Health 2.0Presented by:

Lalit Dhadphale Chairman, President & CEO

July 2010

Our Mission

Build the largest online health portal by delivering consumers affordable drugs and pharmacy products, the best health content and cutting edge web-based health management tools.

HealthWarehouse.com

Founded: August 2007 Headquarters: Cincinnati, Ohio Stock Symbol: HEWA Employees: 25 Licenses: 50 States Certifications: DEA, VIPPS Awards: BizRate

Our Management Team

Lalit Dhadphale – President & CEO Co-Founder HealthWarehouse.com (OTC: HEWA) Co-Founder Zengine, Inc. (NASDAQ: ZNGN) Co-Founder Excite Japan (JASDAQ: 3754)

Ron Ferguson Rph – Chief Pharmacist 25 Years Retail Pharmacy Experience Licensed Pharmacist in 50 States Ohio State Board of Pharmacy Liason

Pat Delaney – Chief Financial Officer Clacendix (OTC: IONN) Pointe Communications Advanced Telecommunications

Costly

Inconvenient

Unpleasant

Buying Medications Today

Retail Pharmacies

Expensive brick-and-mortar

Artificial “fill times”

90-day prescriptions

Lack of privacy Poor customer

service

Current LandscapePharmacy Benefits

Managers

Members only Complicated

pricing structure

Limited cost savings

Lengthy delivery times

Poor customer service

Rogue Internet

Pharmacies

Unsafe Violate patent

laws Illegally issue

prescriptions Lengthy

delivery times Poor customer

service

Drugstore.com

Focus shifted to OTC & Beauty

Shrinking prescription volume

Little cost savings over retail

Current LandscapeRetail

Mail-Order

PrescriptionsOTC

Current LandscapePharmacy Prescription Sales Internet RX Cash RX 3rd Party Generic RX Sales From RX

Walgreens $ 41,167,750,000 0.5% 2% 95% 50% 65%

CVS Caremark $ 37,364,878,611 1% 1% 97% 70% 38%

Rite Aid $ 17,613,809,000 0% 1% 96% 55% 67%

Walmart $ 14,977,282,000 2% 20% 70% 65% 6%

Kroger $ 7,366,387,200 1% 25% 65% 50% 10%

Safeway $ 3,676,563,000 1% 10% 80% 50% 9%

Target $ 2,918,033,000 2% 25% 70% 50% 5%

Supervalu $ 2,565,136,000 1% 10% 80% 50% 7%

Kmart $ 2,518,880,000 1% 30% 60% 50% 16%

Costco $ 1,327,891,000 1% 25% 45% 70% 2%

HealthWarehouse $ 1,600,000 * 100% 99% 1% 95% 100%

*June 2010 Rx Sales Annualized

Customer Acquisition Direct - Internet

Marketing directly to consumers VIPPS required to buy on Google, Bing & Yahoo Social Media: Facebook, Twitter, Foursquare

Indirect – Partnerships Insurance Companies

Atlantis Health Plan

Primary Care Clinic Systems AMG Medical, PrimaryCareOne, MyGeorgia

Doctor, Columbia Medical Associates, Qliance

Employers Huntington Insurance

Elderly

Medicare “Donut Hole”

Uninsured / Under-Insured

Inconvenient

Chronic Conditions

Younger Generation

Typical Customers

Simplifying The Channel

Cost paid by Consumer, Employer, Insurance

Current Supply Chain HealthWarehouse Model

Consumer

Wholesaler

Distributor

Pharmacy

Manufacturer

$

$$

$$$

$$$$

Savings to Consumer, Employer, Insurance

Manufacturer

Consumer$

Cost Savings

March 2010 – Company data on South Florida pricing

Drug QTY HW CVS WG

ATENOLOL 90 $9.50 $17.89 $14.99

LISINOPRIL 90 $9.50 $38.29 $29.99

METFORMIN 180 $9.50 $42.89 $45.49

HCTZ 90 $9.50 $11.09 $11.99

LEVOTHYROXINE 90 $9.50 $25.19 $20.89

ACTOS 90 $628.85 $761.00 $712.39

DIOVAN 90 $203.55 $253.99 $236.49

BENICAR 90 $280.50 $349.00 $308.89

Convenience

Cincinnati, OH

80% of US population reached in 2 days

Customer Service

Pharmacy Refill Manager

Health Content Partner with leading content

providers Create advertising and cross-sell

opportunities Drive organic traffic via search

engines Currently more ad dollars available

than advertising opportunities in healthcare

Health Content

Health Community

Health Community Utilize power of Web 2.0 technologies

to build community and discussions Create advertising and cross-sell

opportunities Drive organic traffic via search

engines Add value to the user experience

beyond purchasing and build trust

Online Health Management Tools

Extend length of visit time by providing health monitoring tools

Mobile Apps to further extend reach beyond desktop

Tie online software to HW branded blood glucose meter and test strips

Further build trust with users

Online Health Management Tools

Technology Hosted on Amazon EC2 platform

Linux, Apache, MySQL, PHP stack

Utilizes YUI (Yahoo JavaScript Library)

Web 2.0 technologies include: AJAX, JavaScript, JSON, RSS, XML, SOAP

100% Open Source

Current Opportunities Disruptive business model

Eliminate inefficiencies in supply chain Drug price transparency

$40 billion brands off patent next 2 years Focus on generics

Bring consumers affordable medications Low overhead Fast shipping Award-winning customer service

Growth Initiatives Further enhance our portal to attract

advertisers and sponsors Increase traffic:

Content - Similar to WebMD Community - Web 2.0, Facebook, Twitter Search Engines – Google & Bing allow only VIPPS

Increase stickiness: Monitoring – Online Health Management Mobile – Interfaces for iPhone, Android

Pursue Strategic Acquisitions OTC players (revenues/customers)

Convert OTC customers to Rx Health 2.0 tools and sites

Annual Financial Results

2008 2009 % Growth

Revenues $1,270,527 $3,589,391 +183%

Gross Profits 299,900 901,987 +201%

Gross Margins 23.60% 25.13%

Net Income ($667,301) ($2,439,502) n.m.

Quarterly Financial Results

1Q 2009 1Q 2010 % Growth

Revenues $668,116 $1,235,514 +85%

Gross Profits 152,425 628,099 +312%

Gross Margins 22.81% 50.84%

Net Income ($442,042) ($318,906) n.m.

Key Annual Statistics

2008 2009 % Growth

Orders 22,951 81,895 +257%

Prescriptions 170 17,855 +10,403%

Avg. Order Size $55.36 $46.20 -17%

Refills 17 4,235 +3,845%

Pageviews 1,144,189 4,057,959 +255%

Customers 11,704 54,682 +367%

Key Quarterly Statistics

1Q 2009 1Q 2010 % Growth

Orders 14,760 15,099 +2%

Prescriptions 902 12,397 +1,274%

Avg. Order Size $51.23 $81.83 +60%

Refills 119 4,694 +3,845%

Pageviews 885,211 909,784 +3%

Customers 22,336 62,860 +181%

Thank You