Cardinal Health TodayCardinal Health Today Leading Diversified Healthcare Services Company Annual Revenues of $26B Market Capitalization of $16B 40,000 Employees Diversified Earnings Stream

Operating Earnings Mix -- FY99Operating Earnings Mix -- FY99

Med/Surg Mfg. & Dist.

29%

Rx Services33%

RRx Distribution38%

Company Profile

• Allegiance Healthcare Corporation– Located 40 miles north of Chicago– 22,000+ Employees World Wide– Subsidiary of Cardinal Health (Feb 99)

Cardinal Health CompaniesCardinal Health Companies

Cardinal Distribution

Pyxis Corporation

Owen Healthcare

National Specialty Services

National PharmPak Services

PCI Services

Medicine Shoppe

Healthtouch

Allegiance Healthcare

MediQual

RP Scherer

Automated Liquid Packaging Renlar Systems

Cardinal Information Corp

ScriptLINE

Comprehensive Reimbursement

Pharmacists PRN CORD Logistics

Key InitiativesKey Initiatives

Operational EfficiencyOperational EfficiencyTechnology Shared Services

Corporate Vendor Strategic Partnerships

Data Center Consolidation

Data Security/Business Recovery

Strategic InitiativesStrategic InitiativesCorporate IT Planning/Processes

Acquisition/Integration Framework

e-Commerce/Application Development

Human Resource InitiativesHuman Resource InitiativesRecruiting/Internship/Retention

Management Development/Assessment

Cardinal’s Commitment to Information Technology

Three Year Investment Greater

than $200 Million

$250 Million Annual IT Budget

1500+ Information Technology Personnel

IT Core Competencies

• Candidates evaluated on several levels– Technical Skills– Business Acumen– Customer Focus– Flexibility / Adaptability– Leadership Skills– Interpersonal Skills– Learning Application– Maturity– Process Orientation– Results Orientation– Teamwork

Training Programs

• Initial Orientation

• Individual Development Plan– Technical Needs– “Soft Skill” Needs

Entry-Level Positions

• 5 Different Job Categories– Integrator / Generalist– Business Analyst– Technical Specialist– Service Specialist– Leader

Advancement Potential

• Movement Within Job Categories

• Movement Within Allegiance

• Movement Within Cardinal

CompensationWork

Environment

Benefits

Development

• Base Salary• Merit Pay• Incentive pay

• Principles & Purpose• Work/Life Balance• Meaningful Contribution• Recognition

• Health & welfare• Retirement• Company Ownership

• Career Opportunities• Job Content• Performance Feedback• Continued Learning

INFORMATION TECHNOLOGY HIGHLIGHTS

• ComputerWorld Honors "Premier 100 IT Leaders for 2000" - Kathy White

• Information Week named our E-Business system on "Top 100 Electronic-Business Innovators" List

• Cardinal announces participation in the formation of an Internet-based company as part of a healthcare industry exchange

• The American Productivity and Quality Center (APQC) Award Recognition for Enterprise-Wide Implementations

• CIO Magazine named our ValueLink Systems Application as one of the 12 most innovative IT applications in the last decade

A Tradition of IT InnovationA Tradition of IT Innovation

19701970 19801980 19901990 20002000

Tel-American

ASAP

Stockless Distribution System

asap-e.com

cardinal.com

CardinalCHOICE& CHOICE-HQ

Accunet, Network, and OTIS

Renlar ScriptLINE Rx

Pyxis

Healthtouch

MediQual

Ken Yorgensen Senior Vice PresidentEnterprise Technology

David LoebigSenior Vice President

Corporate Systems

David LawrenceVice President e-Commerce

Cardinal Distribution

Gary DowdyVice President e-Commerce

Strategy

Jody DavidsSenior Vice President Cardinal Distribution

Rich GiusSenior Vice President, IT Allegiance Distribution

Kathy WhiteExecutive Vice President

andChief Information Officer

Cardinal Health, Inc.Cardinal Health, Inc.Information TechnologyInformation Technology

Neal ChristianDirector

I.T. Finance

Gloria KeeseeVice President

IT Manufacturing

Linda Dye-LudwigDirector

H.R. Dublin I.S.

Daily Duties• No Two Employees Positions are the Same

– Multiple Concurrent Assignments– Different Stages of Project Life Cycles– Networking

Past Recruiting

• Look for 10 - 15 College Grads Per year

• Currently Recruit at 4 Core Schools

Performance Reviews

• Goals Established at Beginning of Year

• Progress Reviewed Twice per Year

• Annual Salary Increases Driven From Performance Review

IT SALARIED EXEMPT TITLES

Levels Integrator/Generalist Business Analyst Technical Specialist Service Specialist Leader

10 Assistant Technical Analyst Support Generalist

11 Assoc. Programmer Analyst Assoc. Technical Analyst Assoc. Support Analyst

12 Programmer Analyst Technical Analyst Support Analyst

13 Sr. Programmer Analyst Sr. Business Analyst Sr. Technical Analyst Support Specialist Team Supervisor II

14 Sr. Systems Analyst Sr. Business SystemsAnalyst

Technical Specialist I Supervisor III

15 Project Leader Business Systems PrincipalAnalyst

Technical Specialist II Team Leader

16 Sr. Project Leader Business SystemsConsultant

Sr. Technical Specialist Manager II

17 Project Manager III Sr. Business SystemsConsultant

Sr. Technical ConsultantManager III

18 Business Systems Strategist Technical PrincipalConsultant

Architect

Group Manager

19 Sr. Business SystemsStrategist

Sr. Architect Director

20+ Director/VP 20+