Medco Health Solutions (NYSE: MHS) Spins-Off; Creates Largest Independent Pharmacy Benefits Company

Experienced Management, Independent Board Dedicated to

Innovation and Leadership

Aug 20, 2003, 01:00 ET from Medco Health Solutions, Inc.

    FRANKLIN LAKES, N.J., Aug. 20 /PRNewswire-FirstCall/ -- Medco Health
 Solutions Inc. (NYSE:   MHS), the leading pharmacy benefits manager (PBM) based
 on 2002 net revenue of $33 billion -- managing more prescriptions than any
 other company in America -- today separated from Merck & Co., Inc.  It is the
 largest domestic corporate spin-off in more than three years.
     (Photo: )
     "Today, as a separate company with an independent board of directors,
 Medco Health is entering an exciting new chapter in its history.  Our people
 are re-energized and our enterprise is rededicated to continuing the
 innovation and leadership that ensures our collective clients obtain
 affordable, high-quality prescription health care for 62 million Americans,"
 said David Snow, chairman, president and CEO, Medco Health.
     Regular trading began today on the New York Stock Exchange for Medco
 Health securities under the symbol MHS following the distribution a day
 earlier of 270 million shares to stockholders of Merck & Co., which has owned
 Medco Health since 1993.   With the opening day of trading today, Medco Health
 becomes a new component of the S&P 500, Standard & Poor's flagship stock
     "As a separate company we have but one focus:  the relentless pursuit of
 continuous improvement - and every day, we are confident that as we do what's
 right for our clients and members, we'll also be doing what's best for our
 company and our new shareholders," said Snow.
     Industry Leadership
     Medco Health is a leader and innovator in applying advanced technologies
 to enhance productivity and reduce costs, provide greater convenience for
 clients and their members, and improve overall patient care.
     Through its home delivery pharmacies, Medco Health filled approximately 82
 million prescriptions in 2002.  This represents about 30 percent more than the
 number of prescriptions filled by the mail service operations of its three
 largest competitors combined.
     In all, Medco Health in 2002 filled or processed approximately 548 million
 prescriptions, delivering medicines through a network of nearly 60,000 retail
 pharmacies nationwide and its home delivery pharmacies.
     The Medco Health spin-off, measured by market capitalization, is the
 largest since the July 12, 2000 spin-off of Stillwell Financial Inc. from
 Kansas City Southern Industries Inc.
     Independent Board Seated
     As expected, concurrent with the spin-off, the three Merck-employee
 directors on the Medco Health board resigned, and seven independent board
 directors were empanelled.
     "With seven external members joining me, the structure of the Medco Health
 board puts us at the vanguard of corporate governance practices and shows
 governance leadership within our industry," said Snow.
     The seven independent directors are:
     --  Howard W. Barker, Jr.:  From July 1982 until he retired in September
         2002, Mr. Barker served as a partner of KPMG LLP.
     --  John L. Cassis:   Mr. Cassis is a venture capitalist.  Since 1994, he
         has served as a partner and board member of Cross Atlantic Partners,
         Inc.  Mr. Cassis formerly headed and was a director of Salomon
         Brothers Venture Capital, and is a director of Nomos Corp.
     --  Michael Goldstein, C.P.A.:  Mr. Goldstein is a director of Toys "R"
         Us, Inc., where he also was Chairman from February 1998 to June 2001.
     --  Lawrence S. Lewin:  Mr. Lewin founded The Lewin Group, a health
         policy and management consulting firm, and most recently served as CEO
         and a Director of Quintiles Transnational, until his retirement in
     --  Edward H. Shortliffe, M.D., Ph.D.: Since January 2000, Dr. Shortliffe
         has been a professor at Columbia University and has held a number of
         other positions at Columbia University, including Chair of the
         Department of Biomedical Informatics for the College of Physicians and
         Surgeons and Director of Medical Informatics Services.
     --  Brian L. Strom, M.D., M.P.H.:  Since 1980, Dr. Strom has been a
         professor at the University of Pennsylvania School of Medicine and has
         held a number of other positions at the University, including Chair of
         the Department of Biostatistics and Epidemiology and Director of the
         Center for Clinical Epidemiology and Biostatistics.  Dr. Strom also
         currently serves on the Drug Safety and Risk Management Committee for
         the U.S. Food and Drug Administration.
     --  Blenda J. Wilson, Ph.D.:  Since July 1999, Dr. Wilson has served as
         the President and Chief Executive Officer of the Nellie Mae Education
     "In their own right, each is a distinguished leader in his or her field.
 Collectively, they will provide our new company with deep and diverse
 expertise in healthcare, public policy, academia, mergers and acquisitions,
 business development and governance," Snow said.
     About Medco Health
     Medco Health Solutions, Inc., ( is the nation's
 leading provider of prescription healthcare services, based on its 2002 net
 revenues of approximately $33 billion.  Medco Health assists its clients to
 moderate the cost and enhance the quality of prescription drug benefits
 provided to 62 million Americans nationwide.  Its clients include private and
 public-sector employers and healthcare organizations, including 190 of the
 Fortune 500 companies.
     This press release contains "forward-looking statements," as that term is
 defined in the Private Securities Litigation Reform Act of 1995, which involve
 risks and uncertainties.  No forward-looking statement can be guaranteed, and
 actual results may differ materially from those projected.  We undertake no
 obligation to publicly update any forward-looking statement, whether as a
 result of new information, future events, or otherwise.  Forward-looking
 statements in this press release should be evaluated together with the
 disclosure regarding Medco Health in our registration statements on Form 10
 (SEC File No. 1-31312) and Form S-1 (SEC File No. 333-86404) filed with the
 Securities and Exchange Commission, including the risks and uncertainties
 facing our business described therein.

SOURCE Medco Health Solutions, Inc.