WOONSOCKET, R.I. (November 2, 2006)

CVS Corp. here and Caremark Rx said they entered into a merger agreement to create the nation’s top “integrated” pharmacy provider. Caremark shareholders will receive 1.67 shares of CVS for each share of Caremark. CVS stockholders will own 54.5% of the combined company, and Caremark shareholders will own 45.5%. The deal is valued at about $21 billion. Mac Crawford, current chief executive officer, chairman and president of Caremark, will become chairman of CVS/Caremark, and Tom Ryan, chairman, CEO and president of CVS, will become president and CEO of the new company. Caremark is the nation’s largest pharmaceutical benefit management company, and CVS is the largest drug chain in terms of store count. Combined projected revenues for CVS and Caremark for 2006 are expected to be about $75 billion after adjusting for intercompany transactions. The companies anticipate the transaction to close in six to 12 months.