Medco is a registered trademark of Medco Health Solutions, Inc.© 2005 Medco Health Solutions, Inc. All rights reserved.

Why the World’s Largest Automated Pharmacy Picked Indianapolis

Jeff Tyler

Senior Director, Corporate Real Estate

Medco Health Solutions, Inc.

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© 2005 Medco Health Solutions, Inc. All rights reserved.

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© 2007 Medco Health Solutions, Inc. All rights reserved.

But the journey started years before.

I n November 2007, Medco announced it will build the world’s largest automated pharmacy in I ndiana…

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© 2005 Medco Health Solutions, Inc. All rights reserved.

The Road To Indy…

Starting with “lessons learned” from our second automated pharmacy project in 2003… Identified 200 areas for improvement for the Infrastructure Team

Corporate Real Estate enhanced our search ability Partnerships with key stakeholders

– Logistics, Regulatory, Tax, Human Resources, Safety, Security, Finance, Public Relations, Facilities & Engineering

– CBRE Site Selection/Incentives Consultant Established State/City Section Matrices for rapid action Detailed Selection Criteria are constantly refined and updated

80 city search begun 2Q 2007

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© 2005 Medco Health Solutions, Inc. All rights reserved.

Correlation to the where our members are…Based on Rx Distribution by State, to current mail members

“Sweet Spot”

43.7% of Mail Volume

IL, IN, KY, MI, MO, NY, OH, PA, WI

5 Shortlist Cities

Cost Factors Shipping/LogisticsCorp Income TaxRph/Tech LaborWorkers Comp

Quality Factors Destination AppealRegulatory EnvironLabor Quality/AvailOperating Environ

ChicagoCincinnatiDallasIndianapolisLouisville

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© 2005 Medco Health Solutions, Inc. All rights reserved.

Toured 5 Cities & 77 Sites

#1 in annual cost savings

#1 in labor availability, quality workforce and affordable wages Two pharmacy schools = great pipeline (more Indiana grads than available Rph jobs) Temp-to-perm hiring is norm for distribution labor

Highly motivated local and state governments Most helpful and effective economic development staff Most impressive effort by Governor and staff

Favorable regulatory environment, motivated Board of Pharmacy BOP executive director part of state team & actively engaged from the start BOP very accessible (their offices are right in town)

Excellent real estate options Many viable build-to-suit Sites 3 out of 4 Shortlisted Sites very close in cost

Indianapolis, IN is the clear choice…

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© 2005 Medco Health Solutions, Inc. All rights reserved.

Part of new 1,709 acre planned community

Medco siteMedco site

AllPoints at AnsonAllPoints at Anson

- 22 Minutes south to Airport- 22 Minutes south to Airport

- 25 Minutes south to Downtown25 Minutes south to Downtown

- 35 Minutes north to Purdue Univ.35 Minutes north to Purdue Univ.

- New residential & commercial centerNew residential & commercial center

- New roads, infrastructure, retail, parksNew roads, infrastructure, retail, parks

- Future hotels, fire/rescue, medical on siteFuture hotels, fire/rescue, medical on site

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Professional Demographics

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