I am honored to introduce myself as the new president of the McKessonHBOC Information Technology Business (formerly HBOC).

As I assume this new role, I'm excited about what the future holds for McKessonHBOC. We have the most comprehensive product and service offerings available in the market, and we maintain the leadership position in a growth industry. We also have the support of more than 9,000 customers representing almost every segment of healthcare, backed by a strong employee base that's committed to exceeding your expectations.

Based on conversations with customers and employees, it's clear we must take a "back-to-the-basics" approach at all levels of our organization. To do that, we'll be focusing on four areas that are vital to your satisfaction, so I'd like to take this opportunity to share with you some of the priorities we've set in each area:

• Customer satisfaction. We will focus on customer satisfaction, especially in the areas of integration, support, service and product commitments. We will re-evaluate the satisfaction measures we have in these areas, and we'll tie them to employee and management incentives.
• Employee satisfaction. Knowledgeable, energetic and motivated employees are essential to fulfilling our responsibilities and commitments to you. In the coming months, we will strengthen our focus on employee retention as well as aggressive recruitment of talented new employees.
• Accountability. I believe it's important to create a culture and value system where everyone is accountable for what they do. This means "pushing down" decisions to those who have the best knowledge to take appropriate action, which should result in better service for our customers.
• Performance. Many of you have chosen McKessonHBOC because of our comprehensive product line, strong balance sheet and financial staying power. We have a sound business, and we will continue to focus on delivering greater value for your I.T. investment. For example, we know that product integration is a key deliverable for many of our customers, so we've increased our R&D; commitment to accelerate efforts in that area.

One of the hallmarks of any good relationship is frequent and direct communication. I commit to you regular reporting of our progress in these key areas and will keep you informed of our plans. In the meantime, I would like your help in answering this question: If you were me, what would you do to improve customer satisfaction? I invite you to send your suggestions directly to me by e-mail at customer.focus@hboc.com, or by fax to (404) 338-5108. Your input will be of tremendous value to all of us at McKessonHBOC.

I look forward to meeting many of you at key customer events, including the Executive Retreat (July 21-23) and the InSight Conference (August 22-24). Hope to see you there.

Sincerely,


Graham O. King
President, Information Technology Business

We have been named Co-Chief Executive Officers of the Company and will share a newly created Office of the Chief Executive Officer. We will divide responsibilities for the Company's operations and share in decision-making: John will focus primarily on McKessonHBOC's core supply management and information technology businesses; David will concentrate on financial, strategic and other staff functions, along with the remaining businesses.

John has been at the Company since 1996, most recently as chief executive officer of the Company's Supply Management Business. He is a seasoned healthcare executive, with broad experience on both the manufacturing and distribution sides of the industry. David has been at the Company since 1991, serving initially as head of corporate planning, where he was the architect of the strategy to grow and ultimately sell our PCS pharmacy benefits management business. Most recently, David was chief executive officer of our Pharmaceutical Services Business, including product procurement, internal information technology and our Canadian pharmaceutical distribution business, Medis.

In turn, we have selected a new executive to lead our Information Technology Business. The Company has appointed Graham King as President of this business. Graham has more than 20 years' experience in the healthcare information systems industry, previously serving as president of Shared Medical Systems and CEO of US Servis. We are delighted that an executive with the skills, experience and personal style of Graham is able to step in and head this important business.

McKessonHBOC is strongly committed to using information to improve healthcare performance in all of our businesses. We believe that our strategy for integrating information technology with supply chain management will reduce costs, improve quality and enhance clinical outcomes for our customers. McKessonHBOC's Information Technology Business continues to be a leader in each of its categories in the healthcare industry. And we intend to maintain and build on that status well into the future.

Our people are the best in the industry and are dedicated to meeting our customer needs with the highest standards of integrity. Our financial position remains strong. We continue to invest in product development initiatives across our businesses as we embrace new technologies and address emerging market needs. Your satisfaction as a valued McKessonHBOC customer is our Company's most important objective. Thanks for your continued support of McKessonHBOC.

Regards,

John H. Hammergren		David L. Mahoney
Co-Chief Executive Officer		Co-Chief Executive Officer