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China Nepstar Chain Drugstore Announces Special Dividend
Date:8/24/2009

SHENZHEN, China, Aug. 24 /PRNewswire-Asia-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 special cash dividend of US$1.50 per American Depositary Share (ADS), which represents a total value to shareholders of approximately US$156 million. The distribution of the special dividend is conditional upon the approval of the relevant PRC government authorities. The special cash dividend is payable before or around December 31, 2009, to shareholders of record as of the close of business on September 25, 2009.

China Nepstar's Board of Directors has approved the special dividend after carefully reviewing the Company's past 12 months performance, current financial position and expected cash flow.

Mr. Ian Wade, Chief Executive Officer of China Nepstar, commented, "This special dividend payment enables our shareholders to participate in the Company's strong cash situation and optimizes the Company's capital structure. We believe the dividend payment will not hinder China Nepstar's ability to commit to China's healthcare retail market. We will continue to stand behind our growth strategy, focus on store network expansion and operation efficiency improvement and enhance long term shareholder value."

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 June 30, 2009, the Company had 2,312 stores across 64 cities, one headquarter dis
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SOURCE China Nepstar Chain Drugstore Ltd.
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