These days it's getting harder to differentiate the CVS/pharmacy beauty care aisle from one found in a department store. Except when it comes to cost, of course. That's because we offer premium-quality brands, such as Finland's Lumene®, at prices that don't break the bank. We continue to be first-to-market with exciting new products launched by many leading branded manufacturers. During the past year, our health and beauty sales continued to increase at a rapid pace, leading to solid market-share gains.

Sales of Lumene skincare products, which CVS distributes on an exclusive basis in the United States, combined with the popular Avène® and Vichy® brands from France, grew handsomely in 2005. In fact, skin care has been our fastest-growing category in the front of the store for the past three years. We're leveraging this growth by widening our offerings with exclusive brands and solutions that focus on the aging process, acne, scarring, and other concerns. For example, we have high hopes for the recently introduced Skin Effects by Dr. Jeffrey Dover brand of skincare products. Developed by a pioneer in non-invasive cosmetic surgery techniques, this line offers one of the most advanced anti-aging skincare regimens available today.