Item 2.05 Costs Associated with Exit or Disposal Activities.

On February 28, 2012, Epocrates, Inc. (the "Company") filed a Current Report on Form 8-K (the "February 28, 2012 Form 8-K") regarding the Company's plans to discontinue further development of its Electronic Health Records ("EHR") product due to the future uncertainty and ongoing investment required for the EHR product and in order to focus the Company's efforts on its core business. At that time, the Company was unable to make a determination of the estimated amount or range of amounts to be incurred for each major type of cost and future cash expenditures associated therewith, as required by Item 2.05 of Form 8-K.

The Company is filing this Current Report on Form 8-K/A to amend the February 28, 2012 Form 8-K to update the disclosure provided therein under Item 2.05. The Company believes it can now make a good faith estimate of the costs expected to be incurred as it winds down its EHR business. As of the date of this filing, the Company expects to record total pre-tax charges associated with the disposal of the EHR assets and wind-down of the EHR business of approximately $4.1 million, all of which require cash expenditures. These costs are expected to consist of salaries, severance and other employee-related expenses of $2.7 million, vendor payments of $0.9 million, customer and vendor refunds of $0.4 million and other expenses of $0.1 million. For the six months ended June 30, 2012, the Company incurred pre-tax charges related to the EHR wind-down of $4.0 million, comprised of salaries, severance and other employee-related expenses of $2.6 million, vendor payments of $0.9 million, customer and vendor refunds of $0.4 million and other expenses of $0.1 million. The Company expects that the remaining estimated expense will be incurred in the three months ended September 30, 2012.

The forward-looking statements contained herein, including those relating to our expectations regarding charges, are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in the sections titled "Special Note Regarding Forward-Looking Statements" and "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the Securities and Exchange Commission ("SEC") on March 19, 2012. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

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