Gary Michael Quotations

July was a tough month for us, and the remainder of the year looks like it will be just as challenging. But we believe that we have the right plans and the best people in our industry to build sales in every market, reduce spending, consider thrift as a way of life and continue to provide the best service and value to our customers.

After two months of integration, the merger is going extremely well. The merger creates many opportunities to strengthen our identical store sales through exciting new store formats, a stronger remodel program and an expanding pharmacy business.

We hope to start construction in the early spring.

From a strategic standpoint, this transaction will strengthen our presence in many of our existing markets across the country -- particularly in Northern and Southern California and the Southwest -- and enables us to enter important urban markets like Chicago and Philadelphia for the first time. Additionally, we will enter the stand-alone drugstore business for the first time.