Express Scripts Reports First Quarter EPS of $0.86, up 23%

Raises 2009 EPS Guidance

ST. LOUIS, April 29 /PRNewswire-FirstCall/ -- Express Scripts, Inc. (Nasdaq:
ESRX) announced first quarter net income from continuing operations of $214.7
million, or $0.86 per diluted share, which reflects 23% growth over $0.70 for
the first quarter of 2008. The Company reported first quarter cash flow from
continuing operations of $286.4 million, up 15% from $248.3 million last year.

"It has been a strong start to 2009 for Express Scripts. Our differentiated
business model of alignment and behavior-centric approach is resonating in the
marketplace and is translating into a successful start to the selling season,"
stated George Paz, president, chief executive officer and chairman.

"A new chapter in our history has begun with our proposed acquisition of
WellPoint's NextRx subsidiaries. Our aligned business model, combined with
the complementary expertise and capabilities of WellPoint creates significant
opportunities for growth. We are well positioned to showcase our expertise in
drug trend management and innovation in an environment where cost savings are
so crucial for our plan sponsors and patients, while continuing to optimize
health outcomes."

First Quarter 2009 Highlights
-- The Company's generic utilization rate increased to 67.7% from
65.1% last year.
-- Operating income increased 21% to $355.5 million from $294.6 million
in
the first quarter of 2008.

-- EBITDA increased 19% to $380.1 million from $319.1 million last year
and
EBITDA per adjusted claim increased 24% to $3.06 from $2.46 last year.

The Company completed the integration of specialty pharmacy operations into
its PBM operations. As a result, during the first quarter, the Company
changed its organizational structure with new strategic business segments:
Pharmacy Benefit Management (PBM), which now includes specialty pharmacy
results, and Emerging Markets (EM). The EM segment includes drug distribution
services, fertility, sampling and other lines of business. EM services
present potential for growth and aligning them together under strong
leadership will benefit these investments.

2009 Guidance
The Company previously provided 2009 earnings per diluted share guidance in a
range of $3.63 to $3.73. This guidance assumed the majority of free cash flow
in 2009 would be used for share repurchases beginning mid-year, which the
Company believes would have contributed $0.07 to $0.09 to earnings per share.
Given the Company's recent announcement of its definitive agreement to
purchase WellPoint's NextRx subsidiaries (NextRx), the Company has suspended
its existing share repurchase program.

Strong underlying fundamentals will more than offset the impact of the higher
expected share count, and as a result, the Company believes its 2009 earnings
per diluted share will increase to a range of $3.67 to $3.77 (an increase of
$0.11 to $0.13, including the impact of suspending the share repurchase
program as shown in Table 3). This guidance range excludes NextRx
transaction-related costs and NextRx results after the transaction closes.

About Express Scripts
Express Scripts, Inc. is one of the largest PBM companies in North America,
providing PBM services to thousands of client groups, including managed-care
organizations, insurance carriers, employers, third-party administrators,
public sector, workers' compensation, and union-sponsored benefit plans.

Express Scripts provides integrated PBM services, including network-pharmacy
claims processing, home delivery services, benefit-design consultation,
drug-utilization review, formulary management, and medical- and drug-data
analysis services. The Company also distributes a full range of
biopharmaceutical products directly to patients or their physicians, and
provides extensive cost-management and patient-care services.

Express Scripts is headquartered in St. Louis, Missouri. More information can
be found at http://www.express-scripts.com, which includes expanded investor
information and resources. More information on the Center for Cost-Effective
Consumerism can be found at www.consumerology.org.

SAFE HARBOR STATEMENT
This press release contains forward-looking statements, including, but not
limited to, statements related to the Company's plans, objectives,
expectations (financial and otherwise) or intentions. Actual results may
differ significantly from those projected or suggested in any forward-looking
statements. Factors that may impact these forward-looking statements can be
found in the Management's Discussion and Analysis of Financial Condition and
Results of Operations in our Form 10-Q on file with the SEC. A copy of this
form can be found at the Investor Relations section of Express Scripts' web
site at

We do not undertake any obligation to release publicly any revisions to such
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.

EXPRESS SCRIPTS, INC.
Unaudited Consolidated Statement of Operations

Three Months Ended
March 31,
-------------------
(in millions, except per share data) 2009 2008
---- ----

Revenues (1) $5,422.8 $5,490.8
Cost of revenues (1) 4,888.7 5,024.7
------- -------
Gross profit 534.1 466.1
Selling, general and administrative 178.6 171.5
----- -----
Operating income 355.5 294.6
----- -----
Other (expense) income:
Undistributed loss from joint venture - (0.2)
Interest income 0.9 5.3
Interest expense (17.1) (23.3)
----- -----
(16.2) (18.2)
----- -----
Income before income taxes 339.3 276.4
Provision for income taxes 124.6 98.1
----- ----
Net income from continuing operations 214.7 178.3
Net loss from discontinued operations, net of tax (0.3) (1.1)
---- ----
Net income $214.4 $177.2
====== ======

Weighted average number of common shares
outstanding during the period:
Basic: 247.6 252.3
Diluted: 249.3 255.7

Basic earnings per share:
Continuing operations $0.87 $0.71
Discontinued operations - -
Net earnings 0.87 0.70

Diluted earnings per share:
Continuing operations $0.86 $0.70
Discontinued operations - -
Net earnings 0.86 0.69

(1) Includes retail pharmacy co-payments of $822.7 million and $887.7
million for the three months ended March 31, 2009 and 2008,
respectively.

EXPRESS SCRIPTS, INC.
Unaudited Consolidated Balance Sheet

March 31, December 31,
(in millions, except share data) 2009 2008
---- ----
Assets
Current assets:
Cash and cash equivalents $725.0 $530.7
Restricted cash and investments 6.1 4.8
Receivables, net 1,200.8 1,155.9
Inventories 180.1 203.0
Deferred taxes 120.3 118.2
Prepaid expenses and other
current assets 24.5 31.2
---- ----
Total current assets 2,256.8 2,043.8
Property and equipment, net 219.6 222.2
Goodwill 2,880.9 2,881.1
Other intangible assets, net 323.0 332.6
Other assets 28.4 29.5
---- ----
Total assets $5,708.7 $5,509.2
======== ========

Liabilities and Stockholders' Equity
Current liabilities:
Claims and rebates payable $1,365.4 $1,380.7
Accounts payable 490.9 496.4
Accrued expenses 489.9 420.5
Current maturities of long-term debt 520.1 420.0
Current liabilities of discontinued
operations 4.9 4.1
--- ---
Total current liabilities 2,871.2 2,721.7
Long-term debt 1,160.3 1,340.3
Other liabilities 377.2 369.0
----- -----
Total liabilities 4,408.7 4,431.0
------- -------

Stockholders' equity:
Preferred stock, 5,000,000 shares
authorized, $0.01 par value per
share; and no shares issued and
outstanding - -
Common stock, 1,000,000,000 shares
authorized, $0.01 par value;
shares issued: 318,923,000 and
318,958,000, respectively;
shares outstanding: 247,829,000 and
247,649,000, respectively 3.2 3.2
Additional paid-in capital 645.7 640.8
Accumulated other comprehensive
income 4.9 6.2
Retained earnings 3,575.4 3,361.0
------- -------
4,229.2 4,011.2
Common stock in treasury at cost,
71,094,000 and 71,309,000 shares,
respectively (2,929.2) (2,933.0)
-------- --------
Total stockholders' equity 1,300.0 1,078.2
------- -------
Total liabilities and
stockholders' equity $5,708.7 $5,509.2
======== ========

EXPRESS SCRIPTS, INC.
Unaudited Condensed Consolidated Statement of Cash Flows

Three Months Ended
March 31,
-------------
(in millions) 2009 2008
---- ----

Cash flows from operating activities:
Net income $214.4 $177.2
Net loss from discontinued operations,
net of tax 0.3 1.1
--- ---
Net income from continuing operations 214.7 178.3
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 24.6 24.5
Non-cash adjustments to net income 21.1 21.3
Changes in operating assets and liabilities:
Claims and rebates payable (15.3) 28.0
Other net changes in operating assets
and liabilities 41.3 (3.8)
---- ----
Net cash provided by operating activities -
continuing operations 286.4 248.3
Net cash (used in) provided by operating
activities - discontinued operations (0.1) 4.7
---- ---
Net cash flows provided by operating
activities 286.3 253.0
----- -----

Cash flows from investing activities:
Purchases of property and equipment (13.6) (11.7)
Other 3.2 (0.4)
--- ----
Net cash used in investing activities -
continuing operations (10.4) (12.1)
----- -----

Cash flows from financing activities:
Repayment of long-term debt (80.0) (60.0)
Tax benefit relating to employee stock-
based compensation 0.3 12.0
Treasury stock acquired - (121.1)
Net (cash used) proceeds from employee
stock plans (1.4) 6.7
---- ---
Net cash used in financing activities (81.1) (162.4)
----- ------

Effect of foreign currency translation
adjustment (0.5) (1.3)
---- ----

Net increase in cash and cash equivalents 194.3 77.2
Cash and cash equivalents at beginning of
period 530.7 434.7
----- -----
Cash and cash equivalents at end of period $725.0 $511.9
====== ======

Table 1
Unaudited Consolidated Selected Information
(in millions)

3 Months Ended
March 31,
------------
Claims Volume 2009 2008
---- ----
Network 94.2 98.2
Home Delivery & Specialty 9.9 10.4
Other (1) 0.8 0.8
--- ---
Total claims 104.9 109.4
----- -----

Total adjusted claims (2) 124.1 129.6
===== =====

Depreciation and Amortization (D&A):
Gross profit D&A $6.4 $7.0
Selling, general & administrative D&A 18.2 17.5
---- ----
Total D&A $24.6 $24.5
==== ====

Generic Fill Rate
Network 69.0% 66.4%
Home Delivery 56.9% 53.9%
Overall 67.7% 65.1%

(1) Other claims represent: (a) drugs distributed through patient
assistance programs (b) drugs distributed where we have been
selected by the pharmaceutical manufacturer as part of a limited
distribution network and (c) Emerging Market claims.
(2) Total adjusted claims reflect home delivery claims multiplied by 3,
as home delivery claims are typically 90 day claims.

Table 2
EBITDA Reconciliation
(in millions, except per claim data)

The following is a reconciliation of net income from continuing
operations to EBITDA* from continuing operations. The Company believes
net income is the most directly comparable measure calculated under
Generally Accepted Accounting Principles.

3 Months Ended
March 31,
------------
2009 2008
---- ----
Net income from continuing operations $214.7 $178.3
Income taxes 124.6 98.1
Depreciation and amortization 24.6 24.5
Interest expense, net 16.2 18.0
Undistributed loss from joint venture - 0.2
--- ---
EBITDA from continuing operations 380.1 319.1

Total adjusted claims 124.1 129.6

EBITDA per adjusted claim $3.06 $2.46

*EBITDA is earnings before taxes, depreciation and amortization, net
interest and other income (expense); or operating income plus
depreciation and amortization. EBITDA is presented because it is a
widely accepted indicator of a company's ability to service indebtedness
and is frequently used to evaluate a company's performance. EBITDA,
however, should not be considered as an alternative to net income, as a
measure of operating performance, as an alternative to cash flow, as a
measure of liquidity or as a substitute for any other measure computed in
accordance with accounting principles generally accepted in the United
States. In addition, our definition and calculation of EBITDA may not be
comparable to that used by other companies.

Table 3
Guidance Information

Estimated
Year Ended December 31,
2009
-----------------
Low end High end
------- --------
Original guidance - diluted EPS $3.63 $3.73

Suspension of share repurchase (0.07) (0.09)

Lower interest rates 0.03 0.03

Margin improvements 0.08 0.10
---- ----

Revised guidance - diluted EPS $3.67 $3.77
===== =====

SOURCE Express Scripts, Inc.

Jeff Hall, Chief Financial Officer, or David Myers, Vice President Investor
Relations, both of Express Scripts, Inc., +1-314-810-3115,
investor.relations@express-scripts.com