Pharmaca Integrative Pharmacy Completes $18 MM Equity Financing
Investment from Highland Capital Partners Provides Strategic Expertise and Funds for Growth

BOULDER, CO – (October 16, 2006) – Pharmaca Integrative Pharmacy, Inc. a retail chain of integrative pharmacies has raised $18 MM of additional Convertible Preferred Stock. The financing round was led by Highland Capital Partners, Lexington, MA. The capital will be used to accelerate Pharmaca’s new-store expansion plans from its existing 12 locations, as well as further augment the Company’s management team and operational infrastructure. In conjunction with the round, Highland’s Tom Stemberg, will join Pharmaca’s Board of Directors. Stemberg is the founder and former CEO of Staples, Inc.

“We are very excited about Highland’s financial support and recognition that Pharmaca represents a new, scalable retail concept—a wellness approach combining the scientific rigors of modern pharmacy with complementary and holistic remedies, stated Barry Perzow, Co-founder, President and CEO. Dale Schwartz, Co-founder/Vice-Chairman, added, “Highlands’s investment will position us for rapid growth of our business, and the addition of Tom to our Board of Directors brings relevant and valuable expertise from a seasoned retail innovator.”

At Highland, Stemberg is focused on investments in consumer goods and services companies, particularly those with concepts that serve a specific demographic consumer. He stated, “As the market innovator, Pharmaca has targeted a very promising healthy lifestyle niche, and we look forward to growing their differentiated retail pharmacy concept in select markets throughout the country.”

About Pharmaca
Pharmaca Integrative Pharmacy, Inc., founded in June 2000 and based in Boulder, Colorado, is the first pharmacy chain to combine conventional prescriptions, over-the-counter and natural health products and services. The Company owns twelve pharmacies in: Boulder (2), Colorado; Berkeley, Mill Valley, Novato, Pacific Palisades, Sonoma and San Francisco, California; Portland, Oregon; Albuquerque and Santa Fe, New Mexico; and Seattle, Washington. Including this financing, to date the Company has raised approximately $70 MM in equity, bank and supplier financing. www.pharmaca.com

About Highland Capital Partners
Highland Capital Partners was founded with the mission of helping great people build great companies. Since its inception in 1988, the firm has taken a sector-focused approach to investing in exceptional information technology, communications, healthcare and consumer companies. With more than $2.6 billion of committed capital, Highland has invested in and worked to create such firms as Ask Jeeves, Avid Technology, Be Free, CheckFree, Conor Medsystems, Lycos, MapQuest, New Oak Communications, Ocular Networks, Sybase, Telica and VistaPrint. For more information, visit Highland’s website: www.hcp.com.

Contact:
Mary Adams
VP Marketing, Pharmaca Integrative Pharmacy
303-442-2304 ext.106
madams@pharmaca.com