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Exhibit 99.1
Company Press Release
drugstore.com Raises over $62 Million Through Private Placement of Common Stock
BELLEVUE, Wash.--(BUSINESS WIRE)--July 31, 2000--drugstore.com(TM), the leading
Internet retailer of health, beauty and wellness products, today announced it
has secured commitments for a $62,682,825 private placement financing at $4.9375
per share of common stock.
Due to Nasdaq regulations, approximately $23 million of the placement will
initially take the form of a participating, non-voting, preferred instrument
that will automatically convert into common stock upon shareholder approval.
The private placement is led by Integral Capital Partners, and includes other
new investors Baron Capital and Hearst Communications, a personal investment
from John Doerr, as well as participation from certain other existing investors.
Closing of the financing is subject to customary closing conditions, which are
expected to be met within one week.
This press release may contain forward-looking statements regarding future
events or the future financial and operational performance of drugstore.com.
Actual events or performance may differ materially from those contained or
implied in such forward-looking statements. Risks and uncertainties that could
lead to such difference could include, among other things: drugstore.com's
limited operating history, the unpredictability of future revenues and expenses
and potential fluctuations in revenues and operating results, risks related to
business combinations and strategic alliances, consumer trends, the level of
competition, seasonality, the timing and success of expansion efforts, risks
related to systems interruptions, possible governmental regulation, and the
ability to manage a rapidly growing business. Additional information, regarding
factors that potentially could affect drugstore.com's business, financial
condition and operating results is included in drugstore.com's filings with the
Securities and Exchange Commission, including in the prospectus dated March 15,
2000 relating to drugstore.com's public offering of common stock, in
drugstore.com's Annual Report on Form 10-K for fiscal 1999 and its Quarterly
Report on Form 10-Q for the quarter ended April 2, 2000.
