New York’s Number One Drugstore Chain Joins Growing List of Merchants to Accept MasterCard® PayPass™

New York, NY, September 06, 2005–Duane Reade, the most recognized drugstore chain in metropolitan New York, today announced that it will begin accepting MasterCard® PayPass™, a new payment option for the chain, at all of its 254 locations by the end of 2005.

“We are pleased to introduce MasterCard PayPass at our stores and believe the addition of this new offering will provide our customers with a faster, easier shopping experience,” said John K. Henry, Senior Vice President and Chief Financial Officer of Duane Reade. “We pride ourselves on the fact that Duane Reade, a leader in the drug store industry since 1960, has consistently been ahead of the curve in terms of customer service and convenience. Further, we believe this new service is testament to the fact that we remain at the forefront of merging customer service with technology, and are confident steps like this will further strengthen the Company’s leading position in the dynamic New York metropolitan market.”

MasterCard PayPass cardholders simply tap their PayPass-enabled MasterCard card on a specially-equipped terminal that utilizes a radio frequency (RF) chip to complete the transaction. Payment is completed quickly, securely and easily, without the hassle of swiping a card, fumbling for cash and coins or signing a receipt. Moments after the cardholder taps their PayPass-enabled MasterCard card, account details are communicated to the terminal and then processed through the MasterCard secure network for clearing and settlement.

“Metro New Yorkers are known for being on-the-go, so speed and convenience is of the utmost importance to them when shopping,” said Fred P. Gore, Senior Vice President, North America Acceptance, MasterCard International. “MasterCard PayPass is simpler and faster than cash, thereby significantly speeding up the check-out process and providing Duane Reade customers with the flexibility, convenience and security consumers have come to expect when making every day purchases with a MasterCard card.”

PayPass-enabled cards, like other traditional MasterCard cards, also include magnetic stripe technology, so cardholders can use the cards anywhere MasterCard is accepted around the world. The following merchants have announced that they will accept MasterCard PayPass: participating McDonald’s, 7-Eleven stores, Ritz Camera Centers, Boater’s World Marine Centers, Sheetz, Regal Entertainment Group theatres (Regal Cinemas, United Artists Theatres and Edwards Theatres) and Meijer Stores. It is also accepted at Qwest Field, M&T Bank Stadium and Lincoln Financial Field, homes of the National Football League’s Seattle Seahawks, Baltimore Ravens and Philadelphia Eagles, respectively. For more information about MasterCard PayPass, visit http://www.mastercard.com/paypass.

About Duane Reade

Founded in 1960, Duane Reade is the largest drug store chain in the metropolitan New York City area, offering a wide variety of prescription and over-the-counter drugs, health and beauty care items, cosmetics, greeting cards, photo supplies and photofinishing. Duane Reade maintains a website at http://www.duanereade.com.