2000 A Year of Great Achievement

Index 2000 - A Year of Great Achievement Financial Highlights To our Shareholders Positioned for Growth Front-End Business New Store Growth Program CVS Procare CVS.com Community Involvement Store Count by State Management's Discussion and Analysis... Management's Responsibility for Financial Reporting Independent Auditor's Report Consolidated Statements of Operations Consolidated Balance Sheets Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements.    Significant Accounting Policies    Borrowing and Credit Agreements    Leases    Employee Stock Ownership Plan    Stock Incentive Plans    Pension Plans and Other Postretirement Benefits    Income Taxes    Commitments & Contingencies    Business Segments    Business Combinations    Reconciliation of Earnings Per Common Share    Quarterly Financial Information (Unaudited) Five-Year Financial Summary Corporate Information

• Our total sales jumped 13% on a comparable 52-week basis to $20.1 billion.

• Same store sales rose 11%, while pharmacy same store sales climbed 18%.

• Our earnings per share advanced 18% on a comparable 52-week basis.

• We once again filled more prescriptions than any other retailer in America, dispensing approximately 300 million in 2000.

• We opened 388 new and relocated stores, including 35 CVS ProCare stores, and ended the year with a record 4,133 stores.

• We entered new markets with substantial growth potential: Chicago, Orlando and Tampa.

• We now operate approximately 1,100 extended-hour stores, 1,200 drive-thru pharmacies and 3,000 one-hour photo labs—making life easier for our customers.

• We completed the acquisition of Stadtlander Pharmacy, making CVS ProCare #1 in the fast-growing specialty pharmacy market.

• We generated $384 million in free cash, significantly higher than 1999's level.

• Our stock price soared more than 50% and our market capitalization grew to $24 billion.