SHENZHEN, China, July 20, 2010 /PRNewswire via COMTEX/ --

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("Nepstar" or the "Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced that the Company has successfully sold the 50,000th Nepstar Shopper's card.

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

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

The Nepstar Shopper's Card Program has been well received by customers since its introduction. By July 20, 50,000 Shopper's Cards with a total face value 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 our customers' trust in the Nepstar brand name and confidence in our newly introduced household consumable product line. We believe this new program can strengthen 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 largest retail drugstore chain based on the number of directly operated stores. As of March 31, 2010, the Company had 2,559 stores across 74 cities, one headquarter distribution center and 13 regional distribution centers in China. Nepstar uses directly operated stores, centralized procurement and a network of distribution centers to provide its customers with high-quality, professional and convenient pharmacy services and a wide variety of other merchandise, including OTC drugs, nutritional supplements, herbal products, personal care products, family care products, and convenience products including consumables. Nepstar's strategy of centralized procurement, competitive pricing, customer loyalty programs and private label offerings has enabled it to capitalize on the robust economic growth in China and to take advantage of the demographic trend in China to achieve a strong brand and leading market position. For further information, please go to http://www.nepstar.cn

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's strategic operational plans and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these 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-looking statement as a result of new information, future events or otherwise, except as 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: qianrt@nepstar.cn

    In the United States:
     Dixon Chen
     Grayling
     Investor Relations
     Tel:   +1-646-284-9403
     Email: dixon.chen@grayling.com

SOURCE China Nepstar Chain Drugstore Ltd.