2007 Bear Stearns 20 th Annual Healthcare Conference. New York, New York September 11, 2007

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2007 Bear Stearns 20

th

Annual

Healthcare Conference

New York, New York September 11, 2007

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John Hammergren

Chairman and

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Some of the information in this presentation may constitute forward-looking statements that are subject to various uncertainties. These uncertainties could cause actual results to differ materially from those projected or implied. The risk factors associated with those

uncertainties are described in the Company’s reports and exhibits filed with the Securities and Exchange Commission. Financial information is presented here in summary form. Full details are

provided in the Company’s most recent Annual Report on Form 10-K. All of this information is available at www.mckesson.com. The

Company assumes no obligation to update or revise any such statements, whether as a result of new information or otherwise.

Safe Harbor Clause

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How McKesson Helps

Transform Healthcare

¾ Ensuring the safe and timely delivery of vital medications and supplies using our distribution system, scale and supply chain excellence

¾ Improving health outcomes and patient safety by developing processes and technologies to optimize care and reduce errors ¾ Making healthcare more convenient, personal and effective for

patients

¾ Smoothing information and revenue flows by streamlining interactions between clinicians, payors and patients

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McKesson Distribution Solutions

#1 in pharmaceutical distribution in U.S., Canada,

and Mexico

#1 generics distributor Large Rx repackaging

Specialty distribution & patient services for manufacturers

Comprehensive retail information systems and

automation offerings #1 in medical-surgical distribution to primary and

extended care

Leading Market Positions

McKesson Technology Solutions

50% of all U.S. Hospitals, 77% of those >200 beds

Leader in clinical, revenue cycle, and resource management

solutions

#1 hospital automation

19 Products in KLAS Top 3 for their categories*

Leading businesses in U.K. and France

#1 in medical management software and services for Payors

#1 in disease management for Medicaid agencies

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Improving Healthcare Delivery

Healthcare Operations

Clinical Outcomes

Financial Performance

Unique capabilities to fill in the “White Spaces” of

Healthcare

Unique capabilities to fill in the “White Spaces” of

Healthcare

+

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Meeting Our Customers’ Needs By

Making the Linkages Across McKesson

Payor Patient Hospital Doctor’s Office Government Pharmacy All Software Robots Diagnostic Monitors Outsourcing Services Software Biotech Medical Supplies Software Pharmaceutical Pharmaceuticals Medical Supplies Biotech Drugs Pharmaceuticals Robots Software Sunmark OTC Care Mgmt Services Relay Health Health Mart Patient Portal Robots Software

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Creating Customers for Life –

One McKesson

Working together with our customers to use the clinical knowledge, process expertise, technology and the resources of a Fortune 18

company to change the future of healthcare for the better

.

Create long-term relationships based on custom solutions

that deliver ROI & quality

Sell McKesson’s comprehensive offering Introduce innovations that address emerging healthcare challenges

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Long-term Relationships with

Global Healthcare Leaders

Vanderbilt University Medical Center Vanderbilt University Medical Center

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Seven Years of

Strong Revenue Growth

$93.0 $87.0 $36.7 $42.0 $48.5 $55.7 $68.0 $79.1

FY00* FY01* FY02 FY03 FY04 FY05 FY06 FY07

14%

CA

GR

$ Billions

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Revenue Growth Leveraged into

Higher EPS

(from continuing operations)*

$0.65 ($0.15) $1.35 $1.82 $2.10 $2.13 $2.46 $2.89

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07

24%

CAGR

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Fiscal Year 2008 Q1 Financial Results

Q1 FY08 Q1 FY07 Chg Revenues Distribution Solutions $ 23,798 $ 22,824 4% Technology Solutions 730 491 49% 24,528 $ $ 23,315 5% Operating Profit Distribution Solutions $ 340 $ 313 9% Technology Solutions 100 36 178% 440 $ $ 349 26% Net Income $ 235 $ 184 28% Diluted EPS $ 0.77 $ 0.60 28% ($ in Millions except EPS)

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Market-leading Momentum in

Distribution Solutions

¾ Strong relationships with branded pharmaceutical manufacturers and increased visibility to compensation

¾ In addition to branded pharmaceuticals, focus on higher-margin products and services in both pharmaceutical and medical surgical distribution

¾ Significant growth in generics franchise

¾ Six Sigma and information technology drive quality improvements and operating efficiency

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McKesson is the Preferred Choice

Among Customers

Health Mart Named “Pharmacy Chain of the Year” by Drug Topics Magazine

Wal-Mart “Supplier of the Year” for 2 of the last 4 years

Target Strategic Partner since 2006

Premier’s # 1 Quality Wholesaler

Ranked #1 of Top 20 Drug Retailers/Wholesalers in May/June 2007 edition of Private Label

“Overall Supplier of the Year”

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Market-leading Momentum in

Technology Solutions

¾ Highly-rated customer support & service, product innovation ¾ Value propositions in Patient Safety and Imaging have driven

sales beyond installed base of customers

¾ Growing service businesses expands base of recurrent revenue ¾ Emerging opportunities in physician and consumer-directed

healthcare

¾ Growing payor software product offering and expanding disease management market

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McKesson Technology Solutions

--Product Quality Leadership

2007 Midyear Report

–

9 Category Leaders

– Pathways Materials and Financials

Management G

– Horizon Laboratory G – Horizon Cardiology RD

– Pathways Compliance Advisor OG

– Horizon Expert Orders and

Horizon Expert Documentation G

– Horizon Performance Manager G – Ansos One-Staff OG

– AcuDose-Rx OG

– EC2000 Claims Administrator OG

2007 Midyear Report

–

19 Ranked in Top Three

– Horizon Meds Manager G – Physician Portal OG

– Horizon Passport OG

– Pathways Contract Management OG – Horizon Practice Plus 26-100 & 100+

Market Segment Abbreviations: G – General; C – Community; OG – Other General; SH – Specialty Hospice; R – Reporting & Documentation; 26-100 – Number of Physicians; OM – Other Medical Equipment

– Paragon C

– Horizon Medical Imaging C

– Paragon Clinicals and Financials C – Horizon Homecare SH

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Patient

Hospital Hospital

Hospital Physician OfficePhysician Office_{Physician Office} PayorPayorPayor PharmacyPharmacy_Pharmacy

McKesson Leadership Strategy –

Tomorrow’s Patient Experience

Connectivity by RelayHealth

Connectivity by RelayHealth Connectivity by RelayHealth

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Factors Driving Sustained

Value Creation at McKesson

¾ Unique value proposition in growing healthcare services markets

¾ Strong and expanding global businesses:

¾ Solid operating profit from distribution segment

¾ Upside opportunities from higher growth, higher margin technology segment

¾ Track record of improving financial performance and balanced capital

deployment

¾ Experienced and deep management team with strategic vision

¾ Commitment to shareholder-focused corporate governance practices

Sustained Value Creation

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