China Nepstar Chain Drugstore Provides Updates on Shopper's Card Program

Wednesday, July 21, 2010 Corporate News
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SHENZHEN, China, July 20 China NepstarChain Drugstore Ltd. (NYSE: NPD) ("Nepstar" or the "Company"), the largestdrugstore chain in China based on the number of directly operated stores,today announced that the Company has successfully sold the 50,000th NepstarShopper's card.

Beginning in May 2010, Nepstar started to expand its product offerings byintroducing high turnover convenience merchandise such as beverages, healthyfood, household consumables, personal care products and othernon-pharmaceutical products. The Company expects that the expansion of productofferings will not only meet consumers' growing demand for shoppingconvenience and increase Nepstar's revenue, but also help mitigate thenear-term negative impact of ongoing healthcare reform and government policies,which have caused price reductions to pharmaceuticals that are on the nationalessential drug list and the reimbursement drug list.

In May 2010, the Company rolled out Nepstar Shopper's Card Programnationwide. The Nepstar Shopper's Card is essentially a prepaid card, andbears different face value from RMB300 to RMB3,000. Customers can use theirNepstar Shopper's Cards to purchase beverages, healthy food, householdconsumables, and personal care products at Nepstar stores. For every RMB6 ofthe face value of the Shopper's Card, card owner receives bonus credit of RMB1.Bonus credits can be used to purchase pharmaceutical and nutritional productsin Nepstar stores. The Company believes that Nepstar Shopper's Cards encourageconsumers to visit their neighborhood Nepstar stores more frequently andfacilitate their purchases of household consumables with Nepstar stores.

The Nepstar Shopper's Card Program has been well received by customerssince its introduction. By July 20, 50,000 Shopper's Cards with a total facevalue of approximately RMB19 million have been sold.

Mr. Jason Wu, Acting Chief Executive Officer of China Nepstar commented,"We are very pleased to report the rapid growth of our Shopper's Cards sales.The favorable market response to our new initiative demonstrated ourcustomers' trust in the Nepstar brand name and confidence in our newlyintroduced household consumable product line. We believe this new program canstrengthen our cash position and help increase our sales and revenue."

About China Nepstar Chain Drugstore Ltd.

China Nepstar Chain Drugstore Ltd. (NYSE:NPD - News) is China's largestretail drugstore chain based on the number of directly operated stores. As ofMarch 31, 2010, the Company had 2,559 stores across 74 cities, one headquarterdistribution center and 13 regional distribution centers in China. Nepstaruses directly operated stores, centralized procurement and a network ofdistribution centers to provide its customers with high-quality, professionaland convenient pharmacy services and a wide variety of other merchandise,including OTC drugs, nutritional supplements, herbal products, personal careproducts, family care products, and convenience products including consumables.Nepstar's strategy of centralized procurement, competitive pricing, customerloyalty programs and private label offerings has enabled it to capitalize onthe robust economic growth in China and to take advantage of the demographictrend in China to achieve a strong brand and leading market position. Forfurther information, please go to

Safe Harbor Statement

This press release contains forward-looking statements. These statementsconstitute "forward-looking" statements within the meaning of Section 21E ofthe Securities Exchange Act of 1934, as amended, and as defined in the U.S.Private Securities Litigation Reform Act of 1995. These forward-lookingstatements can be identified by terminology such as "will," "expects,""anticipates," "future," "intends," "plans," "believes," "estimates" andsimilar statements. Among other things, the quotations from management in thispress release and the Company's strategic operational plans and businessoutlook, contain forward-looking statements. Such statements involve certainrisks and uncertainties that could cause actual results to differ materiallyfrom those in the forward-looking statements. Further information regardingthese and other risks is included in the Company's filings with the U.S.Securities and Exchange Commission, including its annual report on Form 20-F.The Company does not undertake any obligation to update any forward-lookingstatement as a result of new information, future events or otherwise, exceptas required under applicable law.For more information, please contact: In China: Lucia Qian China Nepstar Chain Drugstore Ltd. Vice President, IR Tel: +86-755-2641-4065 Email: In the United States: Dixon Chen Grayling Investor Relations Tel: +1-646-284-9403 Email:

SOURCE China Nepstar Chain Drugstore Ltd.

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