Walgreens Announces $2 Billion Share Repurchase Program as Part of New Capital Allocation Policy

Board of Directors Declares Regular Quarterly Dividend; Sets Long-Term Dividend
Payout Target
DEERFIELD, Ill.--(Business Wire)--
The board of directors of Walgreen Co. (NYSE: WAG) (NASDAQ: WAG) announced it
has authorized a new $2 billion share repurchase program. The program, which
expires at the end of 2013, replaces the previous $1 billion plan announced in
January 2007 which had approximately $655 million remaining. Since 2004,
Walgreens has repurchased more than $1.3 billion of common stock.

The board also declared a regularly quarterly dividend of 13.75 cents per share,
a 22.2 percent increase over the year-ago dividend, and set a long-term dividend
payout target of 30 to 35 percent of net earnings.

Walgreens generated a record $4.1 billion in cash flow from operations in fiscal
2009 as a result of its stronger operating performance and improved working
capital. "We remain confident in our growth strategy and ability to drive
earnings growth, increase return on invested capital and generate strong cash
flow," said Walgreens President and CEO Greg Wasson. "With that, we have
outlined a capital policy to provide further clarity on our future uses of
cash."

Capital Policy Guidelines

Walgreens is committed to:

* Maintaining a strong balance sheet and financial flexibility,
* Reinvesting in core strategies,
* Investing in strategic opportunities that reinforce its core strategies and
meet return requirements, and
* Returning cash to shareholders from surplus cash flow in the form of dividends
and share repurchases over the long term.

"This new capital policy demonstrates Walgreens ongoing commitment to delivering
value to our shareholders," said Wasson. "We are especially proud of our strong
track record of consistently rewarding shareholders through dividends. In the
last year, Walgreens paid more than $470 million in dividends to our
shareholders. In addition, we have paid a dividend for 308 consecutive quarters
and raised our dividend for 34 consecutive years."

The announced regular quarterly dividend of 13.75 cents per share is payable
Dec. 12, 2009 to shareholders of record Nov. 16, 2009.

Walgreens (www.walgreens.com) is the nation's largest drugstore chain with
fiscal 2009 sales of $63 billion. The company operates 7,045 drugstores in all
50 states, the District of Columbia and Puerto Rico. Walgreens provides the most
convenient access to consumer goods and services and cost-effective pharmacy,
health and wellness services in America through its retail drugstores, Walgreens
Health Services division and Walgreens Health and Wellness division. 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., Walgreens Specialty
Pharmacy LLC and SeniorMed LLC (a pharmacy provider to long-term care
facilities). Walgreens Health and Wellness division includes Take Care Health
Systems, the largest and most comprehensive manager of worksite health and
wellness centers and in-store convenient care clinics, with more than 700
locations throughout the country.

(Please note: Stock exchanges typically set the ex-dividend date two business
days before the shareholder-of-record date. This means if you purchase stock on
the ex-dividend date or after, you will not receive the next dividend payment.
If you purchase before the ex-dividend date, you will receive the dividend.)

This news release contains forward-looking statements that involve risks and
uncertainties.The following factors, among others, could cause results to differ
materially from management expectations as projected in such forward-looking
statements: increasing competition; economic conditions; changes in third-party
reimbursement levels; licensing and regulatory issues; the rate of generic
introductions; the success of our acquisitions; and our credit ratings and
access to credit.Investors are referred to the "Cautionary Note Regarding
Forward-Looking Statements" and "Risk Factors" in Walgreen`s most recent Form
10-K, which Note and Risk Factors are incorporated into this news release by
reference.

Walgreen Co.
Michael Polzin
(847) 914-2920
http://news.walgreens.com

Copyright Business Wire 2009