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China Nepstar Chain Drugstore Launches Charitable Initiative to Promote Awareness of Low-income Working Women's Health Issues

Friday, January 18, 2008 General News J E 4
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SHENZHEN, China, Jan. 17 China NepstarChain Drugstore Ltd. (NYSE: NPD) ("China Nepstar" or "the Company"), thelargest drugstore chain in China, today announced that it would join theShenzhen Charity Federation to launch a significant charitable initiative toraise awareness of women's health issues among low-income working womenresidents in Guangdong province. The Company's contributions will includesoliciting in-store customer donations and printing and distributing brochurescontaining health tips for women. The in-store donation period will run fromJanuary 18 to March 7, 2008, in over 700 participating China Nepstar outletsin Guangdong.

The slogan for this initiative is "With a penny donated by you, a working-class sister can better know and protect her own health." The Company and theShenzhen Charity Federation will ask customers to donate their small changewhen they shop at Nepstar's stores. The over 700 Nepstar stores in GuangdongProvince are expected to generate more than 3 million transactions during the50-day period. Donation proceeds are expected to reach RMB80,000 to 100,000(US$10,800 to $13,500).

Nepstar will use the proceeds from donations to print 160,000 to 200,000copies of women's health brochure and distribute them to factories with aconcentration of low-income working women in Shenzhen and Guangzhou on March 8,2008, International Women's Day. The brochure will contain 20 pages ofinformation on the causes, symptoms, treatment and prevention of commonwomen's diseases such as vaginitis and chronic cervicitis, as well asinformation on early warning signs of breast cancer, birth control, femalenutrition, and female psychological health.

The Company has chosen Guangdong province as the launching pad for itscharitable initiative for low-income female workers, as it is estimated thatthe region accounts for 20% of the 50 million female workers in China and hasnearly one-third of China Nepstar's 2,002 outlets, as of December 31, 2007.The Company plans to roll out similar events in the Yangtze Delta region andthe Bohai Sea Bay region later this year.

Mr. Jiannong Qian, CEO of China Nepstar, said, "China Nepstar has beenengaged in philanthropy since its founding and has organized or participatedin many charitable events of this nature. As the largest directly operateddrugstore chain with a leading position in the Chinese healthcare industry, westrive to help improve the health of all Chinese people. Our retail outletsprosper from the growth of many neighborhood residential communities and wefeel it is our responsibility to give back to the communities and build long-term, mutually beneficial relationships with our customers. We will continueto spearhead charitable initiatives and do our part to promote health andcaring among as many people as possible."

About China Nepstar Chain Drugstore Ltd.

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retaildrugstore chain. As of December 31, 2007, the Company had 2,002 stores in 62cities and 11 regional distributional centers in China. It uses directlyoperated stores, centralized procurement and a network of regionaldistribution centers to provide customers with high-quality, professional andconvenient pharmacy services and a wide variety of other merchandise,including over-the-counter ("OTC") drugs, nutritional supplements, herbalproducts, personal care products, family care products, and convenienceproducts including consumables and seasonal and promotional items. ChinaNepstar's strategy of competitive pricing, customer loyalty programs andprivate label offerings has enabled it to capitalize on the robust demographicand economic growth trends in China to achieve a strong brand and leadingmarket position. For further information, please go to http://www.nepstar.cn .

Safe Harbor Statement

This press release contains forward-looking state
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