Press Release

The Company now expects earnings for the third quarter ending September 29, 2001, of approximately $0.30-$0.32 per diluted share. CVS had previously expected earnings for the quarter of approximately $0.35-$0.37 per diluted share. The Company plans to discuss its revised outlook for full year earnings at the time of the third quarter earnings announcement, which is scheduled for October 30.

The Company's previously-announced guidance for the third quarter assumed total same store sales growth of 9%-10%. Since that time, the Company has reported total same store sales growth of approximately 8%. While early September showed signs of improvement, last week's national tragedy and its effect on consumer confidence are expected to have a negative impact on September sales. The Company expects to report September sales results on October 12.

"Over the last several months, we have taken several steps to improve both front-end and pharmacy sales results, including achieving the best pharmacist staffing levels we have had in recent years," said Tom Ryan, Chairman, President, and Chief Executive Officer of CVS Corporation. "While these actions are beginning to yield results, improvements have been slower than anticipated. In light of this and the weakening economy, we are further increasing our promotional spend. We will continue to monitor our progress and the impact of these trends on the balance of the year."

This press release contains certain forward-looking statements that are subject to risks and uncertainties which could cause actual results to differ materially. For these statements, the company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The Company strongly recommends that you become familiar with the specific risks and uncertainties outlined under the caption "Cautionary Statement Concerning Forward-Looking Statements" in its Annual Report on Form 10-K for the fiscal year ended December 30, 2000 and in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2001.

CVS is America's #1 pharmacy dispensing more retail prescriptions in more stores than any other chain. With annual revenues of more than $20 billion, CVS has created innovative approaches to serve the healthcare needs of all of our customers through its more than 4,100 CVS/pharmacy stores; CVS ProCare, its specialty pharmacy business; CVS.com, its online pharmacy; and Pharmacare, its pharmacy benefit management company. General information about CVS is available through the Investor Relations portion of the Company's website, at http://www.CVS.com.

CONTACT: CVS Corporation Investor Contact: Nancy Christal, 914/722-4704 Media Contact: Todd Andrews, 401/770-5717