Company

Newsroom

Kinney Drugs Realigns Merchandising Department

Gouverneur, N.Y., March 25, 2010 – Kinney Drugs Inc. a leading community pharmacy
and retail network in New York and Vermont announced today that they will realign the
merchandise department. The realignment is part of the organization’s long range plans to
insure that necessary leadership is in place to support the growing company’s continued
success.

Richard Cognetti, Jr., Vice President of Merchandising announced that Cheri Taylor will be
promoted to Division Manager of Health and Beauty Care and Mike Hatch will make a
lateral move to Division Manager of General Merchandise. Taylor and Hatch will be
responsible for the development and implementation of sales and promotional strategies,
insuring sales and gross margin goals are met, and the development of effective category
management practices.

“Cheri and Mike have over forty five years of combined Category Management experience.
This experience will serve the company well in their new leadership roles, said Richard
Cognetti Jr., Vice President of Retail Merchandising. They will drive our purchasing
decisions, advertising content, merchandise presentation efforts and continue to build
relationships within the vendor community.”

Ms. Taylor held various positions with Fay’s/Eckerd and Brooks including senior buyer,
associate category manger, and category manager. Her last position was with US Cotton,
LLC, located in Baldwinsville NY as Regional Vice President North America-East.

Mr. Hatch has been employed with Kinney Drugs since 1977 holding various positions
within the distribution center and merchandising departments. In 1994 Mike was promoted
to the position of buyer and in 1998 moved to Merchandise Manager for Health and Private
label. In 2001 Mike was promoted to Category Manager of Health Care and in 2007 he was
promoted to Division Manager of Health and Beauty. The knowledge and experience gained
in those positions will compliment his new responsibilities in his role as Division Manager of
General Merchandise.

About Kinney Drugs

Kinney Drugs is a leading community pharmacy and retail business. Founded in 1903 by
Burt Orrin Kinney, the organization has grown into an employee owned company with a
network of 91 pharmacies in central and northern New York and Vermont. Many are
freestanding units offering drive-through pharmacy services, free prescription delivery and
online and telephone refill services. All locations offer a full line of healthcare, personal care
and beauty care products, cosmetics, convenience food and beverages as well as digital photo
processing services and Hallmark greeting cards. Kinney Drugs operates its own distribution
warehouse to service its retail locations.

The company also operates three other divisions that bring healthcare services to customers
outside of the retail environment. These include ProAct, Inc., a full service prescription
benefit management company, HealthDirect institutional pharmacy services and
HealthDirect mail order pharmacy services. Kinney Drugs is an employee-owned company
headquartered in northern New York.