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China Nepstar Chain Drugstore to Accept TransCard at Shenzhen Outlets
Date:4/2/2008

TransCard Service to Enhance Customer Convenience and Increase Sales

SHENZHEN, China, April 2, 2008 /Xinhua-PRNewswire-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 it has signed an agreement with Shenzhen Tong TransCard Co. Ltd., under which Nepstar will install TransCard POS equipment (TransCard POS readers) in all Shenzhen outlets to enable customers to make purchases with or recharge their TransCards. The TransCard service will add a unique convenience to a customer's shopping experience at Nepstar stores in Shenzhen, and has the potential to generate more sales for these outlets.

The TransCard, similar to the Oyster card used in London and Octopus card used in Hong Kong, is a rechargeable contactless stored value smart card used to transfer electronic payments in online or offline systems in Shenzhen. At present, it is mainly used by cardholders to pay for public transportation in Shenzhen, a city with 8.5 million residents in Guangdong province, Southern China.

TransCard was launched in Shenzhen in April 2006, with the full support of the Shenzhen municipal government. By the end of 2007, over two million cards were sold, driving 1.8 million transactions per day. Currently, one in every five residents in Shenzhen holds a TransCard. Shenzhen Tong TransCard, the issuer and operator of the TransCard service, estimates that an additional four million cards will be sold in 2008.

Nepstar is the operator of the largest drugstore chain in Shenzhen, with 311 outlets as of December 31, 2007. The Company plans to begin the installation of TransCard POS reade
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SOURCE China Nepstar Chain Drugstore Ltd.
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