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China Nepstar Chain Drugstore Terminates Voting Rights Agreement for Yunnan Subsidiary
Date:1/5/2009

e Audit Committee believe it is in the best interest of the Company to support the other shareholders of JZJ to pursue a public listing of the portion of the equity interest they hold in JZJ. We offer them our best wishes in preparing for a public listing. Nepstar is now focusing on higher margin core operations in more affluent markets with higher disposable income per capita. We will continue our efforts to maximize margin growth and cash generation for our shareholders in this difficult economic environment. As the leader in the retail drugstore chain market in China, Nepstar will continue to achieve organic expansion while seeking complimentary acquisitions in the key markets."

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 September 30, 2008, the Company had 2,667 stores, including the 359 stores in YunNan subsidiary, across 76 cities, one headquarters distribution center and 11 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 h
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SOURCE China Nepstar Chain Drugstore Ltd.
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