Selected Operating Trends Management’ Discussion and Analysis of  Financial Condition and Results of Operations General Results of Operations Operating Revenue Cardinal Health, Inc. Annual Report 2000 25 N.M.- Not Meaningful $^{(1) }$Effect of special charges includes merger-related costs, other special charges and pro forma adjustment. See “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and Note 2 of “Notes to Consolidated Financial Statements” for further analysis. The Company operates within four operating business segments: Phar maceutical Distribution and Provider Services, Medical-Surgical Products and Services, Pharmaceutical T echnologies and Services and Automation and Information Services. See Note 12 of “Notes to Consolidated Financial Statements” for a description of these segments and a discussion of the Company’s change in operating segments. Percent of Total  Growth (1) Operating Revenues Years ended June 30 2000 1999 2000 1999 1998 Pharmaceutical Distribution and Provider Services 22% 24% 75% 72% 69% Medical-Surgical Products and Services 5% 6% 19% 22% 24% Pharmaceutical Technologies and Services 15% 6% 4% 4% 5% Automation and Information Services (2)% 52% 2% 2% 2% Total Company 17% 19% 100% 100% 100% $^{(1) }$The growth rate applies to the respective fiscal year as compared to the prior fiscal year. Percentage of Percentage Change Operating Revenues From Prior Period 2000 vs. 1999 vs. 2000 1999 1998 1999 1998 Operating revenue 100.0% 100.0% 100.0% 17% 19% Gross margin 11.4% 12.2% 12.5% 10% 16% Selling, general and administrative expenses 6.5% 7.3% 7.8% 3% 13% Special charges 0.3% 0.7% 0.3% N.M. N.M. Operating earnings 4.7% 4.2% 4.4% 33% 12% Interest expense and other, net 0.5% 0.5% 0.6% 3% 5% Income taxes 1.6% 1.4% 1.3% 31% 25% Net earnings  2.7% 2.2% 2.5% 41% 7% Net effect of special charges and other (1) 0.2% 0.5% 0.1% N.M. N.M.