Press Releases

Shoppers Drug Mart announces strategic acquisition of Calea Ltd.'s HealthAccess division and call centre business

Jul 2, 2008

TORONTO, July 2 /CNW/ - Shoppers Drug Mart Corporation (TSX: SC)
announced today that it has acquired the HealthAccess division of Calea Ltd.
Based in Mississauga, Ontario, Calea HealthAccess is a provider of specialty
drug distribution, pharmacy and patient support services.
Under the terms of the acquisition, Shoppers Drug Mart will acquire
Calea's specialty pharmacy business including distribution and dispensing,
therapy management, reimbursement consulting and other manufacturer services,
as well as Calea's call centre business including patient and drug
manufacturer support and adherence monitoring. The acquired businesses will
operate as Shoppers Drug Mart Specialty Health Network Inc. providing
comprehensive patient support services for speciality pharmaceutical needs.
"This strategic acquisition provides Shoppers Drug Mart with a new
platform to expand into special pharmacy services, enhance our ability to
deliver superior patient support and, ultimately, harness the growth potential
of specialty pharmacy, one of the fastest growing segments of the
pharmaceutical marketplace," said Jurgen Schreiber, President & Chief
Executive Officer, Shoppers Drug Mart. "Calea HealthAccess and its highly
respected management team have demonstrated leadership in the provision of
speciality pharmaceuticals and patient services and their talents and
resources will benefit Shoppers Drug Mart's Associate-owners in their efforts
to assist patients with their total health management."

About Calea Ltd.

Calea Ltd. is the leading Canadian provider of patient-focused home
infusion and medical supply services and products. Calea has been serving the
healthcare needs of tens of thousands of Canadians since 1984. Calea is based
in Mississauga, Ontario and operates nationally with facilities in Montreal,
Calgary, and Vancouver. Calea is a subsidiary of Fresenius Kabi, the leader in
infusion therapy and clinical nutrition in Europe and in its most important
countries of Latin America and Asia Pacific. Fresenius Kabi AG is a 100%
subsidiary of the health care group Fresenius SE.

About Shoppers Drug Mart Corporation

Shoppers Drug Mart Corporation is one of the most recognized and trusted
names in Canadian retailing. The Company is the licensor of full-service
retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in
Québec). With more than 1,095 Shoppers Drug Mart and Pharmaprix stores
operating in prime locations in each province and two territories, the Company
is one of the most convenient retailers in Canada. The Company also owns and
operates 65 Shoppers Home Health Care stores, making it the largest Canadian
retailer of home health care products and services. In addition to its retail
store network, the Company owns MediSystem Technologies Inc., a provider of
pharmaceutical products and services to long-term care facilities in Ontario
and Alberta.

Forward-looking Information and Statements

This news release contains forward-looking information and statements,
which constitute "forward-looking information" (under Canadian securities
law), and which may be material, regarding, among other things, the Company's
beliefs, plans, objectives, estimates, intentions and expectations, including
as they relate to its operating and financial results, capital expenditures,
dividend policy and the ability to execute on its operating, investing and
financing strategies. The forward-looking information and statements contained
herein are based on certain assumptions by management, certain of which are
set out in this news release. Inherent in the forward-looking information and
statements are known and unknown risks, uncertainties and other factors beyond
the Company's ability to control or predict. Actual results or developments
may differ materially from those contemplated by the forward-looking
information and statements. The material risk factors that could cause actual
results to differ materially from the forward-looking information and
statements contained herein include, without limitation: the risk of adverse
changes to laws and regulations relating to prescription drugs and their sale,
including pharmacy reimbursement and the availability of manufacturer
allowances, or changes to such laws and regulations that increase compliance
costs; the risk of adverse changes to existing pharmacy reimbursement programs
and the availability of manufacturer allowance funding; the risk of increased
competition from other retailers; the risk of exposure to fluctuations in
interest rates; the risk of material adverse changes in foreign currency
exchange rates; the risk of an inability to attract and retain pharmacists;
the risk of changes to the relationships of the Company with third-party
service providers; the risk that the Company will not be able to lease or
obtain suitable store locations on economically favourable terms; the risk
that new or changes to current federal and provincial laws, rules and
regulations, including environmental laws, rules and regulations, may
adversely impact the Company's business and operations; the risk that changes
in tax law, or changes in the way tax law is expected to be interpreted, may
adversely impact the Company's business and operations; the risk that new or
changes to existing accounting pronouncements may adversely impact the
Company; and the risk of damage to the reputation of brands promoted by the
Company, or to the reputation of any supplier or manufacturer of these brands.
This is not an exhaustive list of the factors that may affect any of the
Company's forward-looking information and statements. Investors and others
should carefully consider these and other risk factors and not place undue
reliance on forward-looking information and statements. Further information
regarding these and other risk factors is included in the Company's public
filings with provincial securities regulatory authorities including, without
limitation, the section entitled "Risks and Risk Management" in the Company's
Management's Discussion and Analysis for the 52 week period ended December 29,
2007 and in the section entitled "Risk Factors" in the Company's Annual
Information Form for the same period. The forward-looking information and
statements contained in this news release represent the Company's views only
as of the date of this release. Forward-looking information and statements
contained in this news release about prospective results of operations,
financial position or cash flows that are based upon assumptions about future
economic conditions and courses of action are presented for the purpose of
assisting the Company's shareholders in understanding management's current
views regarding those future outcomes, and may not be appropriate for other
purposes. While the Company anticipates that subsequent events and
developments may cause the Company's views to change, the Company does not
undertake to update any forward-looking information and statements, except to
the extent required by applicable securities laws.
Additional information about the Company, including the Annual
Information Form, can be found at www.sedar.com.

For further information: Media Contact: Tammy Smitham, Director, Communications & Corporate Affairs, (416) 490-2892 corporateaffairs@shoppersdrugmart.ca; Investor Relations: (416) 493-1220, ext. 5678, investorrelations@shoppersdrugmart.ca


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