Exhibit 99.1

Longs Drug Stores Corporation Reports Second Quarter Results

WALNUT CREEK, California (August 20, 2008) – Longs Drug Stores Corporation (NYSE: LDG) today reported preliminary income from continuing operations for the second quarter ended July 31, 2008 of $27.5 million, or $0.76 per diluted share, including $0.7 million of after-tax charges, or $0.02 per diluted share, related to provisions for store closures and asset impairments and legal reserves, a 6.8 percent increase compared with income from continuing operations for the second quarter ended July 26, 2007 of $25.7 million, or $0.67 per diluted share.

SECOND QUARTER

Income

Income from continuing operations for the second quarter ended July 31, 2008 was $27.5 million, or $0.76 per diluted share, a 6.8 percent increase compared with income from continuing operations for the second quarter ended July 26, 2007 of $25.7 million, or $0.67 per diluted share. Results for the quarter ended July 31, 2008 included $0.7 million of after-tax charges, or $0.02 per diluted share, related to provisions for store closures and asset impairments and legal reserves.

Revenues

Total revenues of $1.33 billion for the thirteen weeks ended July 31, 2008 were 4.6 percent higher than the $1.27 billion reported for the thirteen weeks ended July 26, 2007.

Retail drug store sales increased 0.5 percent to $1.20 billion for the thirteen weeks ended July 31, 2008. Same-store sales decreased 1.1 percent with pharmacy same-store sales decreasing 0.6 percent and front-end same-store sales decreasing 1.6 percent. Pharmacy sales were 51.6 percent of retail drug store sales during the period, compared with 51.3 percent a year ago.

Pharmacy benefit services revenues increased 66.3 percent to $131.3 million from $79.0 million in the comparable period last year. Prescription drug plan revenues were $110.9 million compared with $65.7 million last year and pharmacy benefit management revenues were $20.4 million compared with $13.3 million a year ago.

Retail Drug Store Gross Profit

Retail drug store gross profit for the second quarter ended July 31, 2008 was $320.2 million, or 26.7 percent of retail drug store sales, compared with $314.5 million, or 26.3 percent of retail drug store sales, last year. The increase in gross profit as a percent of sales was primarily due to higher generic utilization and improved inventory management, partially offset by changes in the sales mix reflecting increasing price sensitivity among consumers.

The LIFO charge for the second quarter ended July 31, 2008 was $4.0 million compared with $2.0 million in the second quarter last year.

Prescription Drug Plan Gross Profit

Prescription drug plan gross profit for the second quarter ended July 31, 2008 was $14.4 million, or 13.0 percent of prescription drug plan revenues, compared with $11.5 million, or 17.5 percent of prescription drug plan revenues, last year. As expected, the lower gross profit margin rate on increased revenues reflects the Company’s bids submitted for the 2008 plan year.

Operating and Administrative Expenses

Operating and administrative expenses for the second quarter ended July 31, 2008 were $307.4 million, or 23.1 percent of revenues, compared with $295.0 million, or 23.1 percent of revenues, last year. The flat rate compared with last year reflects increased leverage on higher pharmacy benefit services revenues, offset by increased new store activity and reduced leverage on retail drug store sales.

Operating Income

Consolidated operating income for the second quarter ended July 31, 2008 was $46.5 million, or 3.5 percent of revenues. Operating income for the second quarter last year was $44.3 million, or 3.5 percent of revenues.

Retail drug store operating income was $31.6 million, or 2.6 percent of retail drug store sales, compared with $33.4 million, or 2.8 percent of sales last year. Pharmacy benefit services operating income was $14.9 million, or 11.4 percent of pharmacy benefit services revenues, compared with $10.9 million, or 13.8 percent of pharmacy benefit services revenues last year.

FIRST SIX MONTHS

Income

Income from continuing operations for the 26 weeks ended July 31, 2008 was $50.6 million, or $1.40 per diluted share, compared with income from continuing operations for the 26 weeks ended July 26, 2007 of $41.8 million, or $1.09 per diluted share, including $5.8 million of after-tax charges related to the disposition of stores.

Revenues

Total revenues of $2.74 billion for the 26 weeks ended July 31, 2008 were 6.5 percent higher than the $2.57 billion reported for the 26 weeks ended July 26, 2007.

Retail drug store sales increased 1.7 percent to $2.42 billion from $2.38 billion in the comparable period last year. Same-store sales decreased 0.1 percent with pharmacy same-store sales flat with last year and front-end same-store sales decreasing 0.1 percent. Pharmacy sales were 52.0 percent of retail drug store sales during the period, compared with 51.8 percent a year ago.

Pharmacy benefit services revenues increased 66.8 percent to $318.6 million from $191.0 million in the comparable period last year. Prescription drug plan revenues were $278.0 million compared with $162.2 million last year and pharmacy benefit management revenues were $40.6 million compared with $28.7 million a year ago.

Retail Drug Store Gross Profit

Retail drug store gross profit for the 26 weeks ended July 31, 2008 was $645.4 million, or 26.7 percent of retail drug store sales, compared with $618.4 million, or 26.0 percent of retail drug store sales, last year. The increase in gross profit as a percent of sales was primarily due to higher generic utilization, increased self-distribution of front-end merchandise and improved inventory management, partially offset by changes in the sales mix reflecting increasing price sensitivity among consumers.

The LIFO charge for the 26 weeks ended July 31, 2008 was $7.5 million compared with $5.0 million a year ago.

Prescription Drug Plan Gross Profit

Prescription drug plan gross profit for the 26 weeks ended July 31, 2008 was $18.4 million, or 6.6 percent of prescription drug plan revenues, compared with $15.6 million, or 9.6 percent of prescription drug plan revenues, last year. As expected, the lower gross profit margin rate on increased revenues reflects the Company’s bids submitted for the 2008 plan year.

Operating and Administrative Expenses

Operating and administrative expenses for the 26 weeks ended July 31, 2008 were $617.0 million, or 22.5 percent of revenues, compared with $581.3 million, or 22.6 percent of revenues, last year. The decrease in the expense rate reflects increased leverage on higher pharmacy benefit services revenues, partially offset by increased new store activity and reduced leverage on retail drug store sales.

Operating Income

Consolidated operating income for the 26 weeks ended July 31, 2008 was $86.0 million, or 3.1 percent of revenues. Operating income for the 26 weeks ended July 26, 2007 was $72.3 million, or 2.8 percent of revenues, including a $9.6 million pre-tax charge related to the disposition of stores.

Retail drug store operating income was $66.6 million, or 2.8 percent of retail drug store sales, compared with $56.8 million, or 2.4 percent of sales last year, including the charge related to the disposition of stores. Pharmacy benefit services operating income was $19.4 million, or 6.1 percent of pharmacy benefit services revenues, compared with $15.4 million, or 8.1 percent of pharmacy benefit services revenues last year.

MANAGEMENT OUTLOOK

In light of the Company’s announced transaction with CVS Caremark Corporation, the Company will not be including management outlook during the pendency of such transaction.

FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements relate to, among other things, expected financial results for fiscal year 2009, capital expenditures, progress on strategic initiatives, opening, relocating and remodeling of stores, profits from prescription drug plans, performance of RxAmerica, and are indicated by such words as “will,” “expects,” “estimates,” “goals,” “plans” or similar words. These statements are based on the Company’s current plans and expectations and involve risks and uncertainties that could cause actual events and results to vary materially from those contemplated by such statements. Risks and uncertainties relate to, among other things, CVS Caremark Corporation’s proposed acquisition of the Company, changing market conditions in the overall and regional economy and in the retail industry, the availability and cost of real estate, construction costs and delays, labor unrest, natural or manmade disasters, competition, maintaining satisfactory relationships with vendors, changes in applicable law or in the interpretation of applicable law by regulatory agencies or by legal, accounting or other professional advisors, or by the Company, and other factors described from time to time in the Company’s news releases and in its annual, quarterly and other reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended January 31, 2008. Please refer to such filings for a further discussion of these risks and uncertainties. Undue reliance should not be placed on forward-looking statements which speak only as of the date of this news release. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this news release.

ABOUT THE COMPANY

Headquartered in Walnut Creek, California, Longs Drug Stores Corporation (NYSE: LDG) is one of the most recognized retail drug store chains on the West Coast and in Hawaii. The Company operates 521 retail pharmacies and offers a wide assortment of merchandise focusing on health, wellness, beauty and convenience. Longs also provides pharmacy benefit management services and Medicare beneficiary prescription drug plans through its wholly-owned subsidiary, RxAmerica, LLC. Additional information about Longs and its services is available at www.longs.com and more information about RxAmerica is available at www.rxamerica.com.

Condensed Consolidated Income Statements (unaudited)

	For the 13 weeks ended						For the 26 weeks ended
	July 31, 2008			July 26, 2007			July 31, 2008			July 26, 2007
	Thousands Except Per Share Amounts
Revenues:
Retail drug store sales	$	1,201,468		$	1,195,591		$	2,421,113		$	2,380,602
Pharmacy benefit services revenues		131,269			78,958			318,605			190,957
Total revenues		1,332,737			1,274,549			2,739,718			2,571,559
Costs and expenses:
Cost of retail drug store sales		881,268			881,118			1,775,745			1,762,177
Prescription drug plan benefit costs		96,500			54,174			259,589			146,670
Operating and administrative expenses		307,388			295,030			617,049			581,300
Legal settlements and other disputes, net		500			(431	)		500			(431	)
Provision for store closures and asset impairments, net		599			371			816			9,586
Operating income		46,482			44,287			86,019			72,257
Interest expense		2,786			1,772			5,572			3,448
Interest income		(178	)		(282	)		(433	)		(478	)
Income from continuing operations before income taxes		43,874			42,797			80,880			69,287
Income taxes		16,377			17,059			30,300			27,523
Income from continuing operations		27,497			25,738			50,580			41,764
Income (loss) from discontinued operations, net of tax		—			869			456			(2,119	)
Net income	$	27,497		$	26,607		$	51,036		$	39,645
Earnings per common share:
Basic:
Income from continuing operations	$	0.78		$	0.69		$	1.42		$	1.11
Income (loss) from discontinued operations		—			0.02			0.02			(0.05	)
Net income		0.78			0.71			1.44			1.06
Diluted:
Income from continuing operations	$	0.76		$	0.67		$	1.40		$	1.09
Income (loss) from discontinued operations		—			0.02			0.01			(0.06	)
Net income		0.76			0.69			1.41			1.03
Dividends per common share	$	0.14		$	0.14		$	0.28		$	0.28
Weighted average number of shares outstanding:
Basic		35,350			37,417			35,553			37,469
Diluted		36,062			38,326			36,252			38,412
Number of stores in continuing operations, beginning of period		516			487			510			486
Stores opened		4			2			6			3
Stores acquired		2			6			7			12
Stores closed		(1	)		(3	)		(2	)		(9	)
Number of stores in continuing operations, end of period		521			492			521			492
Number of stores in discontinued operations, beginning of period		—			13			—			23
Stores opened		—			—			—			—
Stores acquired		—			—			—			—
Stores closed		—			(13	)		—			(23	)
Number of stores in discontinued operations, end of period		—			—			—			—
Store relocations		—			—			—			1

Condensed Consolidated Balance Sheets (unaudited)

	July 31, 2008		January 31, 2008		July 26, 2007
	Thousands Except Share Information
Assets
Current Assets:
Cash and cash equivalents	$	26,867	$	27,019	$	24,463
Accounts receivable, net		433,828		334,972		301,157
Merchandise inventories, net		465,981		510,482		494,473
Deferred income taxes		62,611		64,500		59,985
Prepaid expenses and other current assets		23,823		22,043		23,280
Assets held for sale		4,173		4,173		4,177
Total current assets		1,017,283		963,189		907,535
Property:
Land		119,312		116,564		113,279
Buildings and leasehold improvements		755,504		725,930		692,893
Equipment and fixtures		645,383		628,556		612,429
Total		1,520,199		1,471,050		1,418,601
Less accumulated depreciation		752,940		715,682		704,086
Property, net		767,259		755,368		714,515
Goodwill		84,394		84,394		84,450
Intangible assets, net		32,350		32,240		25,775
Other non-current assets		11,419		11,525		5,340
Total	$	1,912,705	$	1,846,716	$	1,737,615
Liabilities and Stockholders’ Equity
Current Liabilities:
Trade accounts payable	$	261,973	$	273,953	$	270,740
Pharmacy benefits payable		254,273		176,829		123,475
Accrued employee compensation and benefits		104,350		120,458		120,118
Taxes payable		31,604		58,998		54,383
Other accrued expenses		64,426		63,110		66,769
Current maturities of debt		36,727		36,727		6,727
Total current liabilities		753,353		730,075		642,212
Long-term debt		205,636		183,364		123,364
Deferred income taxes and other long-term liabilities		100,228		105,352		120,229
Total liabilities		1,059,217		1,018,791		885,805
Commitments and Contingencies
Stockholders’ Equity:
Common stock: par value $0.50 per share, 120,000,000 shares authorized, 35,908,000, 36,204,000 and 37,760,000 shares outstanding		17,954		18,102		18,880
Additional capital		303,982		288,385		283,448
Retained earnings		531,552		521,438		549,482
Total stockholders’ equity		853,488		827,925		851,810
Total	$	1,912,705	$	1,846,716	$	1,737,615

Condensed Statements of Consolidated Cash Flows (unaudited)

	For the 26 weeks ended
	July 31, 2008			July 26, 2007
	Thousands
Operating Activities:
Net income	$	51,036		$	39,645
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		51,436			46,543
Provision for store closures and asset impairments, net		(21	)		5,772
Deferred income taxes and other		(2,543	)		(3,968	)
Stock awards and options, net		8,793			14,162
Excess tax benefits related to stock awards and options		(1,030	)		(6,570	)
Common stock contribution to benefit plan		13,784			10,224
Changes in assets and liabilities:
Accounts receivable		(68,484	)		(12,492	)
Merchandise inventories		45,777			(5,403	)
Other assets		(1,674	)		(2,082	)
Current liabilities and other		23,298			(8,044	)
Net cash provided by operating activities		120,372			77,787
Investing Activities:
Capital expenditures		(61,332	)		(67,059	)
Acquisitions		(4,931	)		(12,021	)
Proceeds from dispositions of property and intangible assets		941			19,848
Net cash used in investing activities		(65,322	)		(59,232	)
Financing Activities:
Proceeds from revolving line of credit borrowings, net		25,000			8,000
Repayments of private placement notes		(2,728	)		(2,727	)
Repurchase of common stock		(39,260	)		(29,994	)
Proceeds from exercise of stock options		3,580			13,356
Dividend payments		(10,127	)		(10,614	)
Medicare Part D subsidy receipts (disbursements), net		(30,372	)		(5,937	)
Excess tax benefits related to stock awards and options		1,030			6,570
Other		(2,325	)		(342	)
Net cash used in financing activities		(55,202	)		(21,688	)
Decrease in cash and cash equivalents		(152	)		(3,133	)
Cash and cash equivalents at beginning of period		27,019			27,596
Cash and cash equivalents at end of period	$	26,867		$	24,463
Supplemental disclosure of cash flow information:
Cash paid for interest, net of amounts capitalized	$	5,348		$	3,476
Cash paid for income taxes		44,663			16,402

Condensed Statements of Consolidated Stockholders’ Equity

Thousands except per share amounts

	Common Stock					Additional Capital			Retained Earnings			Total Stockholders’ Equity
	Shares		Amount
Balance at January 25, 2007	37,406			18,703			250,113			546,741			815,557
Cumulative effect of accounting change (Note 2)										(526	)		(526	)
Net income										96,201			96,201
Dividends ($.56 per share)										(21,183	)		(21,183	)
Stock contributions to employee retirement plan	278			139			13,296						13,435
Stock awards, net of forfeitures	144			72			(5,556	)					(5,484	)
Stock-based compensation expense							19,926						19,926
Stock options exercised	850			425			19,268						19,693
Tax benefit related to stock awards and stock options, net							10,094						10,094
Repurchase of common stock	(2,474	)		(1,237	)		(18,756	)		(99,795	)		(119,788	)
Balance at January 31, 2008	36,204		$	18,102		$	288,385		$	521,438		$	827,925
Net income										51,036			51,036
Dividends ($.28 per share)										(10,127	)		(10,127	)
Stock contributions to employee retirement plan	305			153			13,631						13,784
Stock awards, net of forfeitures	263			131			(2,374	)					(2,243	)
Stock-based compensation expense							7,137						7,137
Stock options exercised	137			68			3,512						3,580
Tax benefit related to stock awards and stock options, net							1,656						1,656
Repurchase of common stock	(1,000	)		(500	)		(7,965	)		(30,795	)		(39,260	)
Balance at July 31, 2008	35,909		$	17,954		$	303,982		$	531,552		$	853,488