Exhibit 99.1

McKESSON REPORTS FISCAL 2006 SECOND QUARTER RESULTS

• Revenues of $21.6 billion, up 8%.

• Second quarter net income of $167 million, up 94%, and diluted EPS of 53 cents, up 83%.

• Net income from continuing operations of $154 million, up 79%, and diluted EPS from continuing operations of 49 cents, up 69%.

• Year-to-date cash flow from operations of $2 billion compared to $365 million for the first six months a year ago.

     SAN FRANCISCO, November 8, 2005 — McKesson Corporation (NYSE: MCK) today reported that revenues for the company’s second quarter ended September 30, 2005, were $21.6 billion, an increase of 8% over the prior year. Second quarter net income was $167 million or 53 cents per fully diluted share, compared to $86 million or 29 cents per fully diluted share in the second quarter a year ago. Second quarter net income includes an after-tax gain of $13 million or four cents per share for the sale of the McKesson BioServices business unit, which is reported as a discontinued operation. Second quarter net income from continuing operations was $154 million or 49 cents per fully diluted share.

     “Our significant improvement in operating profit and earnings per share from a year ago was due to an outstanding performance in Pharmaceutical Solutions,” said John H. Hammergren, chairman and chief executive officer. “Pharmaceutical Solutions operating profit increased 69%, reflecting our continued focus on expanding our operating margin, the progress we have made evolving our relationships with pharmaceutical manufacturers and continued growth in our generics programs. We also had another excellent quarter in Provider Technologies.”

     “Our evolving relationships with manufacturers combined with more efficient inventory management in our U.S. pharmaceutical distribution business continue to be the primary factors producing record operating cash flow. In addition, at the end of our second quarter, we benefited from some favorable timing in our working capital accounts. Year-to-date, operating cash flow was $2 billion, compared to $365 million for the first six months a year ago.”

     “This record cash flow has enabled us to continue to apply a portfolio approach to shareholder value creation — a mix of strategic acquisitions, share repurchases and dividends. Year-to-date, we have spent $575 million on acquisitions, including D&K Healthcare Resources (D&K) and Medcon, $290 million to repurchase shares and $36 million to pay dividends.”

     “McKesson was fortunate to have experienced little impact to our operations or facilities from the devastation of Hurricanes Katrina and Rita. We were proud to have played a role in providing pharmaceuticals, medical supplies and nurse triage services to the affected areas. We are continuing to support the recovery of our affected customers and employees.”

Segment Results

     “For the quarter, Pharmaceutical Solutions revenues were up 8%, reflecting growth from our customers who are winning in the marketplace, new and expanded distribution agreements, revenue growth in our Canadian operations and revenues from D&K. This revenue increase was offset in part by slowing market growth and slower growth of customer warehouse sales than we achieved a year ago.”

     “Pharmaceutical Solutions operating margin expanded 44 basis points to 1.23%, reflecting our progress with manufacturers and an increased mix of generics. Margin expansion was partially offset by increases in operating expenses, including those of D&K. We are now moving aggressively to integrate the D&K operations and deliver operating efficiencies as we retain the customer base. While execution work remains, we are making great progress, and once we have completed our integration plan, this business should be accretive to segment results next fiscal year.”

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     “Medical-Surgical Solutions revenue was up 8%, with growth across all sectors of the business. Revenue growth among alternate site customers was strong as we began seasonal shipments of flu vaccine. Operating profit was $23 million compared to $18 million in the second quarter a year ago, which included a litigation settlement charge.”

     “In Provider Technologies, revenues were up 18%, with software and software systems revenues up 32%. We continue to see strong demand for our clinical and imaging software solutions and automation systems, and are focused on accelerating the pace of our implementations. Bookings were also strong in the quarter, including several large agreements that include software, pharmacy automation, supply chain automation, cabinets and bedside scanning technology in unique solutions designed to reduce medication errors and improve efficiencies.”

     “Operating profit was up 37%, from $19 million to $26 million. We have begun integrating the Medcon cardiology solution into our overall clinical and imaging offering. This acquisition had a $3 million negative impact on segment operating profit in the quarter and will continue to be negative throughout this fiscal year, but it should be accretive to Fiscal 2007 results. With the increasingly positive trends toward more I.T. purchases by hospitals, we have also increased investments in development and sales to expand our market position over the next several years.”

Outlook

     “Turning to the balance sheet, we ended the quarter with almost $3 billion in cash. Using our strong balance sheet and significant operating cash flow, combined with our improving financial performance, we plan to continue our portfolio approach to create shareholder value.”

     “During the quarter, we repurchased $224 million of shares, completing the previous $250 million authorization and beginning a new $250 million share repurchase program approved in August. Over time, we have a goal of repurchasing shares to offset the dilution resulting from the exercise of stock options.”

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     “We are clearly pleased with the momentum we have across McKesson. Based on our positive year-to-date results and the continued progress in our business, for the fiscal year ending March 31, 2006, McKesson expects to earn $2.25 to $2.40 per fully diluted share from continuing operations, excluding any adjustments to the securities litigation reserve,” Hammergren concluded.

     The guidance range is based on a tax rate for continuing operations for Fiscal 2006 of approximately 35%, up from original guidance of 32.5%. Partially offsetting the impact of the increased tax rate is a $37 million pre-tax gain from an anti-trust settlement which will be recorded in this year’s third quarter. The EPS range also assumes approximately 315 million shares in the dilution calculation.

     As previously announced, by order entered September 28, 2005, the Honorable Ronald M. Whyte granted preliminary approval of the proposed settlement of the consolidated class action pending in the U.S. District Court for the Northern District of California and established a schedule for further proceedings, including a hearing date of January 27, 2006 on final approval of the settlement. McKesson now expects to be able to fund the pending $960 million consolidated class action settlement from cash.

Corporate Highlights

     The second quarter included the following news at the company:

• In advance of Hurricane Katrina, McKesson established a back-up network of regional distribution centers to deliver pharmaceutical products to the Gulf Coast. Following the onset of the storm, these facilities remained open over Labor Day weekend for emergency deliveries. McKesson chartered a helicopter and a plane to make deliveries to areas isolated by flooding. In addition, McKesson employees and the McKesson Foundation have contributed more than $1 million to hurricane relief efforts, including $300,000 to the McKesson Employees Relief Fund to help displaced colleagues.

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• Following McKesson’s acquisition of D&K Healthcare Resources, Inc., the company signed an amended supply agreement with D&K’s largest customer group, American Pharmacy Cooperative, Inc., (APCI), a member-owned group purchasing organization representing more than 1,400 independent pharmacies. Over the past 12 months, APCI members purchased $1.3 billion of pharmaceuticals from D&K.

• Revenues from generic sales were up 18% in the quarter, 22% year-to-date. McKesson’s strong market position was a major factor in the decision by Teva Pharmaceuticals to select McKesson as the lead distributor for its recent launch of generic Allegra. The company’s proven rapid generic distribution capabilities facilitated the product’s successful delivery to customers.

• McKesson’s Valu-Rite(R) network of independently owned pharmacies was the highest rated pharmacy chain nationwide in a survey of 20,000 pharmacy customers conducted by Wilson Health Information, a leading consumer research firm. Valu-Rite(R) pharmacists earned the highest satisfaction ratings for personal service, convenience, and access to important health information and also scored very high on providing medication safety information, coordination of care, help with managed care, advice on non-prescription products and customer service.

• McKesson signed an agreement with the Centers for Medicare & Medicaid Services (CMS) to offer a Medicare Health Support pilot program to pre-selected Medicare beneficiaries in Mississippi. McKesson will provide health education and support to approximately 20,000 pre-identified, fee-for-service Medicare beneficiaries with heart failure and/or diabetes. Beneficiaries will also have access to a free, 24X7 nurse advice line. Enrollments began in August.

• McKesson Medical-Surgical strengthened its position in the long-term care sector of the market by re-signing its largest customer, HCR-Manor Care, to a new three-year agreement.

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• McKesson signed several large contracts to supply Horizon Clinical solutions and automation products to a range of customers, including Medical University of South Carolina, a large academic medical center with more than 600 physicians; Clinton Memorial Hospital, a 100-bed community hospital in Wilmington, Ohio; and Doctor’s Medical Center, a major public hospital in San Pablo, California, near San Francisco.

Risk Factors

     Except for historical information contained in this press release, matters discussed may constitute “forward-looking statements”, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that involve risks and uncertainties that could cause actual results to differ materially from those projected, anticipated or implied. These statements may be identified by their use of forward-looking terminology such as “believes”, “expects”, “anticipates”, “may”, “should”, “seeks”, “approximates”, “intends”, “plans”, “estimates” or the negative of these words or other comparable terminology. The most significant of these risks and uncertainties are described in the company’s Form 10-K, Form 10-Q and Form 8-K reports filed with the Securities and Exchange Commission and include, but are not limited to: the resolution or outcome of pending shareholder litigation regarding the 1999 restatement of our historical financial statements; the changing U.S. healthcare environment, including the impact of potential future mandated benefits; changes in private and governmental reimbursement or in the delivery systems for healthcare products and services; governmental efforts to regulate the pharmaceutical supply chain; changes in pharmaceutical and medical-surgical manufacturers’ pricing, selling, inventory, distribution or supply policies or practices; changes in customer mix; substantial defaults in payment or a material reduction in purchases by large customers; challenges in integrating and implementing the company’s software and software system products, or the slowing or deferral of demand for these products; the company’s ability to successfully identify, consummate and integrate strategic acquisitions; changes in generally accepted accounting principles (GAAP); foreign currency

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fluctuations; and general economic conditions. The reader should not place undue reliance on forward-looking statements, which speak only as of the date they are made. The company assumes no obligation to update or revise any such statements, whether as a result of new information or otherwise.

     A Webcast of the company’s regular conference call to review financial results with the financial community is available through McKesson’s website, www.mckesson.com, live at 5 PM ET today and on replay afterwards. Shareholders are encouraged to review SEC filings and more information about McKesson, which are located on the company’s website.

About McKesson

     McKesson Corporation (NYSE: MCK) is a Fortune 15 healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes and improving the quality and safety of patient care. Over the course of its 172-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information, visit us at www.mckesson.com.

CONTACT:
Larry Kurtz, 415-983-8418
(Investors and Financial Press)
larry.kurtz@mckesson.com
Kate Rohrbach 415-983-9023
(Business and Trade Media)
kate.rohrbach@mckesson.com

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Schedule I

McKESSON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions except per share amounts)

	Quarter Ended September 30,									Six Months Ended September 30,
	FY06			FY05			Chg.			FY06			FY05			Chg.
Revenues	$	21,605		$	19,922			8	%	$	42,663		$	39,097			9	%
Cost of sales		20,711			19,191			8			40,844			37,517			9
Gross profit		894			731			22			1,819			1,580			15
Operating expenses		665			603			10			1,277			1,192			7
Securities Litigation charge		—			—			—			52			—			—
Total operating expenses		665			603			10			1,329			1,192			11
Operating income		229			128			79			490			388			26
Interest expense		(22	)		(30	)		(27	)		(47	)		(60	)		(22	)
Other income, net		35			15			133			63			30			110
Income from continuing operations before income taxes		242			113			114			506			358			41
Income taxes		(88	)		(27	)		226			(182	)		(109	)		67
Income from continuing operations		154			86			79			324			249			30
Discontinued operation, net		13			—			—			14			1			—
Net income	$	167		$	86			94		$	338		$	250			35
Earnings per common share (1)
Diluted (2) (3)
Continuing operations	$	0.49		$	0.29			69	%	$	1.03		$	0.84			23	%
Discontinued operation		0.04			—			—			0.05			—			—
Total	$	0.53		$	0.29			83		$	1.08		$	0.84			29
Basic
Continuing operations	$	0.50		$	0.29			72	%	$	1.06		$	0.85			25	%
Discontinued operation		0.04			—			—			0.05			—			—
Total	$	0.54		$	0.29			86		$	1.11		$	0.85			31
Shares on which earnings per common share were based
Diluted		316			300			5	%		315			300			5	%
Basic		308			293			5	%		305			292			4	%

(1)	Certain computations may reflect rounding adjustments.
(2)	For the quarter ended September 30, 2004 and six months ended September 30, 2005 and 2004, interest expense, net of related income taxes, of $1 million, $1 million and $3 million has been added to net income for purposes of calculating diluted earnings per share. This adjustment reflects the impact of the Company’s potentially dilutive obligations.
(3)	Diluted earnings per share, excluding the Securities Litigation charge, is as follows:

		Six Months Ended September 30,
		FY06			FY05		Chg.
Net income — as reported		$	338		$	250		35	%
Exclude:	Securities Litigation charge		52			—		—
	Estimated income tax benefit		(17	)		—		—
			35			—		—
Net income, excluding Securities Litigation charge		$	373		$	250		49	%
Diluted earnings per common share, excluding Securities Litigation charge		$	1.19		$	0.84		42	%

Schedule II

McKESSON CORPORATION
CONDENSED CONSOLIDATED INCOME INFORMATION BY BUSINESS SEGMENT
(unaudited)
(in millions)

	Quarter Ended September 30,									Six Months Ended September 30,
	FY06			FY05			Chg.			FY06			FY05			Chg.
REVENUES
Pharmaceutical Solutions
U.S. Healthcare direct distribution & services	$	12,762		$	11,625			10	%	$	25,113		$	22,625			11	%
U.S. Healthcare sales to customers’ warehouses		6,247			6,021			4			12,373			11,937			4
Subtotal		19,009			17,646			8			37,486			34,562			8
Canada distribution & services		1,467			1,258			17			2,954			2,510			18
Total Pharmaceutical Solutions		20,476			18,904			8			40,440			37,072			9
Medical–Surgical Solutions		769			714			8			1,513			1,421			6
Provider Technologies
Software & software systems		66			50			32			128			101			27
Services		259			229			13			513			451			14
Hardware		35			25			40			69			52			33
Total Provider Technologies		360			304			18			710			604			18
Revenues	$	21,605		$	19,922			8		$	42,663		$	39,097			9
GROSS PROFIT
Pharmaceutical Solutions	$	566		$	428			32		$	1,160		$	985			18
Medical–Surgical Solutions		167			162			3			336			321			5
Provider Technologies		161			141			14			323			274			18
Gross profit	$	894		$	731			22		$	1,819		$	1,580			15
OPERATING EXPENSES
Pharmaceutical Solutions	$	322		$	284			13		$	622		$	557			12
Medical–Surgical Solutions		145			145			—			286			276			4
Provider Technologies		140			125			12			273			245			11
Corporate		58			49			18			96			114			(16	)
Subtotal		665			603			10			1,277			1,192			7
Securities Litigation charge		—			—			—			52			—			—
Operating expenses	$	665		$	603			10		$	1,329		$	1,192			11
OTHER INCOME, NET
Pharmaceutical Solutions	$	8		$	5			60		$	16		$	11			45
Medical–Surgical Solutions		1			1			—			2			2			—
Provider Technologies		5			3			67			7			4			75
Corporate		21			6			250			38			13			192
Other income, net	$	35		$	15			133		$	63		$	30			110
OPERATING PROFIT
Pharmaceutical Solutions	$	252		$	149			69		$	554		$	439			26
Medical–Surgical Solutions		23			18			28			52			47			11
Provider Technologies		26			19			37			57			33			73
Operating profit		301			186			62			663			519			28
Corporate		(37	)		(43	)		(14	)		(58	)		(101	)		(43	)
Securities Litigation charge		—			—			—			(52	)		—			—
Income from continuing operations before interest expense and income taxes	$	264		$	143			85		$	553		$	418			32
STATISTICS
Operating profit as a % of revenues
Pharmaceutical Solutions		1.23	%		0.79	%		44	bp		1.37	%		1.18	%		19	bp
Medical–Surgical Solutions		2.99	%		2.52	%		47			3.44	%		3.31	%		13
Provider Technologies		7.22	%		6.25	%		97			8.03	%		5.46	%		257
Return on Stockholders’ Equity (1)		(1.3	%)		11.3	%		—

(1) Ratio is computed as the sum of net income (loss) for the last four quarters, divided by the average of stockholders’ equity for the last five quarters. Ratio includes the $810 million and $35 million after-tax Securities Litigation charges recorded in the third quarter of 2005 and the first quarter of 2006.

Schedule III

McKESSON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions)

	September 30,		March 31,
	2005		2005
ASSETS
Current Assets
Cash and cash equivalents	$	2,996	$	1,800
Receivables, net		5,855		5,721
Inventories		7,588		7,495
Prepaid expenses and other		246		346
Total		16,685		15,362
Property, Plant and Equipment, net		649		616
Capitalized Software Held for Sale		130		130
Notes Receivable		119		163
Goodwill and Other Intangibles		1,826		1,529
Other Assets		1,047		975
Total Assets	$	20,456	$	18,775
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Drafts and accounts payable	$	10,055	$	8,733
Deferred revenue		539		593
Current portion of long-term debt		6		9
Securities Litigation		1,183		1,200
Other		1,227		1,257
Total		13,010		11,792
Postretirement Obligations and Other Noncurrent Liabilities		605		506
Long-Term Debt		988		1,202
Stockholders’ Equity		5,853		5,275
Total Liabilities and Stockholders’ Equity	$	20,456	$	18,775

Schedule IV

McKESSON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in millions)

	Six Months Ended September 30,
	FY06			FY05
OPERATING ACTIVITIES
Income from continuing operations	$	324		$	249
Adjustments to reconcile to net cash provided by (used in) operating activities:
Depreciation and amortization		127			122
Securities Litigation charge, net of tax		35			—
Securities Litigation settlement payments		(69	)		—
Deferred taxes		111			123
Other non-cash items		2			7
Total		530			501
Effects of Changes In:
Receivables		62			(192	)
Inventories		253			(1,172	)
Drafts and accounts payable		1,108			1,317
Deferred revenue		101			(75	)
Taxes		29			(54	)
Proceeds from sale of notes receivable		28			39
Other		(102	)		1
Total		1,479			(136	)
Net cash provided by operating activities		2,009			365
INVESTING ACTIVITIES
Property acquisitions		(83	)		(53	)
Capitalized software expenditures		(66	)		(66	)
Acquisitions of businesses, less cash and cash equivalents acquired		(575	)		(48	)
Proceeds from sale of business		63			12
Other		3			19
Net cash used in investing activities		(658	)		(136	)
FINANCING ACTIVITIES
Repayment of debt		(20	)		(14	)
Capital stock transactions:
Issuances		282			89
Share repurchases		(290	)		—
ESOP notes and guarantees		9			13
Dividends paid		(36	)		(35	)
Other		(100	)		6
Net cash provided by (used in) financing activities		(155	)		59
Net increase in cash and cash equivalents		1,196			288
Cash and cash equivalents at beginning of period		1,800			708
Cash and cash equivalents at end of period	$	2,996		$	996