Gregory D. Wasson: We are heading towards that. We are not as far along as we expect to be in the near future. We want to determine what it is that a store level pharmacist should and could add to that specialty patient to provide value. The combination between the centralized model, the pharmacist and nurses that we have to assist to pharmacist at the store level combined with the action that can be delivered at the point of care, is going to be, we believe differentiating for us.

Jeffrey A. Rein: Infusion does not necessarily have to be done in a facility although we do offer that. It can be done in the home. It can be done in our stores. One of the things that manufacturers and insurers get worried about is their medication being used and is it being used properly. When they are able to get to someone like Walgreens that is easily accessible, we can make sure that they take their medication. The payer is assured that the medication was used. The manufacturer does not have to worry about returns. It is important that we service these people correctly and that is why infusion is so difficult, but we think we are positioned correctly because it does take a lot of time, a lot of effort. Take Care Clinics is another way to get people into the Walgreens’ system and get those people healthcare and that is why the insurance companies are now paying for that healthcare. If they can get people into the system earlier, they can get taken care of at the need medication, they get that. It avoids the hospital visit or an emergency room visit and helps to keep the total healthcare costs down.

Lisa Gill (J.P. Morgan): Are you working with the plan sponsors, to advertise for example Take Care Clinics to a certain health plans members so they know and understand that the service offering you have?

Gregory D. Wasson: We are working with the sponsors as we sign up and enter into contracts with them and encourage them to help us promote our clinics. It makes sense for them as well to lower their overall healthcare costs.

Lisa Gill (J.P. Morgan): AMP has been brushed off by the current court ruling. Can you talk about any of your other business that will be impacted by changes in reimbursement around the Federal upper limit or around AMP?

Jeffrey A. Rein: It is hard to comment on that right now. We do not know the details. We have no idea of the metrics they are using and how they are going to figure AMP. When we have more information, we will talk about it.

Mark Wiltamuth (Morgan Stanley): Looking at your chart for the last five years your SG&A growth has ranged between 11% and 18%. You did a 9.5% growth number. Do you think you can stay down at that 10% range for the balance of the year?

Jeffrey A. Rein: That is going to be difficult to do. What we are shooting for is around 11% to 12% overall. Getting that down to that 9% year after year would be difficult particularly to opening new stores. If we were not opening all of these new stores, 550 of them next year, then we could control expenses even better. When you are opening all of these new stores, you have to hire people ahead of time. We are going into smaller towns so it requires more help to get those stores open because you do not have people to draw from in a mature market. I do not want to commit to a 9% or 10% with opening all these new stores.

William Rudolphsen: We have done a good job in the past of matching our SG&A growth to our gross profits. That is our intent for the future. We fell off the wagon in the fourth quarter. We are coming back and that is the plan going forward.

Mark Wiltamuth (Morgan Stanley): How have you done on scaling back some of the 24-hour stores and what does that look like to the customer as you have been doing that?

Jeff Rein: We have taken approximately 60 down year over year. It is all based on what the needs are of that particular store. At least some people got too aggressive and opened a 24-hour store just to try and capture more volume. That is not a smart way to run the business, to have all of that open, for the store to be open when you do not need to cover those expenses like that. Year over year we still have more 24-hour stores than we did last year at this time. We are trying to rationalize the use of these 24-hour stores and make sure we are smart business people and match up the sales with what is actually needed.

Mark Wiltamuth (Morgan Stanley): In your November press release you talked about discounting in the market place. Was that more on the front end or was it discounting to capture prescriptions?

Jeff Rein: That was in reference to the front end. It was more in the front end.

Mark Wiltamuth (Morgan Stanley): On the Take Care clinics, how much of an earnings drag are you suffering right now as those stores get started and what year do you think you will shift to profitability?

William Rudolphsen: The earnings drag is going to be about $75 million for the year; 5 cents earnings per share. The breakeven point is going to take about a year to two years for units to gain share and become profitable. It is all going to hinge on how fast we roll them out. We are rolling a lot of these out in calendar 2008. We are going to have about 400 of them by then end of next calendar year, so it is difficult to project beyond that.

Bob Summers (Bear Stearns): Direct store expense dollars grew faster than sales. Could you address that?

William Rudolphsen: The direct store expense line grew faster than sales, but it did not grow as fast as it had in prior periods, just like store salaries.

Bob Summers (Bear Stearns): Why did you have deterioration in cash flow from operations versus last year?

William Rudolphsen: Cash flow from operations, we did have an impact versus last year. Last year we had the Ovations contract through our PBM. That gave a lift to our cash flow, in the $300 million range. We do not have that contract this year. As we turn the calendar year, we will be more comparable on cash flow and I would expect accruals.

Derek Leckow (Barrington Research): You were able to take advantage of the weakness in the stock recently to buy back some stock. Could you give an update on your buyback program?