Walgreens Teams Up with DHL to Offer Shipping Services Chainwide

Partnership to deliver convenient access at more than 6,500 locations to the world’s largest international air express network

Walgreens (NYSE, NASDAQ: WAG) has entered into an agreement with DHL, the world’s leading express delivery and logistics company, to offer shipping services in virtually all of its stores chainwide. The rollout will begin in April in Illinois and Florida and is projected to expand to more than 6,500 locations by the end of calendar 2008. The agreement will more than double the number of retail outlets offering DHL shipping services nationwide, providing the most convenient and accessible shipping experience in the express delivery industry.

The Walgreens/DHL partnership will bring more convenience to consumers who want to shop and ship in one quick, easy stop without the long lines and hassle often associated with sending off important packages. DHL Shipping Spot kiosks at Walgreens photo counters will be staffed by Walgreens employees who will weigh, label and ship customer packages to U.S. or international destination. Each location will offer packaging materials, in addition to complimentary DHL Express shipping envelopes and boxes. The service will be available whenever the store is open – including 24 hours at more than 1,600 locations.

“We’ve seen strong customer response to DHL in-store shipping in test markets,” said Walgreens executive vice president of marketing George Riedl. “The service addresses an important need for our time-crunched customer base. This new offering will be another powerful addition to our overall strategy of making life easier for customers.”

Walgreens customers will have access to all of DHL’s core services, including overnight, ground, and international delivery. With Walgreens locations in 49 states and Puerto Rico, shippers will have unprecedented access within minutes of home or work to a global network serving more than 225 countries and territories.

“DHL’s success partnering with a retailer to offer in-store shipping services has proven that American businesses and consumers want the convenience of shipping where they shop, and Walgreens is the perfect partner,” said Hans Hickler, CEO of DHL Express (USA). “Expanding DHL’s retail presence is an important next step in our U.S. retail strategy, as well as our small to mid-sized business growth plans. The combination of shipping within the corner drugstore environment on a national basis is unprecedented and allows both DHL and Walgreens to provide even more convenience to customers in unparalleled ways.”

About Walgreens
Walgreens is the nation’s largest drugstore chain with fiscal 2007 sales of $ 53.8 billion. The company operates 6,148 stores in 49 states and Puerto Rico. Walgreens is expanding its patient-first health care services beyond traditional pharmacy through Walgreens Health Services, its managed care division, and Take Care Health Systems, a wholly owned subsidiary that manages 136 convenient care clinics at drugstores. Walgreens Health Services assists pharmacy patients and prescription drug and medical plans through Walgreens Health Initiatives Inc. (a pharmacy benefit manager) Walgreens Mail Service Inc., Walgreens Home Care Inc. and Walgreens Specialty Pharmacy LLC.

About DHL
At DHL, customer service is back in shipping. Our mission is to provide the most flexible, personable and enjoyable experience in the shipping industry for our customers.
DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source. DHL offers expertise in express, air and ocean freight, overland transport, contract logistic solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHL’s international network links more than 225 countries and territories worldwide with over 300,000 employees dedicated to providing fast and reliable services that exceed customers’ expectations.