Spar News

MCKESSON Engages SPAR GROUP in Merchandising Services Agreement

- Leading healthcare services company selects SPAR Group for product merchandising, related services at independent and small chain retail customer locations -

TARRYTOWN, N.Y., September 27, 2006 -- SPAR Group, Inc. today announced it has been selected by McKesson Corporation, a leading healthcare services and information technology company, to provide in-store merchandising services to McKesson's independent and small retail chain customers throughout the United States. Terms of the agreement were not disclosed.

"Our selection of SPAR Group came after an exhaustive review of the nation's top retail merchandising companies," said Stefan Linn, Senior Vice President of Marketing, McKesson Pharmaceutical. "We strongly believe that offering our independent and small chain retail customers an efficient means to consistently execute in-store merchandising and promotions through our FrontEdge Merchandiser program will continue to give McKesson a true competitive advantage. We are delighted that SPAR Group will help us meet this important objective."

Linn added that the SPAR Group's merchandising services will play a key role in helping McKesson build its Health Mart franchise, currently the fastest-growing pharmacy network in the U.S. "Health Mart levels the playing field for independent and small chain pharmacies by providing its members with the resources and national strength they need to drive greater recognition with PBMs, consumers, manufacturers, and policy makers," said Linn. "By ensuring consistent merchandising across the Health Mart network, SPAR Group will enable Health Mart members to strengthen their relationships with manufacturers, helping them compete on an equal footing with the chains."

"Our mission is to help drive sales and profitability gains for our clients, as well as execute programs that foster customer loyalty," said Robert G. Brown, SPAR Group's chairman and chief executive officer. "All of us at SPAR Group are delighted to be serving such a well recognized and highly respected company as McKesson and appreciate the confidence that McKesson management has demonstrated in us by engaging our organization. We look forward to a long and productive working relationship."

Brown said SPAR Group has executed thousands of complete new store set-ups and major remodels in the drug trade class in addition to executing day-to-day continuity coverage, new product cut-ins and providing most other related in-store activities. As part of its services, the company also offers its clients advanced Web-based logistics, communications and reporting tools, used for many sales enhancing activities, including supply chain management and product replenishment.

About McKesson Corporation

San Francisco-based McKesson, currently ranked 16th on the FORTUNE 500, is a healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. Over the course of its 173-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care, including services for manufacturers.

About SPAR Group

SPAR Group is a diversified international marketing services company, providing a broad array of services to help companies improve their sales, operating efficiency and profits at retail worldwide. The company provides in-store merchandising, in-store event staffing, RFID and other technology, as well as research, to manufacturers and retailers covering all product classifications and all classes of trade, including mass market, drug store, convenience store and grocery chains, throughout the United States and internationally.

To learn more about SPAR and its unmatched retail merchandising programs, call (800)314-SPAR(7727), email servingyou@sparinc.com or check www.sparinc.com.