online retailer will use the CommerceHub Supply-on-Demand platform to provide a broader selection of products and new categories through its new drop-ship virtual inventory fulfillment program. The new e-commerce capability enables the rapid expansion of customer requested products that are more specialized, hard to find, larger in size, or perishable.

"We are delighted to give our customers access to a wider variety of products through the launch of drop-ship," said Julie Johnston, vice president, OTC merchandising, drugstore.com. "This solution enables us to expand quickly into additional categories without taking on the cost of inventory. By the end of 2007, we expect to grow our over-the-counter selection from 30,000 to more than 34,000 items."

CommerceHub's Drop-Ship Master™ solution enables drugstore.com to achieve rapid virtual inventory fulfillment by empowering its vast supply chain to fulfill orders directly to the end customer. The robust Universal Connection Hub™ 'any-to-any' integration translates and normalizes communications with each supplier, regardless of legacy IT structure, allowing drugstore.com to reliably connect suppliers and add additional product categories. The CommerceHub Supply-on-Demand platform provides proactive monitoring capabilities that ensure on-time delivery, further building the drugstore.com™ brand experience.

"The electronic integration of suppliers is key for building an efficient supply chain that can handle increased throughput without additional costs," said Steve Hamlin, CEO at CommerceHub. "Our solution allows drugstore.com to rapidly increase their over-the-counter selection without the costs of additional IT infrastructure and physical inventory."

CommerceHub supply chain solution provides dependable supplier integration, reliable order processing and on-time fulfillment for Top 25 retailers and major brand name suppliers.

ABOUT COMMERCEHUB

CommerceHub is the industry's leading provider of fulfillment and integration solutions for retailers and wholesale distribution companies. With nearly a decade of experience working with Top 25 retailers, distribution supply chains and a wide array of major brand name suppliers, CommerceHub manages nearly $1 billion in goods annually on behalf of such industry leaders as Costco, QVC, Staples, Circuit City, eToys, Kmart, Sears, Walgreens, Dell, Toshiba, Sanyo, Minolta, Gateway and Little Tikes.

For information on the CommerceHub Supply-on-Demand platform, Universal Connection Hub, Drop Ship Master or Product Master visit our website at www.commercehub.com.

ABOUT DRUGSTORE.COM, INC.

drugstore.com, inc. is a leading online provider of health, beauty, vision, and pharmacy products. The drugstore.com™ online store provides a convenient, private, and informative shopping experience that encourages consumers to purchase products essential to healthy, everyday living. The online store offers thousands of brand-name personal health care products at competitive prices; a full-service, licensed retail pharmacy; and a wealth of health-related information, buying guides, and other tools designed to help consumers make informed purchasing decisions. Consumers can personalize their shopping experiences with shopping lists, e-mail reminders for replenishing regularly used products, and private e-mail access to pharmacists for questions.

drugstore.com, inc. has been awarded the Verified Internet Pharmacy Practice Sites (VIPPS) certification by the National Association of Boards of Pharmacy (NABP) as a fully licensed facility exercising competent, safe pharmacy practices in compliance with federal and state laws and regulations.

Contact Information: Contact: Donna Cooper 518.810.0700 x3691