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    FARMINGTON, Conn., April 5 /PRNewswire-FirstCall/ -- Familymeds Group,
 Inc. (OTC Bulletin Board:   FMRX), a specialty pharmacy and medical specialty
 product provider, today announced that it began selling its pharmacy assets
 to Walgreen Co. and Walgreen Eastern Co., pursuant to the asset purchase
 agreement dated February 14, 2007. Familymeds' shareholders approved the
 asset sale to Walgreens at its special shareholder meeting held last week
 at the Company's Farmington offices.
     The asset purchase agreement is for the sale of up to 53 Familymeds
 locations, operating under the Familymeds and Arrow Pharmacy and Nutrition
 Center brands to Walgreens. In consideration, Walgreens will pay
 approximately $60 million for pharmacy assets, customer accounts receivable
 and inventories for these locations, subject to adjustment based on closing
 physical inventory counts. The majority of the locations sold will remain
 open and continue to operate in place; the remainder will have files and
 business transferred to a nearby Walgreens location. The Company expects to
 complete the sale to Walgreens during the second quarter of 2007.
     Ed Mercadante, Chairman & CEO of Familymeds commented, "Our management
 team and Walgreens are working together to ensure the smoothest transition
 possible for our customers without any interruption in service." Mr.
 Mercadante further commented, "It has been a pleasure working with
 Walgreens executives during this process. Walgreens has offered positions
 to, and welcomed, most of our store associates, ensuring not only a
 familiar presence to our customers, but also avoiding disruption to our
 staff during this sale."
     Familymeds also announced today that it has completed several smaller
 asset deals for certain pharmacy locations, and is continuing in its
 discussions with other national and regional pharmacy operators to pursue
 additional opportunities in the coming weeks. The overall plan includes
 distribution of the proceeds of the Walgreens sale and such other sales to
 its shareholders following repayment of debt, satisfaction of certain
 liabilities and associated Company costs.
     About Familymeds Group, Inc.
     Familymeds Group, Inc. is a pharmacy and medical specialty product
 provider formed by the merger on November 12, 2004 of DrugMax, Inc. and
 Familymeds Group, Inc. Familymeds works closely with doctors, patients,
 managed care providers, medical centers and employers to improve patient
 outcomes while delivering low cost and effective healthcare solutions.
 Familymeds now operates 68 locations, including 7 franchised locations, in
 13 states under the Familymeds Pharmacy and Arrow Pharmacy & Nutrition
 Center brand names; most of the locations in New England area operate under
 the Arrow Pharmacy brand. The Company also operates Worksite Pharmacy(SM),
 which provides solutions for major employer groups. The Company also
 operates Familymeds Medical Specialty a specialty pharmaceutical
 distribution business directly to physicians and other healthcare
 providers. The overall Familymeds business platform is designed to provide
 pharmaceutical services for the treatment of acute and complex health
 diseases including chronic medical conditions such as cancer, diabetes and
 pain management. More information can be found at
 http://www.familymedsgroup.com. The Company's online product offering can
 be found at http://www.familymeds.com.
     About Walgreen Company
     Walgreen Co. (NYSE, Nasdaq:   WAG) is the nation's largest drugstore
 chain with fiscal 2006 sales of $47.4 billion. The company operates 5,675
 stores in 48 states and Puerto Rico, including 76 Happy Harry's drugstores
 in Delaware and surrounding states. Walgreens also provides additional
 services to pharmacy patients and prescription drug and medical plans
 through Walgreens Health Services, its managed care division, which
 includes Walgreens Health Initiatives Inc. (a pharmacy benefits manager),
 Walgreens Mail Service Inc., Walgreens Home Care Inc. and Walgreens
 Specialty Pharmacy.
     Safe Harbor Provisions
     Certain oral statements made by management from time to time and
 certain statements contained in press releases and periodic reports issued
 by Familymeds Group, Inc., including those contained herein, that are not
 historical facts are "forward-looking statements" within the meaning of the
 Private Securities Litigation Reform Act of 1995. Because such statements
 involve risks and uncertainties, actual results may differ materially from
 those expressed or implied by such forward-looking statements.
 Forward-looking statements are statements regarding the intent, belief or
 current expectations, estimates or projections of the Company, its
 directors or its officers about the Company and the industry in which it
 operates. Although Familymeds Group, Inc. believes that its expectations
 are based on reasonable assumptions, it can give no assurance that the
 anticipated results will occur. When used in this report, the words
 "expects," "anticipates," "intends," "plans," "believes," "seeks,"
 "estimates," and similar expressions are generally intended to identify
 forward-looking statements. Important factors that could cause the actual
 results to differ materially from those in the forward-looking statements
 include, among other items, management's ability to successfully implement
 additional asset sale, liquidation and dissolution plans, the ability of
 Familymeds Group, Inc. to comply with its obligations under agreements
 governing indebtedness or obtain waivers from lenders in the event of
 non-compliance, the continued availability of liquidity and capital
 resources required to complete these transactions, particularly in the
 event that such transactions require more time than management anticipates,
 and other factors. Familymeds Group, Inc. disclaims any intention or
 obligation to update or revise forward-looking statements, whether as a
 result of new information, future events or otherwise.
     Contact:
     Cindy Berenson, Familymeds Group, Inc.
     860.676.1222 x138; berenson@familymeds.com
 
 

SOURCE Familymeds Group, Inc.