Cardinal Health continues to work with the key government, industry organizations and supply chain partners to implement business continuity and pandemic preparedness plans. More specifically, within Cardinal Health, here is what we are doing:

• In anticipation of a robust flu season, Cardinal Health has been running manufacturing of its products at full capacity for several months. We are working with our suppliers to meet the demand for Tamiflu® (Roche), Relenza® (GSK), masks, gloves, gowns, hand sanitizer and rapid influenza kits. Further, our suppliers are working with the CDC and HHS to ensure that medicines are directed to where they are most needed.
• To accommodate the strong demand, we have refined our inventory planning processes to closely monitor demand on flu-related products and have adjusted our stocking policies where appropriate. We have updated our allocation process and are applying fair-share allocation principles to help our customers have access to adequate supplies. Our Fair Share Allocation process is based on a discipline that allocates available product based on historical customer demand. We will continue to closely monitoring the inventory situation through weekly meetings with our top suppliers and in tight coordination with the key government agencies.