Q&A Chairman and Chief Executive Officer, Robert D. Walter, and Vice Chairman,  President and Chief Operating Officer, John C. Kane, share their perspectives on  some of the most frequently asked questions about Cardinal Health. Q: Now that Cardinal has become a large, $25 billion healthcare services company, what are your prospects for future growth? Q: Acquisitions have been important to Cardinal’s strategy in the past. W ill this  continue going forward? If so, what areas would be of greatest strategic interest? Q: Cardinal’s business model has changed dramatically over the last five years with more than half of the company’s earnings now coming from areas outside of pharma- ceutical distribution. Can you describe the company’s business model currently?  Q: What is the growth outlook for Cardinal as a whole? For each of its segments? 6 Cardinal Health, Inc. Annual Report 2000 Walter – Over the next three years, we anticipate that Car dinal will grow its revenues  in the mid- to high teens with net ear nings growth of at least 20%. Phar maceutical Distribution and Provider Services is expected to grow revenues nearly 20% with slightly Automation and Information Services (11% of fiscal 2000 operating ear nings) devel- ops automated systems for dispensing phar maceuticals and medical-surgical supplies and a variety of information systems utilized by healthcare providers and manufacturers. Pharmaceutical Technologies and Services (16% of fiscal 2000 operating ear nings) provides comprehensive services to pharmaceutical manufacturers and biotechnology companies including: proprietary drug delivery technologies and contract manufacturing processes, integrated packaging services, and sales and marketing. Medical-Surgical Products and Services (28% of fiscal 2000 operating ear nings) manufactures and distributes a comprehensive array of medical-surgical and lab prod- ucts used by hospitals, surgery centers, physicians’ offices and long-term care facilities. Pharmaceutical Distribution and Provider Services (45% of fiscal 2000 operating earnings) offers pharmaceutical and specialty product distribution, repackaging,  retail pharmacy franchising, hospital pharmacy management and other services to healthcare providers.  Kane – Cardinal operates a family of businesses of fering many complementary products and services to our healthcare manufacturer and provider customers. We define the company through four primary business segments that reflect the products they provide and the customers they serve:  Walter – We continue to seek opportunities to further enhance the company’s capabil- ities through both internal growth and acquisition. Our acquisition appr oach is disci- plined – we only pursue businesses that complement and fur ther enhance our strategic position. The areas of greatest strategic interest to us at this time would be:  Walter – Although we are a much larger company today, in my view, we are better posi- tioned than at any time in our histor y to continue our impressive record of growth. First, the healthcare industry is large and continues to show str ong growth due to demographic trends. Second, Cardinal offers a broad portfolio of market-leading healthcare products and services, many of which are proprietary, focused on helping healthcare manufac- turers and providers improve their efficiency and the quality of car e for patients. Third, we have superior financial and management r esources, providing us with the ability to invest for the future and manage our growth. And finally, we see substantial opportunity to expand our products and services into new customer and geographic markets. Our Medical-Surgical Products and Services and our Automation and Infor mation Services businesses are broadening their exposure to non-hospital customers and most of our businesses have substantial opportunity to expand internationally. • new medical-surgical product lines for self-manufacture, • additional pharmaceutical manufacturing or marketing services, • select information opportunities that could help us translate the vast amounts  of data we collect into useful infor mation products for our customers.  Robert D. Walter John C. Kane