CVS/pharmacy's New Distribution Center in Vero Beach, FL to Utilize State-of- the-Art Logistics Technology

Thursday, September 30, 2004

WOONSOCKET, R.I., Sept. 30 /PRNewswire-FirstCall/ -- CVS/pharmacy (NYSE: CVS) announced today that the Distribution Center the company will build near Vero Beach, Florida will utilize state-of-the-art automated technology to handle inventory and fulfillment processes for stores in Florida. The new 400,000 sq. ft. Distribution Center in the Indian River County Park of Commerce is scheduled to begin construction this fall and be completed by late 2006.

"Our new Distribution Center will complement our growing presence in Florida and our overall growth strategy," said Kevin Smith, Senior Vice President of Supply Chain and Logistics at CVS/pharmacy. "As we continue to open new stores in Florida, as well as convert the Eckerd stores we acquired, the improved efficiency and increased capacity provided by our Vero Beach Distribution Center will enhance our ability to serve this important market."

The Distribution Center is being developed by CVS in conjunction with the Stellar Group, an award-winning design and build firm, and WITRON Integrated Logistics, a leader in distribution automation. The new facility will employ WITRON's fully integrated technology solution for storage, product retrieval and order picking. This is CVS' second project collaboration with these two partners.

This state-of-the-art logistics system is 30% more productive and requires only half the space of a conventional distribution center. It is the same technology being utilized at the new Ennis, TX Distribution Center, which began servicing CVS stores in Texas earlier this week. This fully integrated facility is the first of its kind in North America.

"This system is highly efficient and cost effective from a time and labor perspective," said Smith. "It goes beyond great distribution productivity as it also allows us to provide customized deliveries to our stores that will speed up product replenishment. No one else in our industry has this level of capability. This will help to ensure that it will always be easy for our customers to purchase the items they are looking for at their local CVS store."

About WITRON

WITRON Integrated Logistics, located in Arlington Heights, IL, is a leading company in the design and implementation of innovative logistics systems. A team of over 700 professionals worldwide has successfully completed over 1,500 projects for over 500 customers in a wide variety of industries. As a systems integrator, WITRON has the ability to take complete responsibility for all phases of a project, from design and implementation through ramp-up and maintenance.

About Stellar Group

The Stellar Group is a premier design, engineering and construction firm providing design/build, general contracting, construction management, mechanical, refrigeration and thermal insulation contracting services worldwide. Headquartered in Jacksonville, FL, Stellar has extensive successful project experience in the food manufacturing, food distribution, industrial manufacturing and distribution, power and utilities, commercial, healthcare, institutional and hospitality markets.