Essential to care

Q4FY2008 and FY2009E

Investor/Analyst Call

August 7, 2008

Exhibit 99.3

2

Forward-looking statements and

GAAP reconciliation

This

presentation

contains

forward-looking

statements

addressing

expectations,

prospects,

estimates

and

other

matters

that

are

dependent

upon

future

events

or

developments.

These

matters

are

subject

to

risks

and

uncertainties

that

could

cause

actual

results

to

differ

materially

from

those

projected,

anticipated

or

implied.

The

most

significant

of

these

uncertainties

are

described

in

Cardinal

Health's

Form

10-K,

Form

10-Q

and

Form

8-K

reports

(including

all

amendments

to

those

reports)

and

exhibits

to

those

reports,

and

include

(but

are

not

limited

to)

the

following:

uncertainties

regarding

the

decision

to

explore

the

separation

of

the

company’s

clinical

and

medical

products

businesses

and

the

impacts

of

such

decision

if

the

separation

is

accomplished;

competitive

pressures

in

Cardinal

Health's

various

lines

of

business;

the

loss

of

one

or

more

key

customer

or

supplier

relationships

or

changes

to

the

terms

of

those

relationships;

uncertainties

relating

to

the

timing

of

generic

or

branded

pharmaceutical

introductions

and

the

frequency

or

rate

of

branded

pharmaceutical

price

appreciation

or

generic

pharmaceutical

price

deflation;

changes

in

the

distribution

patterns

or

reimbursement

rates

for

healthcare

products

and/or

services;

the

results,

consequences,

effects

or

timing

of

any

inquiry

or

investigation

by

any

regulatory

authority

or

any

legal

or

administrative

proceedings;

future

actions

of

regulatory

bodies

or

government

authorities

relating

to

Cardinal

Health's

manufacturing

or

sale

of

products

and

other

costs

or

claims

that

could

arise

from

its

manufacturing,

compounding

or

repackaging

operations

or

from

its

other

services;

difficulties,

delays

or

additional

costs

in

implementing

the

restructuring

program

announced

on

July

8,

2008;

the

costs,

difficulties

and

uncertainties

related

to

the

integration

of

acquired

businesses;

conditions

in

the

pharmaceutical

market

and

general

economic

and

market

conditions.

This

presentation

reflects

management’s

views

as

of

August

7,

2008.

Except

to

the

extent

required

by

applicable

law,

Cardinal

Health

undertakes

no

obligation

to

update

or

revise

any

forward-looking

statement.

In

addition,

this

presentation

includes

non-GAAP

financial

measures.

Cardinal

Health

provides

definitions

and

reconciling

information

at

the

end

of

this

presentation

and

on

its

investor

relations

page

at

www.cardinalhealth.com.

A

transcript

of

the

conference

call

will

be

available

on

the

investor

relations

page

at

www.cardinalhealth.com.

3

Agenda

Opening remarks

Kerry Clark

Chairman and Chief Executive Officer

Financial overview

Jeff Henderson

Chief Financial Officer

HSCS Comments

George Barrett

Vice Chairman and CEO

Healthcare Supply Chain Services

CMP Comments

Dave Schlotterbeck

Vice

Chairman

and

CEO

Clinical and Medical Products

Q&A

4

Q4 and YEFY08 Results

*

*

*

*

*

*

5

Q4 FY2008 Financial Review  

$22,926

$543

$330

$0.92

$247

17%

($M)

3%

29%

39%

51%

%

Change

1

GAAP Basis

$568

$348

$0.97

18%

($M)

6%

1%

9%

%

Change

1

Non-GAAP Basis

1

% change over prior year quarter

Revenue

Operating earnings

Earnings from continuing ops

Diluted EPS from continuing ops

Operating cash flow

Return on equity

6

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

GAAP Consolidated

$543

$0.92

$421

$0.61

Special Items

$35

$0.06

$118

$0.28

Impairment Charges

& Other

($10)

($0.01)

($1)

--

Non-GAAP

Consolidated

$568

$0.97

$538

$0.89

Q4 FY 2008

Q4 FY 2007

Q4 FY2008 Operating Earnings and EPS

7

Healthcare Supply Chain Services

Analysis

Revenue

Segment Profit

Q4 FY08

($M)

19,556

303

Q4 FY07

($M)

1%

(15%)

%

Change

Revenue

Segment Profit

1,929

83

8%

(3)%

Pharmaceutical

Medical/Surgical

19,819

258

2,082

81

FY08

($M)

76,573

1,300

FY07

($M)

4%

(14%)

%

Change

79,284

1,122

Q4 FY08

($M)

Q4 FY07

($M)

%

Change

FY08

($M)

FY07

($M)

%

Change

7,514

318

8%

(5%)

8,084

303

8

Clinical and Medical Products

Analysis

Revenue

Segment Profit

500

58

46%

63%

MPT

CTS

Revenue

Segment Profit

756

144

3%

8%

727

95

780

156

Q4 FY08

($M)

Q4 FY07

($M)

%

Change

Q4 FY08

($M)

Q4 FY07

($M)

%

Change

FY08

($M)

FY07

($M)

%

Change

2,687

386

8%

29%

2,890

497

FY08

($M)

2,696

300

FY07

($M)

1,836

198

%

Change

47%

52%

9

Full Year FY08

Financial Review  

$91,091

$2,129

$1,325

$3.64

$1,559

18%

($M)

5%

55%

58%

76%

%

Change

1

GAAP Basis

$2,219

$1,385

$3.80

19%

($M)

3%

--

11%

%

Change

1

Non-GAAP Basis

1

% change over prior year quarter

Revenue

Operating earnings

Earnings from continuing ops

Diluted EPS from continuing ops

Operating cash flow

Return on equity

10

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

GAAP Consolidated

$2,129

$3.64

$1,374

$2.07

Special Items

$123

$0.21

$772

$1.31

Impairment Charges

& Other

($32)

($0.05)

$17

$0.04

Non-GAAP

Consolidated

$2,219

$3.80

$2,163

$3.42

FY 2008

FY 2007

Full Year FY08

Operating Earnings and EPS

11

Key Financial Value Drivers

FY2008

Balance sheet management

–

Days of inventory declined from 28 to 25 days Q4FY07 vs. Q4FY08

–

FY08 non-GAAP ROIC of 8.1%

Capital deployment

–

Repurchased $1.1B in FY08

–

Increased dividend by 17% to $0.14 per quarter in June 2008

Capital structure

–

Debt to total capital increased from 32% in Q4 FY07 to 33% in Q4

FY08

–

Net debt to capital

1

increased from 22% in Q4FY07 to 25% in Q4FY08

FY08 non-GAAP return on equity of approximately 19%

1

Non-GAAP financial measure

12

FY2009 Estimates / Assumptions

*

*

*

*

*

*

13

FY09 Financial Goals

>20%

>10%

Clinical and Medical Products (CMP)

Flat to (5%)

>6%

Healthcare Supply Chain Services (HSCS)

Profit

Growth

Revenue

Growth

Segment

$3.80 -

$3.95

Non-GAAP EPS¹:

6-7%

Total revenue growth:

August 7, 2008

1

Non-GAAP diluted earnings per share from continuing operations

14

FY09 Total Corporate Assumptions

August 7, 2008

361M –

362M

Diluted weighted average

shares outstanding

Approximately 34%

Non-GAAP effective tax rate

$180M -

$190M

Interest and other

NOTE:  This outlook assumes that the potential separation of the

Company’s clinical and medical products

businesses does not occur during fiscal 2009 and excludes any charges or significant expenses associated with the

potential separation.

15

FY09 Segment-Related Assumptions

August 7, 2008

Healthcare Supply Chain Services

Bulk revenue growth likely

to exceed non-bulk

Nuclear:  assumes generic event;

participation as distributor, not as

manufacturer

DEA settlement discussions

ongoing in H1

Risk-adjusted “basket”

of generic

launches

Expect recent pharma margin

erosion to moderate

Borschow

accretive

IT investments

16

FY09 Segment-Related Assumptions

August 7, 2008

Clinical and Medical Products

Enturia

accretive

Fully reserved for Alaris remediation,

resolved by CalYE08

Viasys synergy goals ahead of

schedule

R&D investments

17

FY09(E) Revenue Product Information

HSCS

CMP

ALL OTHER

•

Distribution of pharmaceutical, radiopharmaceutical & OTC products

•

Distribution of medical, surgical and laboratory products & medical procedure kits

•

Bulk v. non-bulk

•

Intravenous medication safety & infusion delivery systems

•

Medication & medical supply dispensing systems

•

Respiratory care products

•

Infection prevention products

•

Medical specialty products

•

Clinical intelligence solutions

•

Franchising and operating apothecary-style retail pharmacies

•

Pharmacy services

•

Medical access & specialty products

18

Healthcare Supply Chain Services

(HSCS)

*

*

*

*

*

*

19

HSCS:  Turnaround Plan

•

Focus on execution

•

More effectively segment our business to target

the right opportunities

•

Improve and simplify our generic programs and

better integrate them into overall offerings

•

Re-invigorate our value proposition

20

HSCS:  Deep Customer Segmentation

Aligning offerings

Suppliers

Customers

Retail Ind.

•

Pharmaceutical/

Distribution services

•

Pharmacy brands

•

Rx Purchasing

Programs

•

FirstScript

–

Customized

Autoshipment

to stock

new Brand or Generic

items fast

•

Front-end Purchasing

& Merchandising

•

Managed Care

Programs

•

Ordering / Inventory

Management

Chains/

Warehousing &

Non

•

Distribute /

operational

excellence

•

Ordering / inventory

management

•

Purchasing Solutions

•

SOURCE generics

(primary and back-up

formulary)

•

Home Health Care,

packaging,

FirstScript

•

Managed Care

Hospital

•

Patient Safety/

Clinical

Solutions

•

Pharma

Distribution.

•

Medication

Packaging

•

Cardinal

Assist

•

Ready Scan

•

Pharmacy

Automation

(Pyxis)

Generic

•

Market share

•

Launch speed

•

Contract mgt

•

Efficient reach to

every COT

•

AR / returns mgt

•

Centralized

shipping

•

Data reporting

Branded

•

Inventory mgt

•

Data reporting

•

High service

levels

•

Contract mgt

•

AR / returns mgt

•

Special handling

•

Centralized

shipping

•

Efficient reach

to every COT

21

Clinical and Medical Products

(CMP)

*

*

*

*

*

*

*

22

22

CMP:  Competitive Advantages

•

Global leader in medication safety and infusion systems

•

Largest U.S. hospital footprint in dispensing systems

•

Largest acute-care respiratory company worldwide

•

Leading provider of disposables used in surgical suite

•

Industry’s only enterprise-wide medication management

solution

•

Leader in hospital-acquired infection prevention

•

Leader in positive patient identification

23

23

CMP:  Winning Vision

Improve

Medication

Management

Enhance Infection

Prevention

•

Integrating our offers and knowledge to manage all medications

•

Uniquely positioned to improve safety & productivity

Minimize risk and

cost of procedures

Aligning with top hospital concerns to be a leading provider of products

and services for hospital safety & productivity

Help hospitals

identify patients at

risk

•

Established role and presence in the surgical suite

•

Expansion into the large respiratory market

•

Focus on protocol compliance and clinically differentiated products

•

Expanding our capability with high impact procedures

•

Tackling our customers latest concerns

•

Leading market offering in infection detection

•

Building our data to address top hospital concerns

24

Summary

*

*

*

*

*

*

*

25

FY 2009 Priorities

•

Resolve outstanding regulatory issues

•

Continue to invest in enhancing quality and

regulatory systems

•

Return HSCS to steady growth

•

Continue to invest in CMP growth

•

Complete integrations (Viasys, Enturia, Borschow)

Mission:  to make healthcare safer and more productive

Mission:  to make healthcare safer and more productive

Q&A

*

*

28

Q4FY08 Trailing Five Quarters

*

*

*

*

*

*

29

Healthcare Supply Chain Services 

Analysis:  Q4FY08

$258

$19,819

Q4FY08

$300

$19,894

Q3FY08

$258

$20,351

Q2FY08

(15)%

1%

Q4FY08/

Q4FY07

% change

$305

$303

Segment

Profit ($M)

19,221

$19,556

Revenue

($M)

Q1FY08

Q4FY07

Healthcare Supply Chain Services –

Pharmaceutical

$81

$2,082

Q4FY08

$93

$2,066

Q3FY08

$72

$2,015

Q2FY08

(3)%

8%

Q4FY08/

Q4FY07

% change

$58

$83

Segment

Profit ($M)

$1,921

$1,929

Revenue

($M)

Q1FY08

Q4FY07

Healthcare Supply Chain Services –

Medical

30

Clinical and Medical Products

Analysis: Q4FY08

$95

$727

Q4FY08

$80

$679

Q3FY08

$69

$667

Q2FY08

63%

46%

Q4FY08/

Q4FY07

% change

$57

$58

Segment

Profit ($M)

$623

$500

Revenue

($M)

Q1FY08

Q4FY07

Medical Products and Technologies

$156

$780

Q4FY08

$127

$747

Q3FY08

$116

$715

Q2FY08

8%

3%

Q4FY08/

Q4FY07

% change

$98

$144

Segment

Profit ($M)

$649

$756

Revenue

($M)

Q1FY08

Q4FY07

Clinical Technologies and Services

31

3-Year, Quarterly, Historical Financial Data

Recast in Current, Revised Structure

The following slides contain historical segment information that

reflect a change in the Company’s

reportable segments effective July 1, 2008.  Certain costs held at corporate have been allocated to the

segments under the new segment structure.  Further information regarding the new segments will be

included in the Company’s Form 10-Q for the quarter ending September 30, 2008 and subsequent periods.

*

*

*

*

32

Healthcare Supply Chain Services Segment

Analysis:  FY06 -

08

$1,392

$77,108

FY06

$382

$20,555

Q4FY06

$407

$329

$273

Segment

Profit ($M)

$19,579

$18,713

$18,260

Revenue

($M)

Q3FY06

Q2FY06

Q1FY06

$1,548

$83,948

FY07

$366

$21,444

Q4FY07

$452

$394

$335

Segment

Profit ($M)

$21,120

$21,079

$20,305

Revenue

($M)

Q3FY07

Q2FY07

Q1FY07

$1,363

$87,226

FY08

$324

$21,863

Q4FY08

$377

$315

$347

Segment

Profit ($M)

$21,923

$22,346

$21,093

Revenue

($M)

Q3FY08

Q2FY08

Q1FY08

33

Clinical and Medical Products Segment

Analysis:  FY06 -

08

$429

$3,102

FY06

$126

$850

Q4FY06

$116

$108

$79

Segment

Profit ($M)

$769

$756

$726

Revenue

($M)

Q3FY06

Q2FY06

Q1FY06

$535

$3,542

FY07

$191

$1,017

Q4FY07

$132

$127

$86

Segment

Profit ($M)

$883

$862

$779

Revenue

($M)

Q3FY07

Q2FY07

Q1FY07

$735

$4,606

FY08

$229

$1,270

Q4FY08

$190

$171

$145

Segment

Profit ($M)

$1,170

$1,133

$1,032

Revenue

($M)

Q3FY08

Q2FY08

Q1FY08

34

All Other Segment

Analysis:  FY06 -

08

$110

$1,138

FY06

$26

$282

Q4FY06

$28

$28

$28

Segment

Profit ($M)

$291

$288

$278

Revenue

($M)

Q3FY06

Q2FY06

Q1FY06

$107

$1,151

FY07

$25

$286

Q4FY07

$26

$27

$28

Segment

Profit ($M)

$290

$295

$280

Revenue

($M)

Q3FY07

Q2FY07

Q1FY07

$101

$1,190

FY08

$27

$288

Q4FY08

$26

$25

$22

Segment

Profit ($M)

$308

$301

$294

Revenue

($M)

Q3FY08

Q2FY08

Q1FY08

35

GAAP to Non-GAAP

Reconciliation Statements

*

*

*

*

*

*

*

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter 2008											Fiscal Year 2008
(in millions, except per Common Share amounts)	GAAP			Special Items		Impairment Charges and Other			Non-GAAP			GAAP			Special Items		Impairment Charges and Other			Non-GAAP
Operating Earnings
Amount	$	543		$	35	$	(10	)	$	568		$	2,129		$	123	$	(32	)	$	2,219
Growth Rate		29	%							6	%		55	%							3	%
Provision for Income Taxes	$	166		$	13	$	(6	)	$	173		$	633		$	45	$	(14	)	$	663
Earnings from Continuing Operations
Amount	$	330		$	22	$	(4	)	$	348		$	1,324		$	78	$	(18	)	$	1,385
Growth Rate		39	%							1	%		58	%							—
Diluted EPS from Continuing Operations
Amount	$	0.92		$	0.06	$	(0.01	)	$	0.97		$	3.64		$	0.21	$	(0.05	)	$	3.80
Growth Rate		51	%							9	%		76	%							11	%

	Fourth Quarter 2007											Fiscal Year 2007
	GAAP			Special Items		Impairment Charges and Other			Non-GAAP			GAAP			Special Items		Impairment Charges and Other		Non-GAAP
Operating Earnings
Amount	$	421		$	118	$	(1	)	$	538		$	1,374		$	772	$	17	$	2,163
Growth Rate		(14	)%							3	%		(26	)%						12	%
Provision for Income Taxes	$	164		$	10		—		$	174		$	413		$	243	$	2	$	657
Earnings from Continuing Operations
Amount	$	238		$	108		—		$	345		$	840		$	529	$	16	$	1,384
Growth Rate		(22	)%							5	%		(28	)%						13	%
Diluted EPS from Continuing Operations
Amount	$	0.61		$	0.28		—		$	0.89		$	2.07		$	1.31	$	0.04	$	3.42
Growth Rate		(15	)%							14	%		(24	)%						20	%

The sum of the components may not equal the total due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter						Fiscal Year
(in millions)	2008			2007			2008			2007
GAAP Return on Equity		17.3	%		47.3	%		17.8	%		23.5	%
Non-GAAP Return on Equity
Net earnings	$	326.6		$	902.2		$	1,309.2		$	1,931.1
Special items, net of tax, in continuing operations		21.8			107.8			77.7			528.9
Special items, net of tax, in discontinued operations		—			—			—			4.4
(Gain)/loss on sale of PTS, net of tax, in discontinued operations		—			(679.5	)		7.6			(1,072.4	)
Adjusted net earnings	$	348.4		$	330.5		$	1,394.5		$	1,392.0
Annualized	$	1,393.6		$	1,322.0		$	1,394.5		$	1,392.0
Divided by average shareholders’ equity 1	$	7,574.7		$	7,623.2		$	7,340.5		$	8,213.2
Non-GAAP return on equity		18.4	%		17.3	%		19.0	%		16.9	%
	Fourth Quarter						Fiscal Year
(in millions)	2008			2007			2008			2007
GAAP Return on Invested Capital		6.90	%		18.43	%		7.01	%		9.38	%
Non-GAAP Return on Invested Capital
Net earnings	$	326.6		$	902.2		$	1,309.2		$	1,931.1
Special items, net of tax, in continuing operations		21.8			107.8			77.7			528.9
Special items, net of tax, in discontinued operations		—			—			—			4.4
Interest expense and other, net of tax		30.4			12.2			109.7			77.7
(Gain)/loss on sale of PTS, net of tax, in discontinued operations		—			(679.5	)		7.6			(1,072.4	)
Adjusted net earnings	$	378.8		$	342.7		$	1,504.2		$	1,469.7
Annualized	$	1,515.2		$	1,370.8		$	1,504.2		$	1,469.7
Divided by average total invested capital 2	$	18,940.1		$	19,583.8		$	18,665.9		$	20,580.7
Non-GAAP return on invested capital		8.00	%		7.00	%		8.06	%		7.14	%

¹ The average shareholders’ equity shown above is calculated using the average of the prior and current quarters except for fiscal year which is calculated as the average of shareholders’ equity at the end of the prior years’ fourth quarter plus each of the current year quarters.

² Total invested capital is calculated as the sum of the current portion of long-term obligations and other short-term borrowings, long-term obligations, current portion of long-term obligations and other short-term borrowings in discontinued operations, long-term obligations in discontinued operations, total shareholders’ equity and unrecorded goodwill. The average total invested capital is calculated using the average of total invested capital at the end of the prior and current quarters except for year-to-date which is calculated as the average of the prior years’ fourth quarter plus each of the current year quarters. Unrecorded goodwill is $7.5 billion for all periods presented. Current portion of long-term obligations and other short-term borrowings in discontinued operations, and long-term obligations in discontinued operations were $59.2 million, $46.6 million, $41.3 million and $12.3 million at June 30, 2006, September 30, 2006, December 31, 2006 and March 31, 2007, respectively.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter						Fiscal Year
(in millions)	2008			2007			2008			2007
GAAP Effective Tax Rate from Continuing Operations		33.4	%		40.8	%		32.3	%		33.0	%
Non-GAAP Effective Tax Rate from Continuing Operations
Earnings before income taxes and discontinued operations	$	495.8		$	401.4		$	1,957.3		$	1,252.3
Special items		34.9			118.2			122.6			772.0
Adjusted earnings before income taxes and discontinued operations	$	530.7		$	519.6		$	2,079.9		$	2,024.3
Provision for income taxes	$	165.6		$	163.7		$	632.8		$	412.6
Special items tax benefit		13.1			10.4			44.9			243.1
Adjusted provision for income taxes	$	178.7		$	174.1		$	677.7		$	655.7
Non-GAAP effective tax rate from continuing operations		33.7	%		33.5	%		32.6	%		32.4	%
	Fourth Quarter
	2008			2007
Debt to Total Capital		33	%		32	%
Net Debt to Capital
Current portion of long-term obligations and other short-term borrowings	$	159.0		$	16.0
Long-term obligations, less current portion and other short-term borrowings		3,687.4			3,457.3
Debt	$	3,846.4		$	3,473.3
Cash and equivalents		(1,291.3	)		(1,308.8	)
Short-term investments available for sale		—			(132.0	)
Net debt	$	2,555.1		$	2,032.5
Total shareholders’ equity	$	7,756.1		$	7,376.9
Capital	$	10,311.2		$	9,409.4
Net debt to capital		25	%		22	%

Forward-Looking Non-GAAP Financial Measures

The Company presents non-GAAP earnings from continuing operations and non-GAAP effective tax rate from continuing operations (and presentations derived from these financial measures) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are earnings from continuing operations and effective tax rate from continuing operations. The Company is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most comparable forward-looking GAAP measures because the Company cannot reliably forecast special items and impairment charges and other, which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact the Company’s future financial results.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter
(in millions)	2008			2007
Clinical Technologies and Services revenue growth		3	%
Clinical Technologies and Services revenue	$	779.8		$	755.8
Less: Pharmacy Services business unit revenue		(194.8	)		(218.7	)
Clinical Technologies and Services revenue excluding Pharmacy Services business unit revenue	$	585.0		$	537.1
Clinical Technologies and Services revenue growth excluding Pharmacy Services business unit revenue		9	%

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter					Fiscal Year
(in millions)	2008			2007		2008			2007
HEALTHCARE SUPPLY CHAIN SERVICES
Revenue
Pharmaceutical	$	19,819		$	19,556	$	79,284		$	76,573
Medical		2,082			1,929		8,084			7,514
Total Sector Revenue	$	21,901		$	21,485	$	87,368		$	84,087
Sector Growth Rate		2	%				4	%
Segment Profit
Pharmaceutical	$	258		$	303	$	1,122		$	1,300
Medical		81			83		303			318
Total Sector Profit	$	339		$	386	$	1,425		$	1,618
Sector Growth Rate		(12	)%				(12	)%
	Fourth Quarter					Fiscal Year
(in millions)	2008			2007		2008			2007
CLINICAL AND MEDICAL PRODUCTS
Revenue
Clinical Technologies and Services	$	780		$	756	$	2,890		$	2,687
Medical Products and Technologies		727			500		2,696			1,836
Total Sector Revenue	$	1,507		$	1,256	$	5,586		$	4,523
Sector Growth Rate		20	%				24	%
Segment Profit
Clinical Technologies and Services	$	156		$	144	$	497		$	386
Medical Products and Technologies		95			58		300			198
Total Sector Profit	$	251		$	202	$	797		$	584
Sector Growth Rate		24	%				36	%

The results above are reported under the Company’s segment reporting structure as it existed at June 30, 2008

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)

HEALTHCARE SUPPLY CHAIN SERVICES

Pharmaceutical

	Fourth Quarter Fiscal 2008												Fourth Quarter Fiscal 2007
	April		May		June		Total			Fiscal 2008			April		May		June		Total			Fiscal 2007
Economic Profit Margin
Segment profit							$	258.4		$	1,121.6								$	303.4		$	1,299.8
Effective tax rate from continuing operations								36.7	%		36.7	%								35.1	%		35.1	%
Net operating earnings, after-tax (NOPAT)							$	163.6		$	710.2								$	197.0		$	844.1
Total assets	$	11,675.5	$	11,586.4	$	11,038.5							$	11,494.8	$	11,849.6	$	11,705.2
Less: assets from discontinued operations		—		—		—								—		—		—
Less: accounts payable		7,696.3		8,004.8		7,470.4								7,805.4		7,921.3		8,412.5
Less: other accrued liabilities		1,134.4		1,057.4		1,074.4								1,082.4		1,202.4		1,160.2
Less: liabilities from businesses held for sale		—		—		—								—		—		—
Less: deferred income taxes and other liabilities		85.0		68.2		44.3								87.7		88.0		36.1
Less: goodwill and other intangibles, net		1,358.1		1,356.8		1,346.1								1,351.9		1,351.3		1,345.6
Less: cash and equivalents		42.6		38.9		12.3								127.7		67.9		32.8
Less: short-term investments available for sale		—		—		—								—		—		—
Tangible capital	$	1,359.1	$	1,060.3	$	1,091.0	$	1,170.1		$	1,167.0		$	1,039.7	$	1,218.7	$	718.0	$	992.1		$	1,221.7
Multiplied by weighted average cost of capital								2.3	%		9.0	%								2.3	%		9.0	%
Capital charge							$	26.9		$	105.0								$	22.8		$	110.0
Economic profit							$	136.7		$	605.2								$	174.2		$	734.1
Revenue							$	19,818.8		$	79,284.2								$	19,556.0		$	76,572.8
Economic profit margin								0.69	%		0.76	%								0.89	%		0.96	%
HEALTHCARE SUPPLY CHAIN SERVICES Medical
	Fourth Quarter Fiscal 2008												Fourth Quarter Fiscal 2007
	April		May		June		Total			Fiscal 2008			April		May		June		Total			Fiscal 2007
Economic Profit Margin
Segment profit							$	80.9		$	303.0								$	83.3		$	318.1
Effective tax rate from continuing operations								28.5	%		28.5	%								29.8	%		29.8	%
Net operating earnings, after-tax (NOPAT)							$	57.8		$	216.5								$	58.5		$	223.2
Total assets	$	2,482.9	$	2,511.2	$	2,499.5							$	2,480.4	$	2,396.8	$	2,472.9
Less: assets from discontinued operations		—		—		—								—		—		—
Less: accounts payable		609.0		574.5		572.5								532.3		523.2		558.0
Less: other accrued liabilities		62.1		58.2		53.0								48.7		76.5		35.8
Less: liabilities from businesses held for sale		—		—		—								—		—		—
Less: deferred income taxes and other liabilities		55.9		71.9		71.9								63.6		56.6		59.8
Less: goodwill and other intangibles, net		387.5		394.2		393.0								379.6		381.2		385.1
Less: cash and equivalents		16.4		10.2		10.7								16.5		3.5		25.3
Less: short-term investments available for sale		—		—		—								—		—		—
Tangible capital	$	1,352.0	$	1,402.2	$	1,398.4	$	1,384.2		$	1,441.7		$	1,439.7	$	1,355.8	$	1,408.9	$	1,401.5		$	1,460.8
Multiplied by weighted average cost of capital								2.3	%		9.0	%								2.3	%		9.0	%
Capital charge							$	31.8		$	129.8								$	32.2		$	131.5
Economic profit							$	26.0		$	86.7								$	26.3		$	91.7
Revenue							$	2,082.1		$	8,083.6								$	1,928.5		$	7,513.9
Economic profit margin								1.25	%		1.07	%								1.36	%		1.22	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal the total due to rounding

⁽³⁾ Healthcare Supply Chain Services—Pharmaceutical Tangible Capital calculated for both current and prior fiscal year includes an allocation of payables previously held at Corporate to more accurately reflect the payable balance of the segment.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

DEFINITIONS

GAAP

Debt: long-term obligations plus short-term borrowings

Debt to Total Capital: debt divided by (debt plus total shareholders’ equity)

Diluted EPS from Continuing Operations: earnings from continuing operations divided by diluted weighted average shares outstanding

Effective Tax Rate from Continuing Operations: provision for income taxes divided by earnings before income taxes and discontinued operations

Operating Cash Flow: net cash provided by / (used in) operating activities from continuing operations

Segment Profit: segment revenue minus (segment cost of products sold and segment selling, general and administrative expenses)

Segment Profit Margin: segment profit divided by segment revenue

Segment Profit Mix: segment profit divided by total segment profit for all segments

Return on Equity: annualized net earnings divided by average shareholders’ equity

Return on Invested Capital: annualized net earnings divided by (average total shareholders’ equity plus debt plus unrecorded goodwill)

Revenue Mix: segment revenue divided by total segment revenue for all segments

NON-GAAP

Net Debt to Capital: net debt divided by (net debt plus total shareholders’ equity)

Net Debt: debt minus (cash and equivalents and short-term investments available for sale)

Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding

Non-GAAP Diluted EPS from Continuing Operations Growth Rate: (current period non-GAAP diluted EPS from continuing operations minus prior period non-GAAP diluted EPS from continuing operations) divided by prior period non-GAAP diluted EPS from continuing operations

Non-GAAP Earnings from Continuing Operations: earnings from continuing operations excluding special items and impairment charges and other, both net of tax

Non-GAAP Earnings from Continuing Operations Growth Rate: (current period non-GAAP earnings from continuing operations minus prior period non-GAAP earnings from continuing operations) divided by prior period non-GAAP earnings from continuing operations

Non-GAAP Effective Tax Rate from Continuing Operations: (provision for income taxes adjusted for special items) divided by (earnings before income taxes and discontinued operations adjusted for special items)

Non-GAAP Operating Earnings: operating earnings excluding special items and impairment charges and other

Non-GAAP Operating Earnings Growth Rate: (current period non-GAAP operating earnings minus prior period non-GAAP operating earnings) divided by prior period non-GAAP operating earnings

Non-GAAP Return on Equity: (annualized current period net earnings plus special items minus special items tax benefit) divided by average shareholders’ equity ¹

Non-GAAP Return on Invested Capital: (annualized net earnings plus special items minus special items tax benefit plus interest expense and other) divided by (average total shareholders’ equity plus debt plus unrecorded goodwill) ¹

¹ For the three months ended June 30, 2007, the numerator in calculating this non-GAAP financial measure also excludes the $679.5 million gain, net of tax, on the sale of PTS recorded in discontinued operations in the fourth quarter of fiscal 2007. For the fiscal year ended June 30, 2008 and 2007 the numerator in calculating this non-GAAP financial measure also excludes the respective $7.6 million and $(1,072.4) million (gain) / loss, net of tax, on the sale of PTS recorded in discontinued operations.