CalPERS Terminates Contract Renewal Negotiations with Medco

The California Public Employees' Retirement System has provided notice that it has terminated negotiations for renewing a contract awarded to Medco Health Solutions, Inc. MHS for pharmacy benefit management services, the company said today. The renewal was scheduled to commence on January 1, 2012.

The CalPERS contract has not been material to Medco's historical earnings results. Based on current information, Medco does not anticipate that the loss of this contract will have a material adverse effect on the company's future financial results. Medco will continue to provide services under its current contract with CalPERS through December 31, 2011.