1
June 25, 2008
Annual Meeting of Stockholders
This is an oral presentation which is accompanied by slides. Investors areurged to review Rite Aid’s SEC filings.
During today’s presentation forward-looking statements may be made.Such statements are subject to certain risks and uncertainties that couldcause actual results to differ materially from those expressed or implied inthe forward-looking statements. Consequently, all forward-lookingstatements made during this presentation are qualified by those risks,uncertainties and other factors.
Please reference Rite Aid’s SEC filings, which are available on its web site,for a detail description of factors that could cause actual results to differmaterially from those expressed or implied in such forward-lookingstatements.
Also during today’s presentation, a non-GAAP financial measure isreferenced. The definition and purpose for using this measure andhistorical and prospective reconciliations to the GAAP measureare in our Form 8-K we furnished to the SEC which is availableon Rite Aid’s web site.
This is an oral presentation which is accompanied by slides. Investors areurged to review Rite Aid’s SEC filings.
During today’s presentation forward-looking statements may be made.Such statements are subject to certain risks and uncertainties that couldcause actual results to differ materially from those expressed or implied inthe forward-looking statements. Consequently, all forward-lookingstatements made during this presentation are qualified by those risks,uncertainties and other factors.
Please reference Rite Aid’s SEC filings, which are available on its web site,for a detail description of factors that could cause actual results to differmaterially from those expressed or implied in such forward-lookingstatements.
Also during today’s presentation, a non-GAAP financial measure isreferenced. The definition and purpose for using this measure andhistorical and prospective reconciliations to the GAAP measureare in our Form 8-K we furnished to the SEC which is availableon Rite Aid’s web site.
Forward-Looking andCautionary Statement
2
Mary SammonsChairman, President & CEO
3
Completed theBrooks Eckerd Acquisition
5
Completed theBrooks Eckerd AcquisitionCompleted theBrooks Eckerd Acquisition
A Stronger National DrugstoreChain with 5,000 StoresA Stronger National DrugstoreChain with 5,000 Stores
Rite Aid is the Largest Drugstore Chain in theEastern US and the 3rd Largest in the Country
6
Strong Position in 73% ofOur Major Markets
New York
Los Angeles
Pittsburgh
Philadelphia
Detroit
Boston
Atlanta
Baltimore
Washington DC
Buffalo
Raleigh
Lexington
Sacramento
San Diego
Seattle
Spokane
Bakersfield
Providence
Portland OR
Portland ME
Norfolk
Rochester
Charleston WVA
Lansing
Toledo
Burlington
Riverside CA
Richmond
Santa Barbara
Harrisburg
Strong Position in 73% ofOur Major Markets
HartfordLouisvilleAlbany NYAlbany GAGreensboroGrand RapidsFresnoCharlottesvilleGreenville-SpartanburgCharlotte
Binghamton
Monterey
Redding
Parkersburg
Syracuse
Flint
Bangor
Utica
Yakima
Erie
Wheeling
Youngstown
Johnstown
Wilkes-Barre
Medford
Greenville-
New Bern
Benefits of the Acquisition
►Enhanced competitive position
►Strong East coast market share
►Expected to accelerate revenue andearnings growth
►Expected annual net cost savings ofapproximately $300 million ona full run-rate basis
►Potential to further realize additionalcost savings and revenue synergies
9
Great Progress IntegratingAcquired Stores
► Integrated six new distribution centers
► Rite Aid assortments, private brand in all1,800+ stores
► Replaced systems in 2/3 of the stores
► 20% of minor remodels completed
► Consolidated back office functions likepayroll and accounting
► Delivered more cost savings synergies,than originally expected
Improved Performanceof Core Stores
►Same store sales increased by 1.3%►Pharmacy same store sales growth at 1.7%►Front end same store sales up 0.7%►Customer satisfaction improved
New Store DevelopmentContinued
120 New Customer World Stores
Increased ManagementDepth of Senior Team
Rob EasleyChief Operating
Officer
Brian FialaExecutive VP,
Store Operations
Successfully Complete theIntegration
14
Our Progress to Date
►Systems conversions complete►Field management alignment complete►Nearly all stores in close proximity
combined►Minor remodels complete in almost 70%
of acquired stores
15
On Track to Completethe Integration by October!
What We’re Hearing
16
“I like the appearance of the store. It is muchmore open, wider and inviting.”
“They are clean, organized and have a largerselection.”
“I don’t have to wait for my prescriptions.”
“Now I can find the stuff I need quickly.”
“It’s easier to find make-up and over thecounter medicine. The make-up is betterorganized with more selection.”
Sales Trends Improvingin Acquired Stores
17
Closing the Gapin Critical CategoriesClosing the Gapin Critical Categories
19
Closing the Gapin Critical CategoriesClosing the Gapin Critical Categories
Closing the Gapin Critical CategoriesClosing the Gapin Critical Categories
Private Brand PenetrationImprovingPrivate Brand PenetrationImproving
21
Increase Productivityin ALL Stores
Focused on theCustomer Experience
23
Our Health and Wellness Vision
24
Leader in Diabetes Care
25
Health ConditionMarketing Programs
26
Immunizations
27
More In-Store Clinics
28
Capitalize on Successof Living More
29
30
Increase Industry LeadingGeneric Dispense RateIncrease Industry LeadingGeneric Dispense Rate
Focus on Compliance
31
Source: IMS HealthSource: IMS Health
Prescriptions x100Prescriptions x100
Free Rite Aid Rx Savings Card
►Pilot in Michigan stores
►Savings on 10,000prescription drugs▪ 400 generics at $8.99 for 30
days; $15.99 for 90 days
▪ 20% discount on most othergenerics, most brands
▪ 10% off Rite Aid private brand,including 1,500+ over thecounter medications
32
Aggressive Acquisition/File Buy Program
33
“Fill Up & Fuel Up”
34
35
Rite Aid Brand Sales GrowthRite Aid Brand Sales Growth
Upgraded Photo Departments
36
More GNC Departments
37
Effectively Control Expenses
38
A “Frugal” MentalityA “Frugal” Mentality
New Store DevelopmentContinues
39
85 new and relos for fy’0985 new and relos for fy’09
Being Caring Neighbors
40
41
Building our Future
Top Related