CVS » Topics » Historical Exchange Ratio Analysis

This excerpt taken from the CVS 8-K filed Feb 13, 2007.
Historical Exchange Ratio Analysis

     Lehman Brothers also compared the historical per share prices of CVS and Caremark during different calendar periods between February 9, 2006 and February 9, 2007 in order to determine the implied average exchange ratio that existed for those calendar periods (excluding the Caremark special cash dividend). The following table indicates the average exchange ratio of CVS common stock for Caremark common stock for the calendar periods indicated:

Calendar Period   Average Exchange Ratio


February 9, 2007   1.681x
10-day period   1.657x
20-day period   1.644x
30-day period   1.633x
60-day period   1.616x
90-day period   1.558x
180-day period   1.523x
One-year period   1.481x

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