1. PDL eTechnology Update ePocrates and Web PA Overview for PDLIAG Implementation Advisory Group June 22, 2004

2. CONFIDENTIAL: This document contains proprietary ideas, concepts, and other information which belong exclusively to ePocrates, Inc. Information disclosed herein should be considered proprietary and confidential. This document is the property of ePocrates Inc. and may not be disclosed, distributed, or reproduced without the express written consent of ePocrates, Inc. 1800 Gateway Drive, San Mateo, CA 94404 Phone: 650-227-1700 Fax: 650-227-2770 Scheduled for Implementation September 1, 2004

3.  350,000 active subscribers  8,300 in Virginia  140,000 (20%) physicians active subscribers  3,800 (23%) in Virginia  600 new users per day  A new physician joins every 14 minutes  68% of MDs with PDA have ePocrates Over 20% of All U.S. Physicians Currently Subscribe to ePocrates

4. Blue Shield of California Michigan Dept of Community Health ePocrates Partnerships More than 90 Clients representing 85 million lives

5. Overview of ePocrates Rx® Features Formulary menu Drug name Formulary status codes Drug reference guide Drug InformationFormulary Information MultiCheck™AutoUpdate

6. Do Physicians Value ePocrates Formulary Offering?  73% 1 reported that the application improved workflow efficiency in the practice because it decreased their reliance on formulary books and reduced the formulary-related pharmacy phone calls.  65% 1 said that they provided a better quality of care since they were more likely to reference drug information before prescribing.  78% 1 reported that the application is likely to influence their choice of prescription medications as it allows them to avoid pharmacy phone calls and offer patients a lower copay.  74% 2 were unaware of formulary status changes in a timely manner, prior to using the application.  79% 2 were “more likely to have a favorable impression of a health plan that lists its formulary information in ePocrates Rx Formulary than a health plan that does not.” 1 AdvancePCS–ePocrates Outpatient Study, September 2000. 2 ePocrates User Survey, June 2002 (939 respondents)

7. Benefits to the Commonwealth of Virginia  Increase beneficiary satisfaction and quality of care  Manage rising administrative and drug costs  Improve provider relations through less administrative hassle

8. Why should physicians use ePocrates Rx®?  50% of MDs estimated that using ePocrates Rx® has prevented on average at least 1 ADE on a weekly basis  65% rate high or very high the impact of the application on quality of care  73% of physicians rate high or very high the impact of the application on workflow efficiency in the practice 2  Prior to using ePocrates Rx® with the formulary feature, 74% of physicians were unaware of formulary status changes in a timely manner 3 Improve quality of careImprove workflow efficiency

9. PDL Web Prior Authorization (PA) Internet Based Technology

10. PDL Web PA is a web based application. It was developed in an effort to provide authorized users with a web tool that will enhance the process of submitting prior authorizations.

11.  Ease of Use  Batch PA Requests  Check Status of Submitted PAs  Monitoring for Renewals  Review Drug Therapy Alternatives Advantages of Web PA System

12.  Pediatrics  Family Practice Physicians  Long-Term Care Pharmacy  Internal Medicine Physicians  Academic Health Care Center Beta Test Sites

13. My PAs is a summary screen of PA requests made through the web

14. View of a PA Request

15. View of Alternative Drug Therapy