drugstore.com Aligns With New FSA Transaction Standards to Identify Eligible Over-the-Counter, Vision and Pharmacy Products

BELLEVUE, Wash., Nov. 17 /PRNewswire-FirstCall/ -- drugstore.com, inc., (NASDAQ: DSCM) a leading online retailer of health, beauty, vision, and pharmacy products has implemented the new uniform point-of-sale system identifying FSA eligible transactions ahead of the scheduled deadline. The IRS is requiring retail pharmacies to operate a certified Inventory Information Approval System (IIAS) by January 1, 2009, which limits the use of FSA debit cards to eligible products only. The drugstore.com IIAS, established in 2004, is now certified by SIGIS, an industry group established to standardize requirements for operating an IIAS as mandated by the IRS.

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"drugstore.com has long supported standards to help FSA account holders maximize their health savings dollars for prescription and non-prescription items," said David Lonczak, vice president and chief marketing officer, drugstore.com. "We make FSA shopping very easy for our customers with a single-stop for a wide selection of more than 3,000 eligible over-the-counter products conveniently organized into one store with links to order from our pharmacy and our contact lens subsidiary."

Now, more than ever before, consumers are looking for ways to stretch their budgets and FSA programs lower the cost of purchasing essential health products. This time of year FSA account holders need to make decisions about how to use the remaining health dollars in their accounts or risk losing them. Many FSA plans require account holders to spend that money by the end of the calendar year; others have until March 15, 2009.

drugstore.com helps customers make educated decisions about spending their account dollars wisely because it is the only retailer with a dedicated FSA store displaying eligible products http://www.drugstore.com/fsa. For example, the store carries everyday health essentials such as acid reducers, pain killers and bandages. Customers can also find more specialized medical devices such as glucose monitors for diabetes, blood pressure monitors, a defibrillator and electric scooters for mobility.

For prescription contact lenses, customers can order from Vision Direct http://www.visiondirect.com, a wholly-owned subsidiary of drugstore.com and the second largest online retailer of contacts in the United States. Prescription drugs are available from the drugstore.com pharmacy, a fully-licensed US pharmacy able to ship medication to all 50 states.

To make FSA shopping even easier, drugstore.com manages the accounting work for FSA customers. All FSA debit cards are now accepted and customers who need receipts for reimbursement can print out an FSA-only receipt for any time period simply by logging into their online account.

drugstore.com offers customers free shipping on most orders http://www.drugstore.com/shipping, 5% back through the drugstore.com dollars(TM) loyalty program, and valuable "click and save" instant online coupons for many everyday essentials including FSA-eligible products.

About drugstore.com, inc.

drugstore.com, inc. (NASDAQ: DSCM) is a leading online retailer of health, beauty, vision and pharmacy products. Our portfolio of brands include: drugstore.com(TM), Beauty.com(TM) and VisionDirect.com(TM). All are accessible from http://www.drugstore.com and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 40,000 products at competitive prices.

The drugstore.com pharmacy is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) and operates in compliance with federal and state laws and regulations in the United States.

     Media Contact:
     Anne Marshall
     425.749.2667
     amarshall@drugstore.com