Walgreen (WAG) 8-K Walgreen Co. Reports Record First Quarter 2006 Earnings

COMPARATIVE INCOME STATEMENT		1st Qtr Ending: 11/30/2005
		Amounts in Millions		Favorable/-Unfavorable
PRELIMINARY		This Year	Last Year	Amount	Pct
Net Sales		10,900.4	9,889.1	1,011.3	10.2%
Costs and Deductions
	Cost of Sales	7,897.9	7,181.2	-716.7	-10.0%
	Selling, Occupancy & Admin [1][2]	2,460.7	2,201.8	-258.9	-11.8%
Operating Income		541.8	506.1	35.7	7.1%
	Net Other, Income(Expense)	6.8	5.1	1.7	33.3%
Earnings Before Taxes		548.6	511.2	37.4	7.3%
	Income Taxes	203.0	182.6	-20.4	-11.2%
Earnings After Taxes		345.6	328.6	17.0	5.2%
[1]	2005 Drug antitrust litigation settlement gains: 1st Qtr - $15.0
[2]	Fiscal 2006 1st Qtr includes expenses of $36.2 million for employee stock
	option programs, in accordance with the Company's adoption of SFAS No. 123R.
Earnings Per Share - Basic		$ 0.34	$ 0.32	$ 0.02	6.3%
Earnings Per Share - Diluted		$ 0.34	$ 0.32	$ 0.02	6.3%
Dividends Per Share		$ 0.06500	$ 0.05250	$ 0.01250	23.8%
Weighted Avg Shares Basic		1,012.8	1,022.6
Weighted Avg Shares Diluted		1,022.3	1,029.4
Return on Avg Shareholder Equity		3.8%	4.0%
Effective Income Tax Rate		37.00%	35.72%
LIFO Charge/(Credit)		21.2	18.5

INCOME STATEMENT SUMMARY		1st Qtr Ending: 11/30/2005
		% of	% to Sales
PRELIMINARY		Chg	2005	2004
Net Sales		10.2%	100.00	100.00
Costs and Deductions
	Cost of Sales	10.0%	72.46	72.62
	Selling, Occupancy & Admin [1][2]	11.8%	22.57	22.26
	Sub-Total	10.4%	95.03	94.88
Earnings Before Other Income		7.1%	4.97	5.12
	Net Other, Income(Expense)	33.3%	0.06	0.05
Earnings Before Taxes		7.3%	5.03	5.17
	Effective Income Tax Rate		37.00%	35.72%
Earnings After Taxes		5.2%	3.17	3.32
[1]	2005 Drug antitrust litigation settlement gains: 1st Qtr - $15.0
[2]	Fiscal 2006 1st Qtr includes expenses of $36.2 million for employee stock
	option programs, in accordance with the Company's adoption of SFAS No. 123R.

									PRELIMINARY									CONTINUING OPERATIONS
		Total	Percent Change in Sales				Key Operating Ratios			Other Items			Company Income and Return on Sales
		Company	Total	Drug Stores			Gross	[1]	Op	Net	Other		Pre-Tax	Tax	Income After Taxes
Period		Sales	Co	Total	Comp	Est	Profit	SGA	Income	Interest	Income	% Sales	% Sales	Rate	Amount	% Sales	% Chg
		Amounts in Millions
04-Q1		8,720.8	16.5	16.5	11.9	10.4	26.37	21.79	4.58	2.8	0.0	0.03	4.61	37.50	251.5	2.88	9.9
04-Q2		9,782.2	15.8	15.8	11.5	9.9	27.66	20.64	7.02	4.0	0.0	0.04	7.06	37.50	431.6	4.41	17.0
04-Q3		9,578.5	15.0	15.0	10.4	8.7	26.91	21.23	5.68	3.6	0.0	0.04	5.72	37.50	342.3	3.57	16.4
04-Q4		9,426.7	14.3	14.3	9.7	7.8	27.73	22.30	5.43	6.9	0.0	0.08	5.51	37.50	324.4	3.44	18.7
2004		37,508.2	15.4	15.4	10.9	9.3	27.19	21.48	5.71	17.3	0.0	0.05	5.76	37.50	1,349.8	3.60	15.9
		Amounts in Millions
05-Q1		9,889.1	13.4	13.4	9.4	7.9	27.38	22.26	5.12	5.1	0.0	0.05	5.17	35.72	328.6	3.32	30.7
05-Q2		10,987.0	12.3	12.3	7.7	6.2	28.49	21.43	7.06	6.7	0.0	0.06	7.12	37.25	490.9	4.47	13.7
05-Q3		10,830.6	13.1	13.1	8.7	7.0	27.85	21.90	5.95	10.9	0.0	0.10	6.05	37.25	411.0	3.79	20.1
05-Q4		10,494.9	11.3	11.3	7.0	5.3	27.95	23.20	4.75	8.9	0.0	0.08	4.83	35.12	329.0	3.13	1.4
2005		42,201.6	12.5	12.5	8.2	6.7	27.93	22.19	5.74	31.6	0.0	0.08	5.82	36.49	1,559.5	3.70	15.5
		Amounts in Millions
06-Q1		10,900.4	10.2	10.2	7.2	5.9	27.54	22.57	4.97	6.8	0.0	0.06	5.03	37.00	345.6	3.17	5.2
06-Q2
06-Q3
06-Q4
2006		10,900.4	10.2	10.2	7.2	5.9	27.54	22.57	4.97	6.8	0.0	0.06	5.03	37.00	345.6	3.17	5.2
[1]	Includes the following items:
A)		2004 Drug antitrust litigation settlement gains: 2nd Qtr - (2 Totaling) $12.7; 3rd Qtr - $3.0; 4th Qtr - $0.6                   & nbsp;
B)		2005 Drug antitrust litigation settlement gains: 1st Qtr - $15.0; 2nd Qtr - $4.7; 3rd Qtr - $6.6
C)		4th Qtr 2005 includes $54.7 loss for Hurricane Katrina                     &nbs p;
D)		1st Qtr 2006 includes $36.2 expense for employee stock option programs, in accordance with the Company's adoption SFAS No. 123R.

		LOCATION COUNT AND MONTHLY SALES INCREASES
							PRELIMINARY
Number of Locations [1]
					Six				Nine				Total
		1st Qtr	2nd Qtr		Mos		3rd Qtr		Mos		4th Qtr		Year
2003-04	Start of Period	4,252	4,316		4,252		4,364		4,252		4,442		4,252
	Opened	85	58		143		88		231		211		442
	Relocation	-20	-6		-26		-9		-35		-34		-69
	Closed	-1	-4		-5		-1		-6		-6		-12
	End of Period	4,316	4,364		4,364		4,442		4,442		4,613		4,613
2004-05	Start of Period	4,613	4,711		4,613		4,769		4,613		4,837		4,613
	Opened	113	67		180		86		266		172		438
	Relocation	-12	-7		-19		-17		-36		-21		-57
	Closed	-3	-2		-5		-1		-6		-3		-9
	End of Period	4,711	4,769		4,769		4,837		4,837		4,985		4,985
2005-06	Start of Period [A]	4,985
	Opened [B]	127
	Relocation	-15
	Closed [2]	-29
	End of Period	5,068
[1]	Location counts have been restated to include the Home Care Division and Senior Pharmacies
	A) Includes 32 Home Care Division locations
	B) Includes 3 Senior Med locations
[2]	Includes 22 Katrina damaged stores
Monthly Sales Percent Increases
		Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Year
	2003-04	17.8	16.6	15.3	17.7	13.2	16.3	17.4	15.1	12.6	15.5	13.4	14.1	15.4
	2004-05	13.2	11.8	15.2	8.9	14.6	14.3	16.1	9.6	13.4	12.0	10.1	11.9	12.5
	2005-06	10.4	9.0	11.2										10.2

						PRELIMINARY
INTERIM HIGHLIGHTS				Six		Nine		Total
		1st Qtr	2nd Qtr	Mos	3rd Qtr	Mos	4th Qtr	Year
Total Sales	2003-04	8,720.8	9,782.2	18,503.0	9,578.5	28,081.5	9,426.7	37,508.2
(In Millions)	2004-05	9,889.1	10,987.0	20,876.1	10,830.6	31,706.7	10,494.9	42,201.6
	2005-06	10,900.4
% of Increase	2003-04	16.5%	15.8%	16.1%	15.0%	15.8%	14.3%	15.4%
	2004-05	13.4%	12.3%	12.8%	13.1%	12.9%	11.3%	12.5%
	2005-06	10.2%
Net Income [1]	2003-04	251.5	431.6	683.1	342.3	1,025.4	324.4	1,349.8
(In Millions)	2004-05	328.6	490.9	819.5	411.0	1,230.5	329.0	1,559.5
	2005-06	345.6
% of Increase	2003-04	9.9%	17.0%	14.3%	16.4%	15.0%	18.7%	15.9%
	2004-05	30.7%	13.7%	20.0%	20.1%	20.0%	1.4%	15.5%
	2005-06	5.2%
Diluted [1]
Earnings Per Share	2003-04	$ 0.24	$ 0.42	$ 0.66	$ 0.33	$ 0.99	$ 0.32	$ 1.31
	2004-05	$ 0.32	$ 0.48	$ 0.80	$ 0.40	$ 1.20	$ 0.32	$ 1.52
	2005-06	$ 0.34
Before Drug Litigation		$ 0.36
[1] Includes the following items:
A)	2004 Drug antitrust litigation settlement gains: 2nd Qtr - (2 Totaling) $12.7; 3rd Qtr - $3.0; 4th Qtr - $0.6
B)	2005 Drug antitrust litigation settlement gains: 1st Qtr - $15.0; 2nd Qtr - $4.7; 3rd Qtr - $6.6
C)	4th Qtr 2005 includes $54.7 loss for Hurricane Katrina
D)	1st Qtr 2006 includes $36.2 expense for employee stock option programs, in accordance with the Company's adoption SFAS No. 123R.

							PRELIMINARY
CONSOLIDATED BALANCE SHEET			Nov 30	Nov 30				Nov 30	Nov 30
			2005	2004				2005	2004
Current Assets			(Amounts in Millions)		Current Liabilities
	Cash & Equivalents		584.1	639.0		Short Term Borrowings		0.0	0.0
	Short Term Investments Available For Sale		311.4	674.4		Trade Accounts Payable		3,303.4	3,203.1
	Accounts Receivable, Less Allowance		1,472.8	1,315.7		Other Current Liabilities		1,557.5	1,235.0
	Inventories		6,239.8	5,582.5		Income Taxes		235.1	206.3
	Other Current Assets		208.3	173.5			Total Current Liabilities	5,096.0	4,644.4
		Total Current Assets	8,816.4	8,385.1
Non-Current Assets					Non-Current Liabilities
	Property and Equipment		6,371.3	5,638.4		Deferred Income Taxes		186.3	274.8
	Other Non-Current Assets		214.4	126.2		Other Non-Current Liabilities		1,014.0	904.8
		Total Non-Current Assets	6,585.7	5,764.6			Total Non-Current Liabilities	1,200.3	1,179.6
					Total Liabilities			6,296.3	5,824.0
					Shareholder Equity			9,105.8	8,325.7
Total Assets			15,402.1	14,149.7	Total Liabilities & Equity			15,402.1	14,149.7
STATEMENT OF CASH FLOWS			Nov 30	Nov 30				Nov 30	Nov 30
			2005	2004				2005	2004
Cash Flows From Operating Activities			(Amounts in Millions)		Provided/(Used) by Invest & Finance
	Net Income		345.6	328.6		Property, Plant & Equipment		(338.4)	(305.2)
	Depreciation & Amortization		133.0	110.6		Employee Stock Plan Proceeds		49.4	31.6
	Inc Tax Savings From Employee Stock Plans		10.2	4.0		Property & Equip Disp and Other		2.9	0.2
	Deferred Income Taxes		(51.7)	(7.9)		Cash Dividends		(65.9)	(53.8)
	Other		19.9	18.3		Stock Purchases		(158.5)	(119.3)
	Stock Compensation Expense		34.7	0.0		Net Proceeds from Corp Owned Life Ins		0.0	0.0
						Other		(11.1)	1.4
						Short Term Investment Available For Sale		186.5	581.5
Changes in Current Assets & Liabilities:						Acquisitions, Net of Cash Received		(95.0)	0.0
	Inventory		(639.1)	(843.9)
	Trade Accounts Payable		380.9	561.6
	Accrued Expenses & Liabilities		57.8	(141.5)
	Income Taxes		164.2	140.4	Provided/(Used) by Invest & Finance			(430.1)	136.4
	Accounts Receivable		(72.9)	(142.7)
	Insurance Reserve		9.6	35.0		Changes In Cash & Equivalents		7.3	195.0
	Other Current Assets		45.2	(3.9)		Beginning Cash & Equivalents		576.8	444.0
Provided/(Used) for Operating Activities			437.4	58.6	Cash & Equivalents at End of Period			584.1	639.0