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China Nepstar Chain Drugstore to Acquire 68 Drugstores from Ningbo New Century Medical Ltd.
Date:2/26/2008

pendent stores at the end of 2006. The top three drugstore chains in Ningbo at the end of 2006 were China Nepstar (73 outlets), Si Ming Chain Drugstore (73 outlets) and New Century (56 outlets). After acquiring the New Century stores, China Nepstar is expected to have a total of over 160 stores in Ningbo as of March 2008.

Dr. Simin Zhang, Chairman of the board of directors of Nepstar commented, "This acquisition represents our first step towards our goal of consolidating the fragmented Chinese retail drugstore industry. We will continue to execute our strategy of deepening penetration in high growth cities where we already have a presence. The acquisition of New Century's outlets will extend our market leadership and strengthen Nepstar brand in this important region."

"We plan to continue to seek synergistic acquisition opportunities throughout China to complement our robust organic growth. We believe well- identified acquisition opportunities will allow us to rapidly expand our market share, leverage our central procurement platform, and enhance our long- term value," concluded Dr. Zhang.

About China Nepstar Chain Drugstore Ltd.

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retail drugstore chain on the number of directly operated stores. As of December 31, 2007, the Company had 2,002 stores in 62 cities and 11 regional distributional centers in China. It uses directly operated stores, centralized procurement and a network of regional distribution centers to provide customers with high- quality, professional and convenient pharmacy services and a wide variety of other merchandise, including over-the-counter ("OTC") drugs, nutritional supplements, herbal products, personal care products, family care
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SOURCE China Nepstar Chain Drugstore Ltd.
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