8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 2, 2007

Cardinal Health, Inc.

(Exact name of registrant as specified in its charter)

Ohio	1-11373	31-0958666
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

7000 Cardinal Place, Dublin, Ohio 43017

(Address of principal executive offices) (Zip Code)

(614) 757-5000

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On November 5, 2007, Cardinal Health, Inc. (the “Company”) issued a news release announcing its results for the quarter ended September 30, 2007. A copy of the news release is included as Exhibit 99.1 to this report.

A discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information to investors regarding the Company’s financial condition and results of operations is included as Exhibit 99.2 to this report.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

(b)

On November 5, 2007, the Company announced that Mark W. Parrish will cease to be Chief Executive Officer – Healthcare Supply Chain Services effective immediately and Jeffrey W. Henderson, the Company’s Chief Financial Officer, will assume the additional role of Interim Chief Executive Officer – Healthcare Supply Chain Services until a permanent successor is named. Mr. Parrish will remain an employee of the Company through November 30, 2007.

(e)

On November 2, 2007, the Company entered into a letter agreement (the “Separation Letter”) with Mr. Parrish specifying the terms of his separation from the Company under his previously-described offer letter dated November 8, 2006 (the “Offer Letter”). The Separation Letter provides that the termination of Mr. Parrish’s employment is without cause. As a result, under the terms of the Offer Letter, the Company will be required to pay severance equal to the sum of 12 months of base salary plus Mr. Parrish’s target annual bonus for the fiscal year 2008. Also under the terms of the Offer Letter, Mr. Parrish will be entitled to immediate vesting of a 35,000 restricted share unit grant on November 15, 2006, ratable vesting of other unvested stock options and restricted shares and share units and all of his stock options will remain outstanding to term. The Separation Letter also provides for an additional one year of continued coverage under the Company health and medical benefit plan and outplacement services for one year. Mr. Parrish will execute a standard form of release of claims against the Company, and will remain subject to the terms of a Confidentiality and Business Protection Agreement that he previously entered into with the Company.

Item 7.01 Regulation FD Disclosure

During a conference call scheduled to be held at 8:30 a.m. EST on November 5, 2007, the Company’s President and Chief Executive Officer and Chief Financial Officer will discuss the Company’s results for the quarter ended September 30, 2007. The slide presentation for the conference call is included as Exhibit 99.3 to this report.

On November 5, 2007, the Company issued a news release announcing the management change discussed above, which is attached hereto as Exhibit 99.4.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

10.1	Separation Letter, dated as of November 2, 2007, between Cardinal Health, Inc. and Mark W. Parrish.
99.1	News release issued by Cardinal Health, Inc. on November 5, 2007 announcing first quarter results.
99.2	Information disclosed by Cardinal Health, Inc. on November 5, 2007.
99.3	Slide presentation.
99.4	News release issued by Cardinal Health, Inc. on November 5, 2007 announcing sector management change.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Cardinal Health, Inc. (Registrant)
Date: November 5, 2007	By:	/s/ Ivan K. Fong
		Name:	Ivan K. Fong
		Title:	Chief Legal Officer and Secretary

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EXHIBIT INDEX

10.1	Separation Letter, dated as of November 2, 2007, between Cardinal Health, Inc. and Mark W. Parrish.
99.1	News release issued by Cardinal Health, Inc. on November 5, 2007 announcing first quarter results.
99.2	Information disclosed by Cardinal Health, Inc. on November 5, 2007.
99.3	Slide presentation.
99.4	News release issued by Cardinal Health, Inc. on November 5, 2007 announcing sector management change.

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EX-10.1

Exhibit 10.1

Cardinal Health 7000 Cardinal Place Dublin, OH 43017 614-757-5000 main   www.cardinal.com

November 2, 2007

Mark Parrish

7000 Cardinal Place

Dublin, Ohio 43017

Dear Mark:

In accordance with our discussions, this letter will serve to specify the terms of your separation from Cardinal Health, Inc. (the “Company”) under your offer letter dated November 8, 2006 (“Offer Letter”). All terms and conditions of the Offer Letter remain in force and are supplemented by the terms of this letter. In addition, you acknowledge that you are bound by the Confidentiality and Business Protection Agreement effective as of November 8, 2006, and that the same remains in full force and effect and survives the termination of your employment with the Company.

1. You will cease to be an officer of Cardinal Health, Inc. and any of its affiliates on November 5, 2007. You agree to provide a letter of resignation to this effect. Your separation as an employee of Cardinal Health, Inc. will be effective November 30, 2007 (“Date of Termination”). This date will be your last day of active full-time employment. By signing below, you acknowledge your resignation from all positions with the Company and its affiliates effective on the Date of Termination.

2. The termination of your employment will qualify as a Payment Termination as set forth in Paragraph 8 of the Offer Letter, entitling you to the severance benefits set forth therein. The first seven (7) months of severance payments shall be payable as soon as administratively practicable after June 1, 2008, with interest to the date of payment at the Prime Rate as published in the Wall Street Journal on the Date of Termination, as described in the Offer Letter. The date of payment for the first seven (7) months of severance is expected to be June 13, 2008, with subsequent installments payable on the first regular payroll date of each month thereafter.

3. In accordance with the provisions of the Offer Letter, your termination will be considered to qualify as a “retirement” under the terms of your outstanding equity awards. A schedule is attached to this letter setting forth the portion of such equity awards that will vest as a result of your termination and specifying the date of expiration of your outstanding options.

4. In addition to the severance payments described above, you will be paid for any unused accrued PTO as of the Date of Termination.

5. The Company will also subsidize the continued coverage of you and any family members covered at the Date of Termination under the health and medical benefit plan of the Company (including prescription drug, dental and vision coverage, as applicable) for the one year period of your severance payments at the same level of employer contribution applicable to similarly situated active employees of the Company during the severance period. This subsidy will be taxable as additional income to you during the severance period. In addition, it is agreed that your continued health and medical coverage is provided in accordance with Internal Revenue Code Section 4980B, commonly referred to as “COBRA coverage,” with your COBRA coverage commencing on December 1, 2007.

6. Under the terms of the FY 2006 – FY 2008 Long-Term Incentive Cash Program, you will not be eligible for the payment of an award. In addition, you will not be eligible for a payment under the Amended and Restated Management Incentive Plan for FY 2008 or under the Long-Term Incentive Cash Program for FY 2008 – FY 2010.

7. The Company will provide you with reasonable outplacement services for a period of time not exceeding one year from the Date of Termination.

8. In consideration of the additional benefits provided hereunder, including but not limited to the subsidy for your COBRA coverage and outplacement services, you agree to execute, simultaneously herewith, a release in the form attached as Exhibit “A”.

9. Finally, you will have the opportunity to review in advance the internal and external announcements regarding your separation from the Company, which are expected to occur on November 5, 2007.

Mark, please indicate your agreement by signing below.

Sincerely,

/s/ R. Kerry Clark

R. Kerry Clark

President & Chief Executive Officer

Enclosures

Agreed to and accepted:
/s/ Mark W. Parrish	Nov. 4, 2007
Mark Parrish	Date

Schedule to Separation Agreement dated Oct 31, 2007

Mark Parish

Outstanding Equity Summary

Date of Termination: 11/30/2007

Grant Date	Original Grant Expiration Date	Grant Type	# Granted	Price		# Outstanding	# of Vested Outstanding (vested prior to acceleration)	# Vested Due to Acceleration at DOT	Total Vested at DOT	Previously Exercised or Lapsed	# Cancelled	Exercisable Date	Notes
03/01/99	03/01/09	Non-Qualified	14,898	$	47.33	13,243	13,243	0	13,243	1,655	0	11/30/07 to 03/01/09	Partial exercise on 05/09/06
11/15/99	11/15/09	Non-Qualified	28,877	$	31.17	28,877	28,877	0	28,877	0	0	11/30/07 to 11/15/09
11/20/00	11/20/10	Non-Qualified	21,620	$	66.08	21,620	21,620	0	21,620	0	0	11/30/07 to 11/20/10
07/02/01	07/02/11	Non-Qualified	6,500	$	68.75	6,500	6,500	0	6,500	0	0	11/30/07 to 07/02/11
11/19/01	11/19/11	Non-Qualified	26,725	$	68.10	26,725	26,725	0	26,725	0	0	11/30/07 to 11/19/11
11/18/02	11/18/12	Non-Qualified	32,401	$	67.90	32,401	32,401	0	32,401	0	0	11/30/07 to 11/18/12
01/08/03	01/08/13	Non-Qualified	16,000	$	62.48	16,000	16,000	0	16,000	0	0	11/30/07 to 01/08/13
11/17/03	11/17/13	Non-Qualified	44,477	$	61.38	44,477	44,477	0	44,477	0	0	11/30/07 to 11/17/13
11/17/03	11/17/13	Non-Qualified	5,000	$	61.38	5,000	5,000	0	5,000	0	0	11/30/07 to 11/17/13
08/23/04	08/23/14	Non-Qualified	85,000	$	44.15	85,000	85,000	0	85,000	0	0	11/30/07 to 08/23/14
09/02/05	09/02/12	Non-Qualified	52,076	$	58.88	52,076	26,038	17,027	43,065	0	9,011	11/30/07 to 09/02/12
09/02/05	09/02/12	Restricted	7,439	$	0.00	4,839	2,359	1,853	4,212	2,600	627	N/A	First tranche lapsed on 9/2/06; additional 121 shares withheld on 9/2/07; balance deferred until 12 months after separation
08/15/06	08/15/13	Non-Qualified	46,612	$	66.34	46,612	11,653	16,307	27,960	0	18,652	11/30/07 to 08/15/13
08/15/06	08/15/13	Restricted	6,659	$	0.00	4,440	0	2,389	2,389	2,219	2,051	N/A	First tranche lapsed on 8/15/07
11/15/06	11/15/13	Non-Qualified	35,000	$	63.52	35,000	8,750	9,859	18,609	0	16,391	11/30/07 to 11/15/13
11/15/06	11/15/13	Restricted	5,000	$	0.00	5,000	1,666	1,445	3,111	0	1,889	N/A
11/15/06	11/15/13	Restricted	30,000	$	0.00	30,000	0	30,000	30,000	0	0	N/A	Deferred until 6 months after separation
11/15/06	11/15/13	Restricted	5,000	$	0.00	5,000	0	5,000	5,000	0	0	N/A
08/15/07	08/15/14	Non-Qualified	53,665	$	67.26	53,665	0	9,594	9,594	0	44,071	11/30/07 to 8/15/14
08/15/07	08/15/14	Restricted	12,489	$	0.00	12,489	0	2,232	2,232	0	10,257	N/A

Exhibit A

RELEASE

In exchange for the covenants, promises and other consideration set forth in the letter agreement dated October 31, 2007 (the “Letter Agreement”), Mark Parrish (hereinafter “Executive”) for himself, his heirs, administrators, representatives, executors, successors and assigns (collectively “Releasors”) does hereby irrevocably and unconditionally release, acquit and forever discharge Cardinal Health, Inc. (the “Company”), its subsidiaries and affiliates and their respective current and former shareholders, subsidiaries, parents, affiliates, divisions, trustees, partners, agents, directors, officers and employees, including, without limitation, all persons acting by, through, under or in concert with any of them (collectively, “Releasees”), and each of them from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, remedies, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs) of any nature whatsoever arising out of or relating to his employment relationship, or the termination of that relationship, with the Company and its subsidiaries and affiliates, known or unknown, whether in law or equity and whether arising under federal, state or local law and in particular including any claim for discrimination based upon race, color, ethnicity, sex, age (including the Age Discrimination in Employment Act of 1967, as amended (“ADEA”)), national origin, religion, disability, or any other unlawful criterion or circumstances, which the Executive and Releasors had, now have, or may have in the future against each or any of the Releasees from the beginning of the world until the date hereof.

Exclusions from Release. Anything herein to the contrary notwithstanding, nothing herein shall release the Company from any claims or damages based on (A) any right or claim that arises after the date hereof, (B) any right the Executive may have under the Offer Letter, dated November 8, 2006, (“Offer Letter”), the Letter Agreement, or any applicable equity or benefit plan, policy, program or other agreement or arrangement with the Company, including Executive’s outstanding equity agreements, or (C) the Executive’s rights to indemnification under the Company’s Code of Regulations and the indemnity agreement between the Company and the Executive. The parties agree that this Release shall not affect the rights and responsibilities of the U.S. Equal Employment Opportunity Commission (hereinafter “EEOC”) to enforce ADEA and other laws. In addition, the parties agree that this Release shall not be used to justify interfering with the Executive’s protected right to file a charge or participate in an investigation or proceeding conducted by the EEOC. The parties further agree that the Executive knowingly and voluntarily waives all rights or claims that arose prior to the date hereof that the Releasors may have against the Releasees, or any of them, to receive any benefit or remedial relief (including, but not limited to, reinstatement, back pay, front pay, damages, attorneys’ fees, experts’ fees) as a consequence of any investigation or proceeding conducted by the EEOC.

ADEA Rights. The Executive acknowledges that: (A) this entire Release is written in a manner calculated to be understood by him; (B) he has been advised to consult with an attorney before executing this Release; (C) he was given a period of twenty-one days within which to consider this Release; and (D) to the extent he executes this Release before the expiration of the twenty-one-day period, he does so knowingly and voluntarily and only after consulting his attorney. The Executive shall have the right to cancel and revoke this Release during a period of seven days following the date hereof, and this Release shall not become effective, and no money shall be paid under the Letter Agreement, until the day after the expiration of such seven-day period. The seven-day period of revocation shall commence upon the date of execution below. In order to revoke this Release, the Executive shall deliver to the Company’s Chief Legal Officer, prior to the expiration of said seven-day period, a written notice of revocation. Upon such revocation, this Release and the Letter Agreement shall be null and void and of no further force or effect.

	Date:
Mark Parrish

EX-99.1

Exhibit 99.1

7000 Cardinal Place

Dublin, OH 43017

www.cardinalhealth.com

FOR IMMEDIATE RELEASE

Contacts:

Media: Jim Mazzola (614) 757-3690 jim.mazzola@cardinal.com Investors: Bob Reflogal (614) 757-7542 bob.reflogal@cardinal.com

CARDINAL HEALTH REPORTS FIRST QUARTER RESULTS

• Revenue increases 5 percent to $22 billion

• Operating earnings up 9 percent to $490 million

• Diluted earnings per share from continuing operations rise 15 percent to $0.82 per share

• Non-GAAP diluted EPS from continuing operations increases 15 percent to $0.86 per share

• Full year EPS guidance reaffirmed, outlook revised for Healthcare Supply Chain Services-Pharmaceutical segment

DUBLIN, Ohio, Nov. 5, 2007 — Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, today reported a 15 percent increase in earnings per share during its first quarter, led by strong profit growth in its clinical and medical products businesses and ongoing programs to repurchase shares and streamline operations.

For the quarter ended Sept. 30, revenue increased 5 percent to $22 billion, operating earnings increased 9 percent to $490 million and earnings per share from continuing operations rose 15 percent to $0.82, or $0.86¹ on a non-GAAP basis.

“Our first quarter results were solid and led by very strong performance in our Clinical and Medical Products sector, which now accounts for 30 percent of segment profits,” said R. Kerry Clark, chief executive officer of Cardinal Health.

Cardinal Health also reaffirmed its annual earnings-per-share guidance, while lowering the profit outlook for its Healthcare Supply Chain Services-Pharmaceutical segment. The company continues to expect a strong second half of the fiscal year, led by continued growth in clinical and medical products and a significant increase in generic product introductions.

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Cardinal Health Reports First Quarter Results

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“We are disappointed with the performance in our Healthcare Supply Chain Services-Pharmaceutical segment, but have a positive outlook for the second half of the fiscal year for the company,” Clark said. “Our Clinical and Medical Products sector will be a key growth driver, and we also expect to benefit from new generic pharmaceutical launches and improvements in operational performance.”

Cardinal Health separately announced that Mark W. Parrish, who led the Healthcare Supply Chain Services sector, is leaving the company. Chief Financial Officer Jeffrey W. Henderson will assume the additional role of interim CEO of Healthcare Supply Chain Services until a permanent successor is named.

Q1 FY08 Summary

	Q1 FY08		Q1 FY07		Y/Y
Revenue	$	22 billion	$	21 billion	5	%
Operating Earnings	$	490 million	$	451 million	9	%
Non-GAAP Operating Earnings2	$	512 million	$	475 million	8	%
Earnings from Continuing Operations	$	303 million	$	291 million	4	%
Non-GAAP Earnings from Continuing Operations3	$	318 million	$	309 million	3	%
Diluted EPS from Continuing Operations	$	0.82	$	0.71	15	%
Non-GAAP Diluted EPS from Continuing Operations	$	0.86	$	0.75	15	%

First quarter segment results:

Healthcare Supply Chain Services Sector

• Revenue for the Healthcare Supply Chain Services-Pharmaceutical segment grew 4 percent during the quarter to $19.2 billion, with sales to non-bulk customers declining 2 percent to $10.3 billion and sales to bulk customers increasing 11 percent to $8.9 billion. Segment profit increased 6 percent to $305 million, benefiting from the $14 million adjustment of a vendor related reserve, and partially dampened by sales mix, generic market conditions, nuclear pharmacy pricing pressure and a moderation in the sale of prescription drugs.

• Revenue for the Healthcare Supply Chain Services-Medical segment increased 6 percent to $1.9 billion, with improving demand in new and existing hospital, laboratory and ambulatory customers. Segment profit declined 10 percent to $58 million due primarily to a previously disclosed change in corporate cost allocation that reduced profit by 9 percentage points. The company continues to expect a return to profitable growth in the segment later this fiscal year and made progress against that goal during the quarter with continued improvements in customer service operations and strength in its hospital supply business.

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Cardinal Health Reports First Quarter Results

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Clinical and Medical Products Sector

• Revenue for the Clinical Technologies and Services segment increased 9 percent to $649 million from continued strong demand for Alaris® and Pyxis® products. Segment profit increased 91 percent to $98 million with good sales momentum from the fourth quarter in dispensing products and a favorable mix of product revenue. The segment also benefited from a favorable comparison to the prior-year period where a $13.5 million charge was taken for the recall of Alaris SE products.

• Revenue for the Medical Products and Technologies segment increased 47 percent to $623 million, led by strong sales of new products and the addition of VIASYS Healthcare, acquired by Cardinal Health in June. Segment profit grew 24 percent to $57 million and benefited from the integration of VIASYS, which remains ahead of the company’s schedule.

Additional first quarter and recent highlights include:

• Repurchasing approximately $600 million of Cardinal Health shares during the quarter and announcing an additional two-year, $2 billion repurchase authorization in August.

• Introducing several new products, including Esteem Micro surgical gloves made from a proprietary, latex-free material; new Presource® surgical kits for cosmetic procedures and to help prevent central line infections; the LTV 1150 ventilator for home use; and CareFusion™ Transfusion Verification with Rapid Infusion for use in hospital emergency rooms.

• Signing an exclusive marketing agreement with Sentry Data Systems to offer eligible hospitals and health care facilities technology services that help cost-efficiently extend care to the uninsured and underinsured under the federal 340B Drug Pricing program.

• Launching the $1 million, Cardinal Health Patient Safety Challenge Grant program to support initiatives to improve safety in U.S. hospitals. More than 700 hospitals responded to the challenge and are competing for 30 to 40 grants.

• Breaking ground on a $50 million expansion of the company’s headquarters in Ohio to consolidate its Healthcare Supply Chain Services businesses.

Outlook

Cardinal Health reiterated its fiscal 2008 guidance range of $3.95 to $4.15 for non-GAAP diluted EPS from continuing operations. In addition, the company revised the outlook for its Healthcare Supply Chain Services-Pharmaceutical segment, which is now expected to grow profit during the year below its long term goal of 7 to 10 percent growth. Cardinal Health previously said profit growth for this segment was expected to be in line with the long term range.

Conference Call

Cardinal Health will host a conference call and webcast at 8:30 a.m. EST to discuss the results. To access the call and corresponding slide presentation, go to the Investor page at www.cardinalhealth.com. The conference call may also be accessed by calling 617-213-4857, passcode 21392080. An audio replay will be available until 11:30 p.m. EST on Nov. 7 at 617-801-6888, passcode 50524989. A transcript and audio replay will also be available at www.cardinalhealth.com.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is an $87 billion, global company serving the health care industry with products and services that help hospitals, physician

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Cardinal Health Reports First Quarter Results

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offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients. With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market leading technologies, including Alaris® IV pumps, Pyxis® automated dispensing systems, MedMined™ infection surveillance services and the CareFusion™ patient identification system. The company also manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide. Ranked No. 19 on the Fortune 500 and No. 1 in its sector on Fortune’s ranking of Most Admired firms, Cardinal Health employs more than 40,000 people on five continents. More information about the company may be found at www.cardinalhealth.com.

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¹ Non-GAAP diluted EPS from continuing operations: Non-GAAP earnings from continuing operations divided by diluted weighted average shares outstanding.

² Non-GAAP operating earnings: Operating earnings excluding special items and impairment charges and other.

³ Non-GAAP earnings from continuing operations: Earnings from continuing operations excluding special items and impairment charges and other, both net of tax.

A reconciliation of the differences between these non-GAAP financial measures and their most directly comparable GAAP financial measures is provided in the attached tables and at http://www.cardinalhealth.com.

This news release 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 timing of generic introductions and the frequency or rate of branded pharmaceutical price appreciation or generic pharmaceutical price deflation; 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; successful integration of Cardinal Health and VIASYS Healthcare and the ability to achieve synergies from the acquisition; and general economic and market conditions. This news release reflects management’s views as of Nov. 5, 2007. Except to the extent required by applicable law, Cardinal Health undertakes no obligation to update or revise any forward-looking statement.

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

	First Quarter
(in millions, except per Common Share amounts)	2008			2007			% Change
Revenue	$	21,973.4		$	20,937.5		5	%
Cost of products sold		20,631.2			19,737.0		5	%
Gross margin	$	1,342.2		$	1,200.5		12	%
Selling, general and administrative expenses		830.1			725.5		14	%
Impairment charges and other		(0.2	)		1.7		N.M.
Special items:
Restructuring charges		14.8			11.8		N.M.
Acquisition integration charges		5.4			1.9		N.M.
Litigation and Other		2.3			8.4		N.M.
Operating earnings	$	489.8		$	451.2		9	%
Interest expense and other		42.9			37.8		13	%
Earnings before income taxes and discontinued operations	$	446.9		$	413.4		8	%
Provision for income taxes		143.7			122.0		18	%
Earnings from continuing operations	$	303.2		$	291.4		4	%
Loss from discontinued operations (net of tax (expense) / benefit of $(2.0) and $19.8 for the first quarter of fiscal 2008 and 2007, respectively)		(1.4	)		(20.7	)	N.M.
Net earnings	$	301.8		$	270.7		11	%
Basic Earnings (Loss) per Common Share:
Continuing operations	$	0.83		$	0.72		15	%
Discontinued operations		—			(0.05	)	N.M.
Net basic earnings per Common Share	$	0.83		$	0.67		24	%
Diluted Earnings (Loss) per Common Share:
Continuing operations	$	0.82		$	0.71		15	%
Discontinued operations		—			(0.05	)	N.M.
Net diluted earnings per Common Share	$	0.82		$	0.66		24	%
Weighted Average Number of Shares Outstanding:
Basic		363.0			404.5
Diluted		370.2			413.0

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	September 30,		June 30,
(in millions)	2007		2007
Assets
Cash and equivalents	$	1,289.6	$	1,308.8
Short-term investments available for sale		—		132.0
Trade receivables, net		4,904.7		4,714.4
Current portion of net investment in sales-type leases		369.1		354.8
Inventories		7,150.8		7,383.2
Prepaid expenses and other		619.0		651.3
Total current assets	$	14,333.2	$	14,544.5
Property and equipment, net		1,683.1		1,647.0
Net investment in sales-type leases, less current portion		830.5		820.7
Goodwill and other intangibles, net		5,822.8		5,860.9
Other assets		328.5		280.7
Total assets	$	22,998.1	$	23,153.8
Liabilities and Shareholders’ Equity
Current portion of long-term obligations and other short-term borrowings	$	386.8	$	16.0
Accounts payable		9,099.0		9,162.2
Other accrued liabilities		1,623.0		2,247.3
Liabilities from businesses held for sale and discontinued operations		5.2		34.2
Total current liabilities	$	11,114.0	$	11,459.7
Long-term obligations, less current portion and other short-term borrowings		3,347.5		3,457.3
Deferred income taxes and other liabilities		1,468.4		859.9
Total shareholders’ equity		7,068.2		7,376.9
Total liabilities and shareholders’ equity	$	22,998.1	$	23,153.8

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	First Quarter
(in millions)	2008			2007
Cash Flows From Operating Activities:
Net earnings	$	301.8		$	270.7
Loss from discontinued operations		1.4			20.7
Earnings from continuing operations	$	303.2		$	291.4
Adjustments to reconcile earnings from continuing operations to net cash provided by operating activities:
Depreciation and amortization		94.9			78.4
Asset impairments		(0.2	)		1.7
Equity compensation		26.1			37.4
Provision for bad debts		5.0			5.4
Change in operating assets and liabilities, net of effects from acquisitions:
(Increase) / decrease in trade receivables		(191.9	)		107.0
Decrease in inventories		232.4			119.8
Increase in net investment in sales-type leases		(24.1	)		(20.9	)
Decrease in accounts payable		(63.2	)		(131.5	)
Other accrued liabilities and operating items, net		57.0			181.8
Net cash provided by operating activities—continuing operations	$	439.2		$	670.5
Net cash (used in) / provided by operating activities—discontinued operations		(30.4	)		16.1
Net cash provided by operating activities	$	408.8		$	686.6
Cash Flows From Investing Activities:
Acquisition of subsidiaries, net of divestitures and cash acquired	$	(88.1	)	$	(64.5	)
Proceeds from sale of property and equipment		2.5			3.6
Additions to property and equipment		(91.5	)		(68.7	)
Sale of investment securities available for sale, net		131.9			41.9
Net cash used investing activities—continuing operations	$	(45.2	)	$	(87.7	)
Net cash provided by investing activities—discontinued operations		—			3.6
Net cash used in investing activities	$	(45.2	)	$	(84.1	)
Cash Flows From Financing Activities:
Net change in commercial paper and short-term borrowings	$	232.0		$	105.4
Reduction of long-term obligations		(13.0	)		(27.8	)
Proceeds from long-term obligations, net of issuance costs		0.1			1.7
Proceeds from issuance of Common Shares		105.5			57.3
Tax benefits from exercises of stock options		11.6			12.5
Dividends on Common Shares		(44.3	)		(37.0	)
Purchase of treasury shares		(674.7	)		(445.3	)
Net cash used in financing activities—continuing operations	$	(382.8	)	$	(333.2	)
Net cash used in financing activities—discontinued operations		—			(12.5	)
Net cash used in financing activities	$	(382.8	)	$	(345.7	)
Net (decrease) / increase in cash and equivalents		(19.2	)		256.8
Cash and equivalents at beginning of period	$	1,308.8		$	1,187.3
Cash and equivalents at end of period	$	1,289.6		$	1,444.1

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

BUSINESS ANALYSIS

TOTAL COMPANY

	First Quarter						Non-GAAP First Quarter
(in millions)	2008			2007			2008			2007
Revenue
Amount	$	21,973		$	20,938
Growth Rate		5	%		11	%
Operating Earnings
Amount	$	490		$	451		$	512		$	475
Growth Rate		9	%		23	%		8	%		23	%
Earnings from Continuing Operations
Amount	$	303		$	291		$	318		$	309
Growth Rate		4	%		24	%		3	%		24	%

Refer to the GAAP / Non-GAAP Reconciliation for Non-GAAP calculations.

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

SEGMENT BUSINESS ANALYSIS

HEALTHCARE SUPPLY CHAIN SERVICES
	First Quarter
(in millions)	2008			2007
PHARMACEUTICAL
Revenue
Amount	$	19,221		$	18,533
Growth Rate		4	%		12	%
Mix		86	%		87	%
Segment Profit 1
Amount	$	305		$	289
Growth Rate		6	%		28	%
Mix		59	%		64	%
Segment Profit Margin		1.59	%		1.56	%
MEDICAL
Revenue
Amount	$	1,921		$	1,806
Growth Rate		6	%		2	%
Mix		8	%		8	%
Segment Profit 1
Amount	$	58		$	64
Growth Rate		(10	)%		(1	)%
Mix		11	%		14	%
Segment Profit Margin		2.99	%		3.55	%
CLINICAL AND MEDICAL PRODUCTS
	First Quarter
(in millions)	2008			2007
CLINICAL TECHNOLOGIES AND SERVICES
Revenue
Amount	$	649		$	594
Growth Rate		9	%		3	%
Mix		3	%		3	%
Segment Profit 1
Amount	$	98		$	51
Growth Rate		91	%		(10	)%
Mix		19	%		12	%
Segment Profit Margin		15.14	%		8.66	%
MEDICAL PRODUCTS AND TECHNOLOGIES
Revenue
Amount	$	623		$	424
Growth Rate		47	%		11	%
Mix		3	%		2	%
Segment Profit 1
Amount	$	57		$	46
Growth Rate		24	%		36	%
Mix		11	%		10	%
Segment Profit Margin		9.13	%		10.86	%

¹ Refer to definitions for an explanation of segment profit.

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

ASSET MANAGEMENT ANALYSIS

	First Quarter
	2008		2007
Receivable Days	22.2		16.9
Days Inventory on Hand	28		30
Debt to Total Capital	35	%	26	%
Net Debt to Capital	26	%	11	%
Return on Equity	16.7	%	12.8	%
Non-GAAP Return on Equity	17.5	%	13.6	%
Return on Invested Capital	6.57	%	5.14	%
Non-GAAP Return on Invested Capital	7.50	%	5.93	%
Effective Tax Rate from Continuing Operations	32.2	%	29.5	%
Non-GAAP Effective Tax Rate from Continuing Operations	32.3	%	29.4	%

Refer to the GAAP / Non-GAAP Reconciliation for Non-GAAP calculations.

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

SCHEDULE OF NOTABLE ITEMS

	First Quarter
(in millions, except per Common Share amounts)	2008			2007
Special Items
Restructuring charges	$	(14.8	)	$	(11.8	)
Acquisition integration charges		(5.4	)		(1.9	)
Litigation and other		(2.3	)		(8.4	)
Total special items	$	(22.5	)	$	(22.1	)
Tax benefit		7.7			5.8
Special items, net of tax	$	(14.8	)	$	(16.3	)
Decrease to diluted EPS from continuing operations	$	(0.04	)	$	(0.04	)
Impairment Charges and Other
Impairment charges and other	$	0.2		$	(1.7	)
Tax (expense) / benefit		(0.1	)		0.6
Net impairment charges and other, net of tax	$	0.1		$	(1.1	)
Decrease to diluted EPS from continuing operations	$	—		$	—
Weighted Average Number of Diluted Shares Outstanding		370.2			413.0

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter 2008
(in millions, except per Common Share amounts)	GAAP			Special Items		Impairment Charges and Other		Non-GAAP
Operating Earnings
Amount	$	490		$	23		—	$	512
Growth Rate		9	%						8	%
Provision for Income Taxes	$	144		$	8		—	$	151
Earnings from Continuing Operations
Amount	$	303		$	15		—	$	318
Growth Rate		4	%						3	%
Diluted EPS from Continuing Operations
Amount	$	0.82		$	0.04		—	$	0.86
Growth Rate		15	%						15	%
	First Quarter 2007
	GAAP			Special Items		Impairment Charges and Other		Non-GAAP
Operating Earnings
Amount	$	451		$	22	$	2	$	475
Growth Rate		23	%						23	%
Provision for Income Taxes	$	122		$	6	$	1	$	128
Earnings from Continuing Operations
Amount	$	291		$	16	$	1	$	309
Growth Rate		24	%						24	%
Diluted EPS from Continuing Operations
Amount	$	0.71		$	0.04		—	$	0.75

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

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter
(in millions)	2008			2007
GAAP Return on Equity		16.7	%		12.8	%
Non-GAAP Return on Equity
Net earnings	$	301.8		$	270.7
Special items, net of tax, in continuing operations		14.8			16.3
Special items, net of tax, in discontinued operations		—			1.4
Adjusted net earnings	$	316.6		$	288.4
Annualized	$	1,266.4		$	1,153.6
Divided by average shareholders’ equity 1	$	7,222.6		$	8,455.9
Non-GAAP return on equity		17.5	%		13.6	%
	First Quarter
(in millions)	2008			2007
GAAP Return on Invested Capital		6.57	%		5.14	%
Non-GAAP Return on Invested Capital
Net earnings	$	301.8		$	270.7
Special items, net of tax, in continuing operations		14.8			16.3
Special items, net of tax, in discontinued operations		—			1.4
Interest expense and other, net of tax		27.5			23.6
Adjusted net earnings	$	344.1		$	312.0
Annualized	$	1,376.4		$	1,248.0
Divided by average total invested capital 2	$	18,365.9		$	21,050.9
Non-GAAP return on invested capital		7.50	%		5.93	%

¹ The average shareholders’ equity shown above is calculated using the average of the prior years’ fourth quarter and the current quarter.

² The average total invested capital shown above is calculated using the average of the prior years’ quarter and the current quarter. 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. Unrecorded goodwill is $7.5 billion and $9.7 billion, respectively, for the September 30, 2007 and 2006 calculations. 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 and $46.6 million at June 30, 2006 and September 30, 2006, respectively.

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CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter
(in millions)	2008			2007
GAAP Effective Tax Rate from Continuing Operations		32.2	%		29.5	%
Non-GAAP Effective Tax Rate from Continuing Operations
Earnings before income taxes and discontinued operations	$	446.9		$	413.4
Special items		22.5			22.1
Adjusted earnings before income taxes and discontinued operations	$	469.4		$	435.5
Provision for income taxes	$	143.7		$	122.0
Special items tax benefit		7.7			5.8
Adjusted provision for income taxes	$	151.4		$	127.8
Non-GAAP effective tax rate from continuing operations		32.3	%		29.4	%
	First Quarter
	2008			2007
Debt to Total Capital		35	%		26	%
Net Debt to Capital
Current portion of long-term obligations and other short-term borrowings	$	386.8		$	280.1
Long-term obligations, less current portion and other short-term borrowings		3,347.5			2,616.0
Debt	$	3,734.3		$	2,896.1
Cash and equivalents		(1,289.6	)		(1,444.1	)
Short-term investments available for sale		—			(456.5	)
Net debt	$	2,444.7		$	995.5
Total shareholders’ equity	$	7,068.2		$	8,421.1
Capital	$	9,512.9		$	9,416.6
Net debt to capital		26	%		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.

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

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)

###

EX-99.2

Exhibit 99.2

Use of Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”), Cardinal Health, Inc.’s (the “Company’s”) earnings release contains non-GAAP financial measures. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has provided reconciliations of the historical non-GAAP financial measures to the most directly comparable historical GAAP financial measures. Management encourages readers to rely upon the GAAP numbers, but includes the amounts that have been adjusted as a supplemental metric to assist readers. Definitions of the non-GAAP financial measures are included in the earnings release.

Non-GAAP operating earnings and presentations derived from it (growth rate calculation). The Company presents the non-GAAP financial measure “non-GAAP operating earnings” and presentations derived from this measure. This non-GAAP financial measure excludes special items and impairment charges and other.

The Company classifies restructuring charges, acquisition integration charges and certain litigation and other items as special items. A restructuring activity is a program whereby the Company fundamentally changes its operations such as closing facilities, moving a product to another location or outsourcing the production of a product. Restructuring activities may also involve substantial re-alignment of the management structure of a business unit in response to changing market conditions. Restructuring charges are comprised primarily of employee-related costs, facility exit and other costs and asset impairments.

Acquisition integration charges include costs to integrate acquired companies. Acquisition integration charges are comprised primarily of employee-related costs, asset impairments and other exit costs, in-process research and development costs and other integration costs.

Litigation classified as special items consists of settlements of significant lawsuits that are infrequent, non-recurring or unusual in nature. The Company also classified legal fees and document preservation and production costs incurred in connection with the previously-disclosed SEC investigation and the related Audit Committee internal review and related matters as special items. For further information regarding these investigations and their results, see the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2007.

The Company classifies certain asset impairments related to restructurings in special items. Asset impairments and gains and losses from the sale of assets not eligible to be classified as special items or discontinued operations are classified within impairment charges and other within the consolidated statements of earnings.

For further discussion of items classified as special items and impairment charges and other, see the notes to the financial statements contained in the Company’s Annual and Quarterly Reports on Form 10-K and Form 10-Q.

Management uses non-GAAP operating earnings to evaluate the Company’s performance. As the Company’s core business is providing healthcare products and services to the healthcare industry, management finds it useful to use financial measures that do not include charges and gains associated with restructuring, merger-related activity and litigation and other asset impairments and gains and losses from the sale of assets. While these special items and impairment charges and other may be recurring, management believes that these items and charges are not reflective of the day-to-day offering of its products and services and relate more to strategic, multi-year corporate actions, without predictable trends, that may obscure the trends and financial performance of the Company’s core business.

The limitation associated with using this non-GAAP measure is that the measure excludes items that impact the Company’s current period operating results. In most cases, the excluded items include transactions that reflect cash costs to the Company. This limitation is best addressed by using this non-GAAP measure in combination with operating earnings (the most comparable GAAP measure) because the non-GAAP measure does not reflect items that impact current period operating results and may be higher than the most comparable GAAP measure. Management believes that investors may find it useful to evaluate the components of special items and impairment charges and other separately and in the aggregate when reviewing the Company’s performance.

Non-GAAP earnings from continuing operations and presentations derived from it (per share and growth rate calculations). The Company presents the non-GAAP financial measure “non-GAAP earnings from continuing operations” and presentations derived from this measure. This non-GAAP financial measure excludes special items, net of tax, and impairment charges and other, net of tax. See the discussion of special items and impairment charges and other above under the heading “non-GAAP operating earnings and presentations derived from it (growth rate calculation)” for information regarding the components of the Company’s special items and impairment charges and other classifications.

Management uses this non-GAAP measure to evaluate the Company’s performance. As the Company’s core business is providing healthcare products and services to the healthcare industry, management finds it useful to use financial measures that do not include charges and gains associated with restructuring, merger-related activity and litigation and other asset impairments and gains and losses from the sale of assets. While these special items and impairment charges and other maybe recurring, management believes that these items and charges are not reflective of the day-to-day offering of its products and services and relate more to strategic, multi-year corporate actions, without predictable trends, that may obscure the trends and financial performance of the Company’s core business.

The limitation associated with using this non-GAAP measure is that this measure excludes items that impact the Company’s current period operating results. In most cases, the excluded items include transactions that reflect cash costs to the Company. This limitation is best addressed by using this non-GAAP measure in combination with earnings from continuing operations (the most comparable GAAP measure) because the non-GAAP measure does not reflect items that impact current period operating results and may be higher than the most comparable GAAP measure. Management believes that investors may find it useful to evaluate the components of special items and impairment charges and other separately and in the aggregate when reviewing the Company’s performance.

Non-GAAP return on equity. The Company presents the non-GAAP financial measure “non-GAAP return on equity.” This non-GAAP financial measure excludes special items, net of tax, from the numerator of the calculation. See the discussion of special items above under the heading “non-GAAP operating earnings and presentations derived from it (growth rate calculation)” for information regarding the components of the Company’s special items classification.

Management uses this non-GAAP measure to evaluate the Company’s performance. As the Company’s core business is providing healthcare products and services to the healthcare industry, management finds it useful to use a financial measure that does not include charges and gains associated with restructuring, merger-related activity and litigation. While these special items may be recurring, management believes that these items are not reflective of the day-to-day offering of its products and services and relate more to strategic, multi-year corporate actions, without predictable trends, that may obscure the trends and financial performance of the Company’s core business.

The limitation associated with using this non-GAAP measure is that this measure excludes items that impact the Company’s current period operating results. In most cases, the excluded special items include transactions that reflect cash costs to the Company. This limitation is best addressed by using this non-GAAP measure in combination with return on equity (the most comparable GAAP measure) because the non-GAAP measure does not reflect items that impact current period operating results and may be higher or lower than the most comparable GAAP measure. Management believes that investors may find it useful to evaluate the components of special items separately and in the aggregate when reviewing the Company’s performance.

2

Non-GAAP return on invested capital. The Company presents the non-GAAP financial measure “non-GAAP return on invested capital.” This non-GAAP financial measure excludes special items, net of tax, from the numerator of the calculation. See the discussion of special items above under the heading “non-GAAP operating earnings and presentations derived from it (growth rate calculation)” for information regarding the components of the Company’s special items classification. The numerator in calculating this non-GAAP financial measure also excludes interest expense and other because invested capital includes both debt and equity.

Management uses this non-GAAP measure to evaluate the Company’s performance. As the Company’s core business is providing healthcare products and services to the healthcare industry, management finds it useful to use a financial measure that does not include charges and gains associated with restructuring, merger-related activity and litigation. While these special items may be recurring, management believes that these items are not reflective of the day-to-day offering of its products and services and relate more to strategic, multi-year corporate actions, without predictable trends, that may obscure the trends and financial performance of the Company’s core business.

The limitation associated with using this non-GAAP measure is that this measure excludes items that impact the Company’s current period operating results. In most cases, the excluded special items include transactions that reflect cash costs to the Company. This limitation is best addressed by using this non-GAAP measure in combination with return on invested capital (the most comparable GAAP measure) because the non-GAAP measure does not reflect items that impact current period operating results and may be higher or lower than the most comparable GAAP measure. Management believes that investors may find it useful to evaluate the components of special items separately and in the aggregate when reviewing the Company’s performance.

Non-GAAP effective tax rate from continuing operations. The Company presents the non-GAAP financial measure “non-GAAP effective tax rate from continuing operations.” This non-GAAP financial measure excludes special items from the denominator of the calculation and the tax effect of special items from the numerator of the calculation. See the discussion of special items above under the heading “non-GAAP operating earnings and presentations derived from it (growth rate calculation)” for information regarding the components of the Company’s special items classification. Management uses this non-GAAP measure to evaluate the Company’s performance because special items may be taxed differently than other items.

The limitation associated with using this non-GAAP measure is that this measure excludes items that impact the Company’s current period operating results. In most cases, the excluded special items include transactions that reflect cash costs to the Company. This limitation is best addressed by using this non-GAAP measure in combination with effective tax rate from continuing operations (the most comparable GAAP measure) because the non-GAAP measure does not reflect items that impact current period operating results and may be lower than the most comparable GAAP measure. Management believes that investors may find this non-GAAP measure useful to evaluate the Company’s future performance because special items may have a different tax impact than other items.

Net debt to capital. The Company also presents the non-GAAP financial measure “net debt to capital,” which is net debt divided by capital (net debt plus total shareholders’ equity). “Net debt,” also a non-GAAP financial measure, is debt (the most comparable GAAP measure, calculated as long-term obligations plus short-term borrowings) minus cash and equivalents and short-term investments available for sale. Management believes that net debt to capital is an important measure to monitor leverage and evaluate the balance sheet. With respect to net debt, cash and equivalents and short-term investments available for sale are subtracted from the GAAP measure because they could be used to reduce the Company’s debt obligations.

The limitation associated with using net debt is that it subtracts cash and equivalents and short-term investments available for sale and therefore may imply that there is less Company debt than the most

3

comparable GAAP measure indicates. This limitation is best addressed by using net debt in combination with debt because net debt may be significantly lower than the GAAP measure. Management believes that investors may find it useful to monitor leverage and evaluate the balance sheet.

4

EX-99.3

Essential to care

Q1

FY

2008

Earnings

Call

FY 2008

November 5, 2007

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

branded pharmaceutical

price

appreciation or generic pharmaceutical price

deflation;

changes

in

the

distribution

patterns

or reimbursement

rates

for

healthcare

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;

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

November

5,

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

Agenda

Opening remarks

Kerry Clark

Chief Executive

Officer

Financial overview

Jeff Henderson

Chief Financial

Officer

Q&A

4

Financial Overview

•

FY 2008 Q1 Results –

Consolidated

•

FY 2008 Q1 Results –

Business Segments

•

Key

Financial

Value

Drivers

•

FY 2008 Financial Targets and Goals

•

HSCS

Priorities

5

Q1 FY 2008 Recap

$21,973

$490

$303

$0.82

$409

16.7%

($M)

5%

9%

4%

15%

%

Change¹

GAAP Basis

$512

$318

$0.86

17.5%

($M)

8%

3%

15%

%

Change¹

Non-GAAP Basis

1

% change over prior year quarter

Revenue

Operating Earnings

Earnings from continuing ops

Diluted EPS from continuing ops

Operating cash flow

Return on equity

6

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

Operating

Earnings/(Loss)

($M)

Diluted EPS from

Continuing

Operations

GAAP Consolidated

$490

$0.82

$451

$0.71

Special Items

($23)

($0.04)

($22)

($0.04)

Impairment Charges

& Other

$0

$0.00

($2)

$0.00

Non-GAAP

Consolidated

$512

$0.86

$475

$0.75

Q1 FY 2008

Q1 FY 2007

Q1 Operating Earnings and EPS

7

Healthcare Supply Chain Services –

Pharmaceutical

Business Analysis

Highlights:

•

Q1

revenue

up

4%

on

new

bulk

revenue

from

existing

customers

and

branded

price

inflation,

partially

offset

by

pharma

market

growth

moderation,

FY07

customer

losses

and

soft

nuclear

market

•

Segment

profit

growth

positively

impacted

by

brand

price

inflation,

improved

operating

leverage,

and a

$14M vendor related reserve reduction

•

Q1

segment

profit

negatively

impacted

by

revenue

growth/mix,

fewer

generic

launches

vs.

last

year

and generic deflation

•

Corporate

allocation

change

positively

impacted

segment

profit

growth

by

~2

pps

•

Economic profit margin¹

increased 3 basis points vs. prior year to 0.88%

Revenue

Segment Profit

19,221

305

Q1 FY08

($M)

18,553

289

Q1 FY07

($M)

4%

6%

% Change

1

Non-GAAP financial measure

8

Healthcare

Supply

Chain

Services

–

Medical

Business Analysis

Highlights:

•

Q1

revenue

up

6%

on

new

customer

sales

and

improving

demand

from

hospital,

laboratory,

and

ambulatory customers, somewhat offset by demand in kitting products

•

Segment

profit

down

10%,

driven

by

refined

corporate

allocation,

operational

investments

(e.g.,

customer service), and higher costs within kitting

•

McGaw

Park transition is on track with minimal business interruption

•

Corporate allocation change negatively impacted segment profits by ~9 pps

Revenue

Segment Profit

1,921

58

Q1 FY08

($M)

1,806

64

Q1 FY07

($M)

6%

(10%)

% Change

9

Medical Products and Technologies

Business Analysis

Highlights:

•

Q1

revenue

up

47%

driven

by

the

VIASYS

acquisition,

new

product

launches,

increased

penetration

of

existing customers, and foreign exchange

•

Segment profit up 24%, with margin dampened by purchase accounting impact from VIASYS

acquisition

•

Overall VIASYS integration on-track; FY08 synergy capture ahead of schedule

Revenue

Segment Profit

623

57

Q1 FY08

($M)

424

46

Q1 FY07

($M)

47%

24%

% Change

10

Clinical Technologies and Services

Business Analysis

Highlights:

•

Q1 revenue up 9% on continued strong demand for infusion and dispensing products

•

Segment profit up 91%, driven by favorable product mix driving higher gross margins and improved

operating leverage

•

Favorable

compare

vs.

Q1

FY07

due

to

SE

recall

related

charge

of

$13.5M

in

prior

year

•

Segment profit margin up 640 bps vs. Q1 FY07

Revenue

Segment Profit

649

98

Q1 FY08

($M)

594

51

Q1 FY07

($M)

9%

91%

% Change

11

Key Financial Value Drivers

Balance sheet management

–

Days of inventory on hand declined from 30 to 28 days Q1 FY08 vs. Q1 FY07

–

Portfolio optimization process ongoing

–

Non-GAAP ROIC up 157 bps vs. Q1 last year

Capital deployment

–

$592M

in

share

buyback

completed

in

Q1,

$720M

since

July

1st

Capital structure

–

Debt to total capital increased from 26% in Q1 FY07 to 35% in Q1

FY08

–

Net

debt

to

capital¹

increased

to

26%

vs.

11%

in

Q1

last

year

–

Non-GAAP effective tax rate for the quarter was 32.25% vs. 29.4% last year

Non-GAAP

Return

on

Equity

increased

390

bps

to

17.5%

1

Non-GAAP financial measure

12

Outlook

•

Reconfirming overall Non-GAAP EPS guidance of $3.95 to $4.15

•

3

of

4

segments

on-track

—

no

change

•

Lowering guidance

on

Supply

Chain

Pharma

to

“Below

range”

•

Profit

growth

significantly

weighted

toward

latter

part

of

2

nd

half

–

Difficult Q2 compare in Pharma

November 5, 2007

Financial targets and goals

In-line

Strong investment grade

Credit Rating:

Completed $3.1B PTS-related share repurchase in

July 2007; Announced new 2-year, $2B authorization

-

Quarterly dividend $0.12 per share

-

up to 50% of OCF, via share

repurchase and dividends

Cash Returned to

Shareholders:

In line with long-term goal

> 100% of net earnings

Operating Cash Flow:

In line with long-term goal

15% -

20%

Return

on

Equity

4

:

In range

+ 20 -

25%

+ 10 -

15%

CTS

Above range

+ 25 -

30%

+ 8 -

12%

MPT

Below range³

+ 6 -

9%

+ 4 -

7%

HSCS -

Medical

Below range³

+ 7 -

10%

+ 7 -

10%

HSCS -

Pharma

FY08 profit growth vs. long-term goal

Segment

Profit

Revenue

Segment

$3.95 -

$4.15 per share

+ 12 -

16%

EPS²:

In range

+ 10 -

13%

Op Earnings¹:

In range

+ 8 -

10%

Revenue:

Fiscal Year 2008

Over FY'08 -

FY'10 3 Year Period:

One Year Targets

Long-Term Financial Goals

1

Non-GAAP operating earnings

2

Non-GAAP diluted EPS from continuing operations

3

Refined methodology for allocation of corporate costs within HSCS in FY08 positively impacts HSCS-P profit growth by 1.8 percentage points, and negatively impacts

HSCS-M profit growth by 7.3 percentage points

4

Non-GAAP return on equity

14

HSCS Priorities

HSCS –

Medical:

•

Focus on acute care revenue growth and profitability

•

Leverage scale to lower product costs; expand off-shore sourcing

•

Continuing

focusing

on

operational

improvements

in

Presource

®

kitting

business

•

Complete McGaw Park transition

HSCS –

Pharmaceutical:

•

Drive initiatives in place to improve operational performance within core pharma distribution

–

Deliver on planned cost reductions

–

Revitalize retail selling organization and product capabilities

–

Execute strategy to enhance customer profitability through contract/generic compliance

–

Continue to drive generic sourcing and customer offering strategies

•

Within nuclear pharmacy services, adjust operating model to offset short-term market volatility

–

Longer-term, leverage Cardiolite generic event

•

Accelerate restructuring to improve operating leverage and to better align resources

Q&A

*

*

*

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)

HEALTHCARE SUPPLY CHAIN SERVICES

Pharmaceutical

	First Quarter Fiscal 2008									First Quarter Fiscal 2007
	July		August		September		Total			July		August		September		Total
Economic Profit Margin
Segment profit							$	305.4								$	288.7
Effective tax rate from continuing operations								35.9	%								35.1	%
Net operating earnings, after-tax (NOPAT)							$	195.6								$	187.5
Total assets	$	11,591.6	$	11,719.5	$	11,574.7				$	11,549.8	$	12,206.9	$	11,620.0
Less: assets from discontinued operations		—		—		—					107.5		109.4		—
Less: accounts payable		7,350.3		7,948.1		8,344.0					7,488.3		8,027.1		8,101.0
Less: other accrued liabilities		1,211.8		1,173.2		1,130.7					1,069.5		1,088.6		1,016.3
Less: liabilities from businesses held for sale		—		—		—					—		—		—
Less: deferred income taxes and other liabilities		88.8		86.7		35.0					82.1		82.1		71.0
Less: goodwill and other intangibles, net		1,351.2		1,344.9		1,345.2					1,354.5		1,361.8		1,332.4
Less: cash and equivalents		65.4		51.4		38.3					42.2		57.4		75.0
Less: short-term investments available for sale		—		—		—					—		—		—
Tangible capital	$	1,524.1	$	1,115.2	$	681.5	$	1,106.9		$	1,405.7	$	1,480.5	$	1,024.3	$	1,303.5
Multiplied by weighted average cost of capital								2.3	%								2.3	%
Capital charge							$	25.5								$	30.0
Economic profit							$	170.1								$	157.5
Revenue							$	19,220.8								$	18,532.8
Economic profit margin								0.88	%								0.85	%

⁽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 the total due to rounding

⁽³⁾ Healthcare Supply Chain Services—Pharmaceutical Tangible Capital calculated for both current and prior fiscal year includes an allocation of payables previously held at Corporate to more accurately reflect the payable balance of the segment.

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)

HEALTHCARE SUPPLY CHAIN SERVICES

Medical

	First Quarter Fiscal 2008									First Quarter Fiscal 2007
	July		August		September		Total			July		August		September		Total
Economic Profit Margin
Segment profit							$	57.5								$	64.1
Effective tax rate from continuing operations								29.3	%								29.8	%
Net operating earnings, after-tax (NOPAT)							$	40.6								$	45.0
Total assets	$	2,481.8	$	2,515.4	$	2,552.6				$	2,442.1	$	2,437.6	$	2,456.6
Less: assets from discontinued operations		—		—		—					—		—		—
Less: accounts payable		539.0		581.0		615.0					534.8		478.7		510.4
Less: other accrued liabilities		67.0		71.7		53.5					71.1		78.1		49.4
Less: liabilities from businesses held for sale		—		—		—					—		—		—
Less: deferred income taxes and other liabilities		54.6		55.4		61.3					58.2		58.1		53.0
Less: goodwill and other intangibles, net		386.0		385.9		388.2					378.8		377.8		377.7
Less: cash and equivalents		24.4		25.7		21.6					2.9		3.0		4.1
Less: short-term investments available for sale		—		—		—					—		—		—
Tangible capital	$	1,410.8	$	1,395.7	$	1,413.0	$	1,406.5		$	1,396.3	$	1,441.9	$	1,462.0	$	1,433.4
Multiplied by weighted average cost of capital								2.3	%								2.3	%
Capital charge							$	32.3								$	33.0
Economic profit							$	8.3								$	12.0
Revenue							$	1,920.7								$	1,806.1
Economic profit margin								0.43	%								0.66	%

⁽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 the total due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)

CLINICAL AND MEDICAL PRODUCTS

Clinical Technologies and Services

	First Quarter Fiscal 2008									First Quarter Fiscal 2007
	July		August		September		Total			July		August		September		Total
Economic Profit Margin
Segment profit							$	98.3								$	51.5
Effective tax rate from continuing operations								24.2	%								29.2	%
Net operating earnings, after-tax (NOPAT)							$	74.5								$	36.5
Total assets	$	4,375.8	$	4,301.6	$	4,262.2				$	3,916.6	$	4,012.1	$	3,880.1
Less: assets from discontinued operations		—		—		—					—		—		—
Less: accounts payable		82.0		63.3		62.3					91.2		84.7		79.4
Less: other accrued liabilities		575.9		592.2		250.3					277.2		287.9		223.4
Less: liabilities from businesses held for sale		—		—		—					—		—		—
Less: deferred income taxes and other liabilities		238.4		238.9		474.5					577.6		577.0		475.1
Less: goodwill and other intangibles, net		2,171.8		2,206.2		2,180.4					2,085.9		2,083.4		2,174.3
Less: cash and equivalents		217.3		195.5		175.4					66.2		60.1		82.6
Less: short-term investments available for sale		—		—		—					—		—		0.3
Tangible capital	$	1,090.4	$	1,005.5	$	1,119.3	$	1,071.7		$	818.5	$	919.0	$	845.0	$	860.8
Multiplied by weighted average cost of capital								2.3	%								2.3	%
Capital charge							$	24.6								$	19.8
Economic profit							$	49.9								$	16.7
Revenue							$	648.9								$	594.5
Economic profit margin								7.69	%								2.81	%

⁽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 the total due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

(in millions)

CLINICAL AND MEDICAL PRODUCTS

Medical Products and Technologies

	First Quarter Fiscal 2008									First Quarter Fiscal 2007
	July		August		September		Total			July		August		September		Total
Economic Profit Margin
Segment profit							$	56.9								$	46.0
Effective tax rate from continuing operations								13.1	%								7.0	%
Net operating earnings, after-tax (NOPAT)							$	49.4								$	42.8
Total assets	$	3,645.8	$	3,661.3	$	3,601.6				$	1,455.5	$	1,453.1	$	1,506.0
Less: assets from discontinued operations		—		—		—					—		—		—
Less: accounts payable		123.8		127.9		123.1					107.3		88.5		118.3
Less: other accrued liabilities		270.7		266.5		207.0					119.3		124.7		89.1
Less: liabilities from businesses held for sale		—		—		—					—		—		—
Less: deferred income taxes and other liabilities		203.5		203.9		180.0					46.2		46.6		44.4
Less: goodwill and other intangibles, net		1,945.4		1,952.2		1,910.5					454.8		453.7		453.4
Less: cash and equivalents		445.7		469.5		503.0					136.9		144.9		197.8
Less: short-term investments available for sale		—		—		—					—		—		—
Tangible capital	$	656.7	$	641.3	$	678.0	$	658.7		$	591.0	$	594.7	$	603.0	$	596.2
Multiplied by weighted average cost of capital								2.3	%								2.3	%
Capital charge							$	15.2								$	13.7
Economic profit							$	34.2								$	29.1
Revenue							$	623.2								$	423.6
Economic profit margin								5.49	%								6.87	%

⁽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 the total due to rounding

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter 2008
(in millions, except per Common Share amounts)	GAAP			Special Items		Impairment Charges and Other		Non-GAAP
Operating Earnings
Amount	$	490		$	23		—	$	512
Growth Rate		9	%						8	%
Provision for Income Taxes	$	144		$	8		—	$	151
Earnings from Continuing Operations
Amount	$	303		$	15		—	$	318
Growth Rate		4	%						3	%
Diluted EPS from Continuing Operations
Amount	$	0.82		$	0.04		—	$	0.86
Growth Rate		15	%						15	%
	First Quarter 2007
	GAAP			Special Items		Impairment Charges and Other		Non-GAAP
Operating Earnings
Amount	$	451		$	22	$	2	$	475
Growth Rate		23	%						23	%
Provision for Income Taxes	$	122		$	6	$	1	$	128
Earnings from Continuing Operations
Amount	$	291		$	16	$	1	$	309
Growth Rate		24	%						24	%
Diluted EPS from Continuing Operations
Amount	$	0.71		$	0.04		—	$	0.75

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

- more -

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter
(in millions)	2008			2007
GAAP Return on Equity		16.7	%		12.8	%
Non-GAAP Return on Equity
Net earnings	$	301.8		$	270.7
Special items, net of tax, in continuing operations		14.8			16.3
Special items, net of tax, in discontinued operations		—			1.4
Adjusted net earnings	$	316.6		$	288.4
Annualized	$	1,266.4		$	1,153.6
Divided by average shareholders’ equity 1	$	7,222.6		$	8,455.9
Non-GAAP return on equity		17.5	%		13.6	%
	First Quarter
(in millions)	2008			2007
GAAP Return on Invested Capital		6.57	%		5.14	%
Non-GAAP Return on Invested Capital
Net earnings	$	301.8		$	270.7
Special items, net of tax, in continuing operations		14.8			16.3
Special items, net of tax, in discontinued operations		—			1.4
Interest expense and other, net of tax		27.5			23.6
Adjusted net earnings	$	344.1		$	312.0
Annualized	$	1,376.4		$	1,248.0
Divided by average total invested capital 2	$	18,365.9		$	21,050.9
Non-GAAP return on invested capital		7.50	%		5.93	%

¹ The average shareholders’ equity shown above is calculated using the average of the prior years’ fourth quarter and the current quarter.

² The average total invested capital shown above is calculated using the average of the prior years’ quarter and the current quarter. 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. Unrecorded goodwill is $7.5 billion and $9.7 billion, respectively, for the September 30, 2007 and 2006 calculations. 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 and $46.6 million at June 30, 2006 and September 30, 2006, respectively.

- more -

CARDINAL HEALTH, INC. AND SUBSIDIARIES

GAAP / NON-GAAP RECONCILIATION

	First Quarter
(in millions)	2008			2007
GAAP Effective Tax Rate from Continuing Operations		32.2	%		29.5	%
Non-GAAP Effective Tax Rate from Continuing Operations
Earnings before income taxes and discontinued operations	$	446.9		$	413.4
Special items		22.5			22.1
Adjusted earnings before income taxes and discontinued operations	$	469.4		$	435.5
Provision for income taxes	$	143.7		$	122.0
Special items tax benefit		7.7			5.8
Adjusted provision for income taxes	$	151.4		$	127.8
Non-GAAP effective tax rate from continuing operations		32.3	%		29.4	%
	First Quarter
	2008			2007
Debt to Total Capital		35	%		26	%
Net Debt to Capital
Current portion of long-term obligations and other short-term borrowings	$	386.8		$	280.1
Long-term obligations, less current portion and other short-term borrowings		3,347.5			2,616.0
Debt	$	3,734.3		$	2,896.1
Cash and equivalents		(1,289.6	)		(1,444.1	)
Short-term investments available for sale		—			(456.5	)
Net debt	$	2,444.7		$	995.5
Total shareholders’ equity	$	7,068.2		$	8,421.1
Capital	$	9,512.9		$	9,416.6
Net debt to capital		26	%		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.

- more -

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

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)

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EX-99.4

Exhibit 99.4

7000 Cardinal Place

Dublin, OH 43017

www.cardinalhealth.com

FOR IMMEDIATE RELEASE

Contacts:

Media: Jim Mazzola (614) 757-3690 jim.mazzola@cardinal.com Investors: Bob Reflogal (614) 757-7542 bob.reflogal@cardinal.com

CARDINAL HEALTH ANNOUNCES SECTOR MANAGEMENT CHANGE

DUBLIN, Ohio, Nov. 5, 2007 — Cardinal Health, a global provider of products and services that improve the safety and productivity of health care, announced that effective today, Mark W. Parrish, 52, is stepping down as chief executive officer of the company’s Healthcare Supply Chain Services (HSCS) sector to pursue other interests. Chief Financial Officer Jeffrey W. Henderson, 42, will assume the additional role of interim CEO of HSCS until a permanent successor is named. The company has commenced an external search for the HSCS position.

Henderson joined Cardinal Health in 2005 from Eli Lilly Canada Inc. where he was president and general manager. He joined Lilly in 1998 as vice president and corporate treasurer, and also held the position of corporate controller. Prior to that, Henderson held various management positions at General Motors Corp. in Canada, Great Britain, Singapore and the U.S.

About Cardinal Health

Headquartered in Dublin, Ohio, Cardinal Health, Inc. (NYSE: CAH) is an $87 billion, global company serving the health care industry with products and services that help hospitals, physician offices and pharmacies reduce costs, improve safety, productivity and profitability, and deliver better care to patients. With a focus on making supply chains more efficient, reducing hospital-acquired infections and breaking the cycle of harmful medication errors, Cardinal Health develops market-leading technologies, including Alaris® IV pumps, Pyxis® automated dispensing systems, MedMined™ infection surveillance services and the CareFusion™ patient identification system. The company also manufactures medical and surgical products and is one of the largest distributors of pharmaceuticals and medical supplies worldwide. Ranked No. 19 on the Fortune 500 and No. 1 in its sector on Fortune’s ranking of Most Admired firms, Cardinal Health employs more than 40,000 people on five continents. More information about the company may be found at www.cardinalhealth.com.

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