Eric Bosshard (Cleveland Research Company): What the total spend was?

Jeff Rein: We just signed the contract with them. We have to see the uptake in terms of specialty; it will be phased in over time. As we learn more we can tell you more about it.

Eric Bosshard (Cleveland Research Company): The gross margin performance in the quarter was strong and was different than the first quarter in terms of the year over year comparison. The pharmacy progress in the quarter seemed immaterial versus the first quarter, is that sustainable?

Bill Rudolphsen: What you are seeing is a lift in the pharmacy margin related to generics, again generics always drive the pharmacy margin. This thing can move around but it will be sustainable for a while and again as new generics come out we would certainly see a lift.

David Magee (Suntrust Robinson Humphrey): On the new store side are you seeing any benefit in this environment on the real estate cost side of the equation as far as opening up stores?

Jeff Rein: There has been some weakening in some areas but it is not as pronounced as you are seeing in the residential areas. We go after the prime corners, there is still a lot of competition for those prime corners and whether it is banks or our competition or Starbucks, whatever it may be, there is still competition for the best corners; people want that easy in, easy out location. We are not seeing much once again on the commercial side.

David Magee (Suntrust Robinson Humphrey): Does it make you change your decision whether to buy the property or just to lease?

Jeff Rein: It depends on what we can work out with the developer. We do like to buy as we can at times, but once again depending on the property, the situation, the risk involved, we may lease the property.

David Magee (Suntrust Robinson Humphrey): With regard to the specialty pharmacy business, what your approximate market share might be at this point in time and any goals you might have in that regard?

Greg Wasson: Today we like to think that we are the fourth largest specialty provider in the country but we also like to talk about we are the number one independent specialty provider in the country and that is where we are looking to grow our business with the Blues organizations, Prime Therapeutics and regional health plans. We have made significant progress over the last several years with the Medmark acquisition, Option Care. With Option Care we are one of the largest and leading infusion specialty providers as well. We have made good progress in market share.

David Magee (Suntrust Robinson Humphrey): When you mentioned the ROIC goal for acquisitions, what timeframe you would hope to achieve 15% and is that the first or second year or is that three of four years out?

Bill Rudolphsen: It would be over a long period of time, we are not going to get there within the first several years.

Andrew Wolf (BB&T Capital Markets): How would you characterize the competitive environment currently and particularly if you could in reference or in comparison to other periods of consumer slowing, do you think there are some major differences?

Jeff Rein: The difference this time versus the last time when it slowed is we have phenomenal competitors. I would like to point out that CVS and Rite Aid have stepped up their game. Wal-Mart is doing well, Target as well merchandised, they do a nice job. We have longs out there making progress; we have a lot of people out there that are doing a great job today. In the past we did not have as much in terms of competition being at the top of their game as they are right now. I would say it is difficult now than it was in the past and once again with all this consolidation, the strong get stronger. People are looking for a value now, they are definitely shopping Walgreens, so we are going to be able to compete well, not only in the stores, not only in specialty but at our site, we have one of the top rated websites right now that people utilize.

Andrew Wolf (BB&T Capital Markets): How about in the area more specifically like in circulars with other drugstores, is that, is it hotter or about the same as you have seen in terms of trying to promote customers into the store, versus the last downturn?

Jeff Rein: I would say based on what I have seen with the different sectors with our drugstore competitors and the mass merchants is that it is similar to when we went into a lower spending environment that the ads heated up as they did want to get people into the store. We do see our competitors getting aggressive particularly on the front page and the back page where people pay the most attention to. I have not seen any huge giveaways though that people are destroying profitability but there are instances where they are getting more aggressive than they might have a year ago.

Andrew Wolf (BB&T Capital Markets): Could you speak to mature store performance, are the older stores still comping decently?

Jeff Rein: Mature stores are still doing well. We have been able to fill in in more areas than ever before across the country. This does hurt the mature store on a dilutive basis, for a year to 18 months. Overall once again as people get older they take more medications so we can still serve them better and they are shopping our stores more based on convenience and accessibility.

Sean Roberts (Lehman Brothers): As you start to move out of the flu season, would you expect to get back to the 5%-6% script growth trend any time soon?

Jeff Rein: It depends on what people’s actions are. I do believe one of the challenges is that people ramped up in 2006 on the Medicare part D, so we are not seeing those huge increases that we did before. With Zyrtek going over the counter right now, that affects us by about 50 basis points. The other thing that is happening too is that we are seeing more people worried about their spending so we have had some reports of people breaking pills in half for example, either take it everyday like that or take their medication every other day, things of that nature. We still think the script growth is going to continue to do well, it has trended down in the United States though over the last couple years. It is a challenge for us but once again we are up to it. As more drugs come online, particularly the generic drugs that does help drive the business as people can afford those medications better than the brand side.