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China Nepstar Chain Drugstore Announces Dividend
Date:3/16/2009

SHENZHEN, China, March 16 /PRNewswire-Aisia-FirstCall/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("China Nepstar" or the "Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced that the Board of Directors has declared a cash dividend of US$0.35 per American Depositary Share (ADS), or approximately RMB250 million, which amounts to the sum of the Company's undistributed net income in 2007 and the entire net income in 2008. The cash dividend is payable on or around May 18th, 2009, to shareholders of record as of the close of business on April 16, 2009. This dividend is China Nepstar's second cash dividend to shareholders after its initial dividend of US$0.12 per ADS on May 12, 2008.

Mr. Ian Wade, Co-Chief Executive Officer of China Nepstar, commented, "Our continued dividend payment is in line with our desire to balance the cash required in the business with that of enhancing returns to our shareholders. We have carefully reviewed our current financial position and our expected cash flows, and are confident that the Company has sufficient resources on hand to cover our operational requirements and acquisition needs in the short to medium term."

About China Nepstar Chain Drugstore Ltd.

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retail drugstore chain based on the number of directly operated stores. As of December 31, 2008, the Company had 2,709 stores across 76 cities (including 355 stores of Yunnan subsidiary, which ceased to be the Company's subsidiary in January 2009), one headquarters distribution center and 11 regional distribution centers in China. Nepstar uses directly operated stores, centralized procurement and
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SOURCE China Nepstar Chain Drugstore Ltd.
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