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EXHIBIT 99.2
FOR IMMEDIATE RELEASE
Contact: Mark Pine
DrugEmporium.com
(614) 341-2896
DRUGEMPORIUM.COM NAMED AMERICA'S #1 INTERNET PRESCRIPTION SITE BY GOMEZ(TM)
COMPANY ALSO ANNOUNCES RECENT AGREEMENT WITH HEALTHCENTRAL.COM
TO REDEFINE DRUG EMPORIUM'S CLICK-AND-MORTAR STRATEGY
COLUMBUS, OH, AUGUST 3, 2000 -- DrugEmporium.com, a subsidiary of Drug Emporium,
Inc. (NASDAQ: DEMP) and a leading online drugstore, announced today that it has
been named the nation's top-ranked online prescription site by Gomez(TM), a
leading authority on e-commerce. DrugEmporium.com also reported that it has
agreed to sell substantially all of its assets, excluding any assets relating to
portal contracts, to HealthCentral.com of Emeryville, California. As part of the
agreement, HealthCentral.com will also assume certain liabilities of
DrugEmporium.com.
The DrugEmporium.com pharmacy earned the top overall score in the Gomez
Summer 2000 Internet Prescriptions Scorecard(TM). DrugEmporium.com also garnered
the top ranking in four categories, including two of the most important: Ease of
Use and Customer Confidence. Gomez also named the DrugEmporium.com pharmacy as
the top destination for first-time online pharmacy users.
The Gomez review cited the DrugEmporium.com pharmacy for "strengths in
many areas", such as customer service. DrugEmporium.com also received high marks
for the design and usability of the company's pharmacy and its "Ask Alex"
customer assistance feature, as well as for the ability to browse health content
from any page on the site.
"This ranking recognizes the prudent investments we have made in our
online pharmacy operations," said Matt Erick, R.Ph., Vice President of Pharmacy
Operations for DrugEmporium.com. "We are very proud to be recognized by such a
highly respected expert on e-commerce."
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In addition to its award-winning pharmacy, DrugEmporium.com also offers
a huge selection of non-prescription items in its online drugstore, with a focus
on secure commerce and health content. The Company provides comprehensive
customer support features, including easy browsing by brand, Ask Alex, a
personal coupon wallet, and confirmation e-mails to track shipment status.
Through its HealthCare Shops, DrugEmporium.com provides one-stop shopping
convenience by integrating health content, valuable services, and a wide range
of products.
RECENT AGREEMENT REDEFINES DRUG EMPORIUM'S CLICK-AND-MORTAR STRATEGY
Drug Emporium, Inc. recently announced that substantially all of the
assets and certain liabilities of DrugEmporium.com, excluding any assets and
liabilities relating to portal contracts, were being acquired by
HealthCentral.com (NASDAQ:HCEN), a leading provider of online healthcare
e-commerce and content to consumers. Under the terms of the agreement, Drug
Emporium receives non-voting preferred stock from HealthCentral.com convertible
into 2.4 million common shares, while HealthCentral.com assumes approximately
$2.0 million in current liabilities plus $5.8 million in lease obligations.
Contingent upon certain revenue streams reaching a minimum threshold, Drug
Emporium will also have the opportunity to potentially earn several million
additional shares of HealthCentral.com convertible preferred stock. The minimum
threshold for the revenue streams is based on current DrugEmporium.com
initiatives and programs that are in the early stages of implementation.
HealthCentral.com and Drug Emporium also agreed to a 10-year Services
Agreement, which provides for joint promotional and advertising opportunities,
access by HealthCentral.com to the Drug Emporium purchasing system and buying
power, and various other synergies between the two companies. The Services
Agreement also provides revenue sharing opportunities based on transactions
involving both Drug Emporium stores and HealthCentral.com online customers.
HealthCentral.com customers placing online orders will have the ability to pick
up those orders at their neighborhood Drug Emporium store, including same-day
pick-up of acute care prescription orders.
The closing of the transaction is expected to occur within the next
45-60 days, at which time HealthCentral.com will take over all funding and
operations of DrugEmporium.com.
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ABOUT DRUGEMPORIUM.COM
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DrugEmporium.com is a subsidiary of Drug Emporium, Inc. (NASDAQ:DEMP). The
full-service online drugstore sells prescription drugs and non-prescription
medications, along with nutrition and wellness products, cosmetics, health and
beauty aids, and household necessities. DrugEmporium.com is licensed to fill
prescriptions in all 50 states and offers 24 hour a day, 7 days a week access to
pharmacists. DrugEmporium.com is headquartered in historic German Village in
Columbus, Ohio. Drug Emporium, Inc. owns and operates 135 brick-and-mortar
stores under the names Drug Emporium, F&M Super Drug Stores and Vix Drug Stores.
All brick-and-mortar stores operate full-service pharmacies and specialize in
discount-priced merchandise including health and beauty aids, cosmetics and
greeting cards. The company also franchises an additional 40 stores under the
Drug Emporium name.
ABOUT GOMEZ(TM)
Gomez is an e-commerce authority for both consumers and e-businesses. For the
complete Gomez Internet Prescription Scorecard, logon to:
http://gomez.com/scorecards/index.cfm?topcat_id=43.
FORWARD LOOKING STATEMENTS
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Except for historical information contained herein, the statements in this
release related to Drug Emporium are forward- looking and made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties,
which may cause the Company's actual results in future periods to differ
materially from forecasted or expected results. These risks include, among other
things, the competitive environment of the online drugstore industry in general,
the ability of the Company to secure and maintain key contracts and
relationships, technical issues related to the development of the website, and
economic conditions in general. These and other risks are more fully described
in the Company's filings with the Securities and Exchange Commission.
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PLEASE VISIT OUR ONLINE DRUGSTORE AT
www.DrugEmporium.com
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