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China Nepstar Chain Drugstore Reports 92.1% Year-on-Year Increase in Operating Income for Third Quarter 2009
Date:12/1/2009

ing additional stores in selective areas of China, where economic trends are more favorable; establishing presence in lucrative markets through acquisitions; improving product mix; and increasing marketing and co-marketing programs to grow foot traffic. We are delighted to see our efforts to strengthen our product selection and broaden our price range result in positive same store sales growth and increased store traffic, which has continued into October and November."

Mr. Wade continued, "In general, we remain cautiously optimistic about the economic recovery and are pleased to see some positive elements coming together. The Chinese government's implementation of the Essential Drug List has had an adverse effect on many smaller drugstore chains. However, we at Nepstar view healthcare reform as a strategic opportunity to leverage our large retail network. We are also more optimistic on the outlook for acquisitions, as we expect more smaller-sized competitors may look to exit the sector due to increasing margin erosion on Essential Drug List products which may lead to their worsened financial conditions."

Conference Call Information

The Company will host a conference call, to be simultaneously Web cast, on Tuesday, December 1, 2009 at 8:30 a.m. Eastern Standard Time / 9:30 p.m. Beijing Time. Interested parties may participate in the conference call by dialing +1-877-407-9210 (North America) or +1-201-689-8049 (International) approximately five to ten minutes before the call start time. A live Web cast of the conference call will be available on the Nepstar Web site at http://www.nepstar.cn .

A replay of the call will be available through December 11, 2009 at 11:59 p.m. Eastern Standard Time or December 12, 2009 at 12:59 p.m. Beijing Time. An archived Web cast of the conference call will be available on the Nepstar Web site at

SOURCE China Nepstar Chain Drugstore Ltd.
Copyright©2009 PR Newswire.
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