Walgreens Launches Comprehensive Loyalty Program Sept. 16

DEERFIELD, Ill., September 15, 2012 - Walgreens (NYSE: WAG) (NASDAQ: WAG) today announced the official launch of a comprehensive customer loyalty program on Sunday, Sept. 16, offering customers ways to save, earn points and get rewarded for purchases, services and healthy behaviors. In what could become the largest consumer loyalty program in the country, Balance Rewards will be available beginning Sept. 16 for customers to join in stores, in addition to the current online enrollment available at www.walgreens.com/balance. Customers can also enroll in Balance Rewards with a mobile device through the Walgreens app or by scanning the program QR code found on signs in the stores. All of the more than 7,900 Walgreens and Duane Reade stores across the country are participating in Balance Rewards.

More than one million customers have signed up for the program since Sept. 6, when Walgreens initiated its online-only enrollment process.

“Our loyalty program is distinctive,” said Graham Atkinson, Walgreens senior vice president and chief customer experience officer. “Balance Rewards offers easy enrollment, instant points and endless rewards, as well as ways to get, stay and live well at Walgreens. This comprehensive rewards program is one of Walgreens largest and most important programs in company history. As part of our strategic vision to become America’s first choice for health and daily living, Balance Rewards is the latest innovation in Walgreens long heritage of helping customers be happy and healthy.”

Balance Rewards offers three key benefits, all customized for the consumer:

• Easy to Join: Customers have easy, multi-channel access to join in stores at checkout or any photo kiosk, online at www.walgreens.com/balance and with their mobile device through the Walgreens app or by scanning the program QR code found on signs in the stores. Savings and points can be easily earned when members either show their Balance Rewards card, provide their telephone number or scan their mobile rewards card from the app.
• Instant Points: Customers can instantly earn and redeem points for thousands of items in store and online. Restrictions apply; see terms and conditions for full details (www.walgreens.com/balance). Customers will also earn points for prescriptions where state law allows, and for purchases and activities that help them stay well, like the Walk with Walgreens program (walk.walgreens.com) and immunizations.ⁱ
• Endless Rewards: Customers can choose how and when to redeem their points, giving customers the opportunity to earn the rewards that are the most valuable to them. Points will not expire as long as customers remain active by shopping at Walgreens at least once every six months and redeem their points within three years.

“Walgreens designed Balance Rewards entirely for the consumer,” said Adam Holyk, Walgreens divisional vice president of loyalty and consumer insights. “We have utilized the latest technologies in loyalty programs to make it easier for customers to save, earn and redeem points. Balance Rewards also strengthens our ability to better understand our customers, meet their changing needs and treat our best customers even better. Customers will see more customized stores with improved product mixes and rewards on popular products.”

All Duane Reade stores are also participating in the Balance Rewards program. In addition to signing up at a Walgreens store, customers can join Balance Rewards at any Duane Reade store today and start saving and earning points immediately. Duane Reade FlexRewards program points have been converted to Balance Rewards and become available when customers join the new program.

About Walgreens

As the nation's largest drugstore chain with fiscal 2011 sales of $72 billion, Walgreens (www.walgreens.com) vision is to become America’s first choice for health and daily living. Each day, Walgreens provides nearly 6 million customers the most convenient, multichannel access to consumer goods and services and trusted, cost-effective pharmacy, health and wellness services and advice in communities across America. Walgreens scope of pharmacy services includes retail, specialty, infusion, medical facility and mail service, along with respiratory services. These services improve health outcomes and lower costs for payers including employers, managed care organizations, health systems, pharmacy benefit managers and the public sector. The company operates 7,929 drugstores in all 50 states, the District of Columbia and Puerto Rico. Take Care Health Systems is a Walgreens subsidiary that is 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.

Cautionary Note Regarding Forward-Looking Statements: Statements in this release that are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expect," “likely,” "outlook," “forecast, "would," "could," "should," “can,” “will,” "project," "intend," "plan," "goal,” “continue," "sustain," “synergy,” "on track," "believe," "seek," "estimate," "anticipate," "may," “possible,” "assume," and variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, assumptions and uncertainties, including, but not limited to, those relating to the implementation, operation and growth of our customer loyalty program and those described in Item 1A (Risk Factors) of our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as amended, each of which is incorporated herein by reference, and in other documents that we file or furnish with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Except to the extent required by law, Walgreens does not undertake, and expressly disclaims, any duty or obligation to update publicly any forward-looking statement after the date of this report, whether as a result of new information, future events, changes in assumptions or otherwise.

ⁱ Due to state and federal laws, points cannot be earned on some items. Points will not be awarded to anyone who currently is or was at any time in 6 months prior to purchasing Pharmacy Items covered by Medicare, Medicaid, Tricare or other government-funded healthcare program. Pharmacy Items must be purchased at participating Walgreens Drugstore, Rxpress, Duane Reade, or Walgreens Pharmacy locations (“Participating Stores”) to earn points. Excludes Pharmacy Items purchased from AR, NJ or NY pharmacies and prescriptions transferred to a Participating Store located in AL, MS, OR or PR. For terms and conditions for full details on all point earnings and redemptions, visit Walgreens.com/Balance.

Walgreens
Jim Graham
jim.graham@walgreens.com
Work: 847-315-2925
Mobile: 224-723-3440