2007

August 9, 2007

Kerry Clark

Chief Executive Officer

Jeff Henderson

Chief Financial Officer

Fourth Quarter Earnings

Exhibit 99.3

2

Forward-Looking Statements and GAAP Reconciliation

This presentation contains forward-looking statements addressing expectations, prospects, estimates

and

other matters that are dependent upon future events or developments.  These matters are subject to risks

and uncertainties that could cause actual results to differ materially from those projected, anticipated or

implied.

The

most

significant

of

these

uncertainties

are

described

in

Cardinal

Health's

Form

10-K,

Form

10-Q and Form 8-K reports (including all amendments to those reports) and exhibits to those reports, and

include (but are not limited to) the following: competitive pressures in its various lines of business; the loss

of

one

or

more

key

customer

or

supplier

relationships

or

changes

to

the

terms

of

those

relationships;

uncertainties relating to the timing of generic introductions and the frequency or rate of pharmaceutical

price appreciation; changes in the distribution patterns or reimbursement rates for health-care products

and/or

services;

the

results,

consequences,

effects

or

timing

of

any

inquiry

or

investigation

by

any

regulatory authority or any legal and administrative proceedings; uncertainties related to finalizing the

pending

settlement

of

the

class-action

securities

litigation,

including

obtaining

court

approval

of the

settlement;

successful

integration

of

Cardinal

Health

and

VIASYS

Healthcare

and

the

ability

to

achieve

synergies from the acquisition; uncertainties relating to the amount of future share repurchases by Cardinal

Health, which can be affected by Cardinal Health's then-current stock price, regulatory restraints on share

repurchases, cash flows, financial condition and alternative uses of cash available to Cardinal Health at the

time, as well as by the amount of any additional share repurchases authorized by the board of directors;

and general economic and market conditions.  This presentation reflects management’s views as of August

9, 2007.  Except to the extent required by applicable law, Cardinal Health undertakes no obligation to

update or revise any forward-looking statement.  In addition, this presentation includes non-GAAP financial

measures.  Cardinal Health provides definitions and reconciling information at the end of this presentation

and on its investor relations page at www.cardinalhealth.com.

3

Today’s Agenda

Opening remarks

Kerry Clark

Chief Executive

Officer

Financial overview

Jeff Henderson

Chief Financial

Officer

Q&A

4

Fiscal 2007 Recap

•

FY07 has been a very good year, marked by a return to strong growth

•

Clinical and Medical Products sector emerged as a significant, value

creating growth engine for entire company

•

Healthcare Supply Chain Services sector delivered strong FY07 results

–

Good progress in Supply Chain Medical; return to target growth in latter

part of FY08

–

Strong year for Supply Chain Pharma, despite Q4 comparability issue

•

Good momentum headed into FY08 with right business platform and

team to deliver long-term growth goals

5

Financial Overview

•

FY 2007 Q4 Results –

Consolidated

•

FY 2007 Q4 Results –

Segments

•

FY 2007 Results -

Consolidated

•

FY 2007 Segment Scorecard

•

Acquisition Scorecard

•

FY 2008 Financial Targets and Goals

6

Revenue

Operating earnings

Earnings from continuing ops.

Diluted EPS from continuing ops.

Operating cash flow

Return on equity

Q4 Fiscal 2007 Financial Review

1

% change over prior year quarter

$22,263

$421

$238

$0.61

($292)

47.3%

($M)

5%

(14%)

(22%)

(15%)

%

Change

1

GAAP Basis

$538

$345

$0.89

17.3%

($M)

3%

5%

14%

%

Change

1

Non-GAAP Basis

7

7

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

GAAP Consolidated

$421

$0.61

$487

$0.72

Special Items

$118

$0.28

$33

$0.06

Impairment Charges

& Other

($1)

$0.00

$1

$0.00

Non-GAAP

Consolidated

$538

$0.89

$521

$0.78

Q4 FY 2007

Q4 FY 2006

Q407 Operating Earnings and EPS

8

Q407 Business Analysis

Healthcare Supply Chain Services -

Pharmaceutical

Highlights:

•

Q4 revenue up 4% with core pharmaceutical distribution DSD revenue up 7% and bulk revenue up 4%

•

Key factors impacting revenue growth included: branded to generic conversions, the lapping of large

new bulk business obtained in Q406, and the sale of specialty business to OTN

•

Q4

profit

growth

impacted

by

previously

discussed

year

over

year

compare

•

Economic profit margin¹

decreased 1 basis point vs. prior year to 0.78%

•

Q4 ’07 equity compensation expense of $11.1 million vs. $15.9 million in prior year

Revenue

Segment Profit

19,556

303

Q4 FY07

($M)

18,752

312

Q4 FY06

($M)

4%

(3%)

%

Change

1

Non-GAAP financial measure

9

Q407 Business Analysis

Healthcare Supply Chain Services -

Medical

Highlights:

•

Q4 revenue up 5%, supported by strong growth from lab and ambulatory customers and Canadian

operations

•

Segment profit impacted by operational investments (e.g., customer service) and a $7M increase

over Q4 ’06 in customer-related write-offs

•

Economic profit margin¹

decreased 14 basis points vs. prior year to 1.36%

•

Q4 ’07 equity compensation expense of $6.6 million vs. $9.1 million in prior year

Revenue

Segment Profit

1,929

83

Q4 FY07

($M)

1,837

85

Q4 FY06

($M)

5%

(2%)

%

Change

1

Non-GAAP financial measure

10

Q407 Business Analysis

Medical Products Manufacturing

Highlights:

•

Q4 revenue up 14%; driven by strong growth across most businesses, new product launches and

acquisitions

•

Profit up 27% on strong top line growth in core business and expanding gross margins

•

Viasys acquisition had a positive 3pp impact on revenue and negligible impact on segment profit

•

Q4 ’07 equity compensation expense of $6.3 million vs. $8.1 million in prior year

Revenue

Segment Profit

500

58

Q4 FY07

($M)

440

46

Q4 FY06

($M)

14%

27%

%

Change

11

Q407 Business Analysis

Clinical Technologies and Services

Highlights:

•

Revenue up on strong and growing demand for Alaris and Pyxis products, new product launches and

improved installation cycles

•

Q4 profit growth driven by higher volumes across all business lines,  improved mix, impact of

operational excellence initiatives, and improved operating leverage

•

Q4

’07

equity

compensation

expense

of

$8.7

million

vs.

$12.2

million

in

prior

year

Revenue

Segment Profit

756

144

Q4 FY07

($M)

649

96

Q4 FY06

($M)

17%

50%

%

Change

12

Full Year FY07 Financial Review

1

% change over prior year quarter

$86,852

$1,374

$840

$2.07

$1,003

23.5%

($M)

9%

(26%)

(28%)

(24%)

%

Change¹

GAAP Basis

$2,163

$1,384

$3.42

16.9%

($M)

12%

13%

20%

%

Change¹

Non-GAAP Basis

Revenue

Operating earnings

Earnings from continuing ops.

Diluted EPS from continuing ops.

Operating cash flow

Return on equity

13

13

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

GAAP Consolidated

$1,374

$2.07

$1,845

$2.71

Special Items

$772

$1.31

$81

$0.14

Impairment Charges

& Other

$17

$0.04

$6

$0.01

Non-GAAP

Consolidated

$2,163

$3.42

$1,931

$2.86

Non-Recurring &

Other Items

$26

$0.04

FY 2007

FY 2006

Full Year FY07 Operating Earnings and EPS

14

FY07 Scorecard

HSCS –

Pharma

HSCS –

Medical

Medical Products

Clinical

Technologies

9%

4%

12%

11%

Revenue

Growth

14%

1%

20%

20%

Profit

Growth

Cardinal had a strong fiscal 2007 with three of four segments delivering

outstanding performance

Well Above Range

Below Range

Well Above Range

Top of Range

Performance vs.

Profit Growth Target

15

Acquisition Scorecard

Acquisition

Date

Results

VIASYS Healthcare (MPM)

June ’07

(+)

Specialty Scripts (HSCS-P)

January ’07

(+)

Care Fusion (CTS)

October ’06

(+)

MedMined (CTS)

July ’06

(+)

Dohmen (HSCS-P)

June ’06

(+)

Denver Biomedical (MPM)

May ’06

(+)

Parmed (HSCS-P)

March ’06

(+)

Source Medical (HSCS-M)

November ’05

(+)

Geodax (HSCS-P)

July ’04

(+)

Alaris (CTS)

June ’04

(+)

Snowden Pencer

(MPM)

March ’04

(–)

Added since last update

17

Other FY08 Assumptions

•

$4.1B in planned share buyback complete as of July; $2B in additional core share

repurchase approved over the next two years

•

Assuming approximately 375M average shares outstanding for FY08

•

Interest / other forecast in range of $220M to $235M

–

SEC and related litigation settlements to impact  EPS by approximately $0.05 per share

•

Non-GAAP effective tax rate for FY08 expected to be in the range of 31.75% to

32.00%

•

Refined methodology for allocating corporate costs in FY08

–

Positively impacts HSCS –

Pharma

earnings growth by ~1.8 percentage points

–

Negatively impacts HSCS –

Medical earning growth by ~7.3 percentage points

18

Q&A

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)

HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2007									Second Quarter Fiscal 2007									Third Quarter Fiscal 2007									Fourth Quarter Fiscal 2007									Fiscal 2007
Pharmaceutical	July		August		September		Total			October		November		December		Total			January		February		March		Total			April		May		June		Total			Total Year
Economic Profit Margin
Segment profit							$	288.7								$	328.0								$	379.7								$	303.4		$	1,299.8
Effective tax rate from continuing operations								35.1	%								35.1	%								35.1	%								35.1	%		35.1	%
Net operating earnings, after-tax (NOPAT)							$	187.5								$	213.0								$	246.6								$	197.0		$	844.1
Total assets	$	11,549.8	$	12,206.9	$	11,620.0				$	11,781.8	$	11,624.6	$	11,663.1				$	11,423.2	$	11,681.7	$	12,031.9				$	11,494.8	$	11,849.6	$	11,705.2
Less: assets from discontinued operations		107.5		109.4		—					—		—		—					—		—		—					—		—		—
Less: accounts payable		6,644.9		7,115.6		6,979.1					6,897.3		6,836.3		6,912.9					6,906.3		7,252.4		7,513.2					6,816.5		7,135.4		7,466.5
Less: other accrued liabilities		1,069.5		1,088.6		1,016.3					1,092.8		1,100.2		1,036.3					1,078.3		1,059.3		1,154.0					1,082.4		1,202.4		1,160.2
Less: liabilities from businesses held for sale		—		—		—					—		—		—					—		—		—					—		—		—
Less: deferred income taxes and other liabilities		82.1		82.1		71.0					89.3		89.7		71.6					90.3		90.3		69.6					87.7		88.0		36.1
Less: goodwill and other intangibles, net		1,354.5		1,361.8		1,332.4					1,328.7		1,335.0		1,335.7					1,339.6		1,348.9		1,349.4					1,351.9		1,351.3		1,345.6
Less: cash and equivalents		42.2		57.4		75.0					91.3		102.7		113.6					115.5		113.0		135.3					127.7		67.9		32.8
Less: short-term investments available for sale		—		—		—					—		—		—					—		—		—					—		—		—
Tangible capital	$	2,249.1	$	2,392.0	$	2,146.2	$	2,262.4		$	2,282.4	$	2,160.7	$	2,193.0	$	2,212.0		$	1,893.2	$	1,817.8	$	1,810.4	$	1,840.5		$	2,028.6	$	2,004.6	$	1,664.0	$	1,899.1		$	2,053.5
Multiplied by weighted average cost of capital								2.3	%								2.3	%								2.3	%								2.3	%		9.0	%
Capital charge							$	52.0								$	50.9								$	42.3								$	43.7		$	184.8
Economic profit							$	135.5								$	162.1								$	204.3								$	153.3		$	659.3
Revenue							$	18,532.8								$	19,237.6								$	19,246.4								$	19,556.0		$	76,572.8
Economic profit margin								0.73	%								0.84	%								1.06	%								0.78	%		0.86	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2007									Second Quarter Fiscal 2007									Third Quarter Fiscal 2007									Fourth Quarter Fiscal 2007									Fiscal 2007
Medical	July		August		September		Total			October		November		December		Total			October		November		December		Total			April		May		June		Total			Total Year
Economic Profit Margin
Segment profit							$	64.1								$	81.9								$	88.7								$	83.3		$	318.1
Effective tax rate from continuing operations								29.8	%								29.8	%								29.8	%								29.8	%		29.8	%
Net operating earnings, after-tax (NOPAT)							$	45.0								$	57.5								$	62.2								$	58.5		$	223.2
Total assets	$	2,442.1	$	2,437.6	$	2,456.6				$	2,492.0	$	2,525.1	$	2,505.1				$	2,562.1	$	2,521.4	$	2,476.4				$	2,480.4	$	2,396.8	$	2,472.9
Less: assets from discontinued operations		—		—		—					—		—		—					—		—		—					—		—		—
Less: accounts payable		534.8		478.7		510.4					510.6		524.1		544.4					505.2		522.0		528.5					532.3		523.2		558.0
Less: other accrued liabilities		71.1		78.1		49.4					77.4		61.6		20.9					52.1		52.3		16.2					48.7		76.5		35.8
Less: liabilities from businesses held for sale		—		—		—					—		—		—					—		—		—					—		—		—
Less: deferred income taxes and other liabilities		58.2		58.1		53.0					57.2		55.4		44.4					48.3		48.4		58.5					63.6		56.6		59.8
Less: goodwill and other intangibles, net		378.8		377.8		377.7					385.3		384.7		378.3					377.2		378.1		378.0					379.6		381.2		385.1
Less: cash and equivalents		2.9		3.0		4.1					4.2		9.8		7.4					6.7		2.9		17.0					16.5		3.5		25.3
Less: short-term investments available for sale		—		—		—					—		—		—					—		—		—					—		—		—
Tangible capital	$	1,396.3	$	1,441.9	$	1,462.0	$	1,433.4		$	1,457.3	$	1,489.5	$	1,509.7	$	1,485.5		$	1,572.6	$	1,517.7	$	1,478.2	$	1,522.8		$	1,439.7	$	1,355.8	$	1,408.9	$	1,401.5		$	1,460.8
Multiplied by weighted average cost of capital								2.3	%								2.3	%								2.3	%								2.3	%		9.0	%
Capital charge							$	33.0								$	34.2								$	35.0								$	32.2		$	131.5
Economic profit							$	12.0								$	23.3								$	27.2								$	26.3		$	91.7
Revenue							$	1,806.1								$	1,872.5								$	1,906.9								$	1,928.5		$	7,513.9
Economic profit margin								0.66	%								1.24	%								1.43	%								1.36	%		1.22	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)

HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2006									Second Quarter Fiscal 2006									Third Quarter Fiscal 2006									Fourth Quarter Fiscal 2006									Fiscal 2006
Pharmaceutical	July		August		September		Total			October		November		December		Total			January		February		March		Total			April		May		June		Total			Total Year
Economic Profit Margin
Segment profit							$	225.1								$	276.0								$	329.5								$	312.0		$	1,142.7
Effective tax rate from continuing operations								36.8	%								36.8	%								36.8	%								36.8	%		36.8	%
Net operating earnings, after-tax (NOPAT)							$	142.3								$	174.4								$	208.2								$	197.2		$	722.2
Total assets	$	10,521.1	$	10,384.3	$	11,050.2				$	10,499.1	$	10,379.0	$	10,760.7				$	10,770.0	$	10,896.3	$	11,748.0				$	11,342.4	$	11,489.4	$	11,977.6
Less: assets from discontinued operations		173.1		188.3		191.0					197.3		190.6		178.1					179.0		188.2		102.0					97.2		109.6		115.4
Less: accounts payable		5,506.3		5,692.3		6,238.9					5,626.8		5,867.5		6,167.7					6,086.9		6,336.7		7,243.7					6,369.7		6,985.6		7,159.3
Less: other accrued liabilities		970.8		912.7		890.1					929.7		899.0		847.0					908.9		887.9		987.3					1,036.1		1,032.6		1,006.9
Less: liabilities from businesses held for sale		222.9		222.9		222.9					186.3		186.3		186.3					67.6		67.6		67.6					79.4		95.4		—
Less: deferred income taxes and other liabilities		109.1		106.4		44.5					107.6		107.7		43.6					107.2		107.1		62.9					81.5		81.5		63.0
Less: goodwill and other intangibles, net		962.4		958.6		1,168.0					959.5		958.1		1,157.3					1,162.6		1,183.6		1,210.2					1,214.6		1,224.0		1,351.8
Less: cash and equivalents		59.2		66.6		70.3					80.3		88.9		108.2					73.4		74.0		88.3					65.1		87.0		39.8
Less: short-term investments available for sale		—		—		—					—		—		—					—		—		—					—		—		—
Tangible capital	$	2,517.3	$	2,236.5	$	2,224.5	$	2,326.1		$	2,411.6	$	2,080.9	$	2,072.5	$	2,188.3		$	2,184.4	$	2,051.2	$	1,986.0	$	2,073.9		$	2,398.8	$	1,873.7	$	2,241.4	$	2,171.3		$	2,189.9
Multiplied by weighted average cost of capital								2.3	%								2.3	%								2.3	%								2.3	%		9.0	%
Capital charge							$	53.5								$	50.3								$	47.7								$	49.9		$	197.1
Economic profit							$	88.8								$	124.1								$	160.5								$	147.3		$	525.1
Revenue							$	16,532.8								$	16,977.2								$	17,784.6								$	18,752.3		$	70,046.9
Economic profit margin								0.54	%								0.73	%								0.90	%								0.79	%		0.75	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

HEALTHCARE SUPPLY CHAIN SERVICES	First Quarter Fiscal 2006									Second Quarter Fiscal 2006									Third Quarter Fiscal 2006									Fourth Quarter Fiscal 2006									Fiscal 2006
Medical	July		August		September		Total			October		November		December		Total			January		February		March		Total			April		May		June		Total			Total Year
Economic Profit Margin
Segment profit							$	64.5								$	71.4								$	93.5								$	85.1		$	314.5
Effective tax rate from continuing operations								30.1	%								30.1	%								30.1	%								30.1	%		30.1	%
Net operating earnings, after-tax (NOPAT)							$	45.1								$	49.9								$	65.4								$	59.5		$	219.8
Total assets	$	2,267.1	$	2,204.7	$	2,260.7				$	2,362.1	$	2,414.5	$	2,436.0				$	2,491.0	$	2,436.4	$	2,385.5				$	2,447.2	$	2,417.9	$	2,404.1
Less: assets from discontinued operations		—		—		—					—		—		—					—		—		—					—		—		—
Less: accounts payable		496.2		439.0		534.4					530.4		481.4		498.2					513.2		498.0		480.3					537.7		498.3		510.6
Less: other accrued liabilities		127.3		124.4		85.2					109.4		114.4		79.6					100.9		100.4		39.7					113.6		85.5		45.2
Less: liabilities from businesses held for sale		—		—		—					—		—		—					—		—		—					—		—		—
Less: deferred income taxes and other liabilities		66.9		67.7		62.2					68.3		51.2		46.7					52.8		52.4		86.3					51.2		51.0		53.7
Less: goodwill and other intangibles, net		396.5		397.6		396.8					396.8		415.9		416.2					418.2		374.7		374.7					376.7		379.2		386.2
Less: cash and equivalents		8.4		8.0		8.5					8.4		9.1		10.0					4.4		4.8		5.0					5.7		5.9		3.6
Less: short-term investments available for sale		—		—		—					—		—		—					—		—		—					—		—		—
Tangible capital	$	1,171.8	$	1,168.0	$	1,173.6	$	1,171.1		$	1,248.8	$	1,342.5	$	1,385.3	$	1,325.5		$	1,401.5	$	1,406.1	$	1,399.5	$	1,402.4		$	1,362.3	$	1,398.0	$	1,404.8	$	1,388.4		$	1,321.9
Multiplied by weighted average cost of capital								2.3	%								2.3	%								2.3	%								2.3	%		9.0	%
Capital charge							$	26.9								$	30.5								$	32.3								$	31.9		$	119.0
Economic profit							$	18.2								$	19.4								$	33.1								$	27.6		$	100.8
Revenue							$	1,762.6								$	1,770.2								$	1,828.6								$	1,837.2		$	7,198.6
Economic profit margin								1.03	%								1.10	%								1.81	%								1.50	%		1.40	%

⁽¹⁾ Tangible Capital is a quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

⁽²⁾ The sum of the components may not equal due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter 2007											Fiscal Year 2007
(in millions, except per Common Share amounts)	GAAP			Special Items		Impairment Charges and Other			Non-GAAP			GAAP			Special Items		Impairment Charges and Other		Non-GAAP
Operating Earnings
Amount	$	421		$	118	$	(1	)	$	538		$	1,374		$	772	$	17	$	2,163
Growth Rate		(14	)%							3	%		(26	)%						12	%
Provision for Income Taxes	$	164		$	10		—		$	174		$	413		$	243	$	2	$	657
Earnings from Continuing Operations
Amount	$	238		$	108		—		$	345		$	840		$	529	$	16	$	1,384
Growth Rate		(22	)%							5	%		(28	)%						13	%
Diluted EPS from Continuing Operations
Amount	$	0.61		$	0.28		—		$	0.89		$	2.07		$	1.31	$	0.04	$	3.42
Growth Rate		(15	)%							14	%		(24	)%						20	%
	Fourth Quarter 2006											Fiscal Year 2006
	GAAP			Special Items		Impairment Charges and Other			Non-GAAP			GAAP			Special Items		Impairment Charges and Other		Non-GAAP
Operating Earnings
Amount	$	487		$	33	$	1		$	521		$	1,845		$	81	$	6	$	1,931
Growth Rate		(4	)%							(7	)%		4	%						(2	)%
Provision for Income Taxes	$	156		$	10		—		$	166		$	577		$	23	$	2	$	602
Earnings from Continuing Operations
Amount	$	304		$	23	$	1		$	328		$	1,163		$	58	$	4	$	1,225
Growth Rate		11	%							3	%		9	%						3	%
Diluted EPS from Continuing Operations
Amount	$	0.72		$	0.06		—		$	0.78		$	2.71		$	0.14	$	0.01	$	2.86

The sum of the components may not equal the total due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter						Fiscal Year
(in millions)	2007			2006			2007			2006
GAAP Return on Equity		47.3	%		15.0	%		23.5	%		11.5	%
Non-GAAP Return on Equity
Net earnings	$	902.2		$	321.1		$	1,931.1		$	1,000.1
Special items, net of tax, in continuing operations		107.8			23.0			528.9			57.9
Special items, net of tax, in discontinued operations		—			0.9			4.4			12.8
Gain on sale of PTS, net of tax, in discontinued operations		(679.5	)		—			(1,072.4	)		—
Adjusted net earnings	$	330.5		$	345.0		$	1,392.0		$	1,070.8
Annualized		1,322.0			1,380.0			1,392.0			1,070.8
Divided by average shareholders’ equity 1	$	7,623.2		$	8,538.7		$	8,213.2		$	8,660.1
Non-GAAP return on equity		17.3	%		16.2	%		16.9	%		12.4	%
	Fourth Quarter						Fiscal Year
(in millions)	2007			2006			2007			2006
GAAP Return on Invested Capital		18.43	%		6.09	%		9.38	%		4.73	%
Non-GAAP Return on Invested Capital
Net earnings	$	902.2		$	321.1		$	1,931.1		$	1,000.1
Special items, net of tax, in continuing operations		107.8			23.0			528.9			57.9
Special items, net of tax, in discontinued operations		—			0.9			4.4			12.8
Interest expense and other, net of tax		12.2			17.8			77.7			66.8
Gain on sale of PTS, net of tax, in discontinued operations		(679.5	)		—			(1,072.4	)		—
Adjusted net earnings	$	342.7		$	362.8		$	1,469.7		$	1,137.6
Annualized		1,370.8			1,451.2			1,469.7			1,137.6
Divided by average total invested capital 2	$	19,583.8		$	21,080.6		$	20,580.7		$	21,146.3
Non-GAAP return on invested capital		7.00	%		6.88	%		7.14	%		5.38	%

¹ The average shareholders’ equity shown above is calculated using the average of the prior and current quarters except for year-to-date which is calculated as the average of the prior years’ fourth quarter plus each of the current year quarters.

² The average total invested capital shown above is calculated using the average of the prior and current quarters except for year-to-date which is calculated as the average of the prior year fourth quarter plus each of the current year quarters. Total invested capital is calculated as the sum of the current portion of long-term obligations and other short-term borrowings, long-term obligations, current portion of long-term obligations and other short-term borrowings in discontinued operations, long-term obligations in discontinued operations, total shareholders’ equity and unrecorded goodwill. Beginning in the fourth quarter of 2007, unrecorded goodwill is $7.5 billion. For all other periods presented, unrecorded goodwill is $9.7 billion. Current portion of long-term obligations and other short-term borrowings in discontinued operations, and long-term obligations in discontinued operations were $59.2 million, $46.6 million, $41.3 million and $12.3 million at June 30, 2006, September 30, 2006, December 31, 2006 and March 31, 2007, respectively, and $81.1 million, $84.7 million, $79.2 million and $86.6 million at June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	Fourth Quarter						Fiscal Year
(in millions)	2007			2006			2007			2006
GAAP Effective Tax Rate from Continuing Operations		40.8	%		33.9	%		33.0	%		33.2	%
Non-GAAP Effective Tax Rate from Continuing Operations
Earnings before income taxes and discontinued operations	$	401.4		$	459.6		$	1,252.3		$	1,740.4
Special items		118.2			32.8			772.0			80.5
Adjusted earnings before income taxes and discontinued operations	$	519.6		$	492.4		$	2,024.3		$	1,820.9
Provision for income taxes	$	163.7		$	155.8		$	412.6		$	577.1
Special items tax benefit		10.4			9.8			243.1			22.6
Adjusted provision for income taxes	$	174.1		$	165.6		$	655.7		$	599.7
Non-GAAP effective tax rate from continuing operations		33.5	%		33.6	%		32.4	%		32.9	%
	Fourth Quarter
	2007			2006
Debt to Total Capital		32	%		25	%
Net Debt to Capital
Current portion of long-term obligations and other short-term borrowings	$	16.0		$	199.0
Long-term obligations, less current portion and other short-term borrowings		3,457.3			2,588.6
Debt		3,473.3			2,787.6
Cash and equivalents		(1,308.8	)		(1,187.3	)
Short-term investments available for sale		(132.0	)		(498.4	)
Net debt	$	2,032.5		$	1,101.9
Total shareholders’ equity	$	7,376.9		$	8,490.7
Capital	$	9,409.4		$	9,592.6
Net debt to capital		22	%		11	%

Forward-Looking Non-GAAP Financial Measures

The Company presents non-GAAP operating earnings, non-GAAP earnings from continuing operations, non-GAAP return on equity and non-GAAP effective tax rate from continuing operations (and presentations derived from these financial measures) on a forward-looking basis. The most directly comparable forward-looking GAAP measures are operating earnings, earnings from continuing operations, return on equity and effective tax rate from continuing operations. The Company is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most comparable forward-looking GAAP measures because the Company cannot reliably forecast special items and impairment charges and other, which are difficult to predict and estimate and are primarily dependent on future events. Please note that the unavailable reconciling items could significantly impact the Company’s future financial results.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

DEFINITIONS

GAAP

Debt: long-term obligations plus short-term borrowings

Debt to Total Capital: debt divided by (debt plus total shareholders’ equity)

Diluted EPS from Continuing Operations: earnings from continuing operations divided by diluted weighted average shares outstanding

Effective Tax Rate from Continuing Operations: provision for income taxes divided by earnings before income taxes and discontinued operations

Operating Cash Flow: net cash provided by / (used in) operating activities from continuing operations

Segment Profit: segment revenue minus (segment cost of products sold and segment selling, general and administrative expenses)

Segment Profit Margin: segment profit divided by revenue

Segment Profit Mix: segment profit divided by total segment profit for all operating segments

Return on Equity: annualized net earnings divided by average shareholders’ equity

Return on Invested Capital: annualized net earnings divided by (average total shareholders’ equity plus debt plus unrecorded goodwill)

Revenue Mix: segment revenue divided by total revenue for all segments

NON-GAAP

Economic Profit: segment net operating earnings, after-tax minus (tangible capital multiplied by weighted average cost of capital); Tangible Capital is the quarterly average calculated as total assets allocated to the segment less (total liabilities allocated to the segment, goodwill and intangibles, cash and equivalents and short term investments available for sale)

Economic Profit Margin: economic profit divided by revenue

Net Debt to Capital: net debt divided by (net debt plus total shareholders’ equity)

Net Debt: debt minus (cash and equivalents and short-term investments available for sale)

Non-GAAP Diluted EPS from Continuing Operations: non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding

Non-GAAP Diluted EPS from Continuing Operations Growth Rate: (current period non-GAAP diluted EPS from continuing operations minus prior period non-GAAP diluted EPS from continuing operations) divided by prior period non-GAAP diluted EPS from continuing operations

Non-GAAP Earnings from Continuing Operations: earnings from continuing operations excluding special items and impairment charges and other, both net of tax

Non-GAAP Earnings from Continuing Operations Growth Rate: (current period non-GAAP earnings from continuing operations minus prior period non-GAAP earnings from continuing operations) divided by prior period non-GAAP earnings from continuing operations

Non-GAAP Effective Tax Rate from Continuing Operations: (provision for income taxes adjusted for special items) divided by earnings before income taxes and discontinued operations adjusted for special items)

Non-GAAP Operating Earnings: operating earnings excluding special items and impairment charges and other

Non-GAAP Operating Earnings Growth Rate: (current period non-GAAP operating earnings minus prior period non-GAAP operating earnings) divided by prior period non-GAAP operating earnings

Non-GAAP Operating Margin: non-GAAP operating earnings divided by revenue

Non-GAAP Return on Equity: (annualized current period net earnings plus special items minus special items tax benefit) divided by average shareholders’ equity ¹

Non-GAAP Return on Invested Capital: (annualized net earnings plus special items minus special items tax benefit plus interest expense and other, net of tax) divided by (average total shareholders’ equity plus debt plus unrecorded goodwill) ¹

¹ For the three months ended June 30, 2007, the numerator in calculating this non-GAAP financial measure also excludes the $679.5 million net of tax gain on the sale of PTS recorded in discontinued operations in the fourth quarter of fiscal 2007. For the fiscal year ended June 30, 2007, the numerator in calculating this non-GAAP financial measure also excludes the $1.1 billion net of tax gain on the sale of PTS recorded in discontinued operations of which $425 million was recorded in the second quarter of fiscal 2007.