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China Nepstar Chain Drugstore Provides Updates on Shopper's Card Program
Date:7/20/2010

SHENZHEN, China, July 20 /PRNewswire-Asia-FirstCall/ -- China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("Nepstar" or the "Company"), the largest drugstore chain in China based on the number of directly operated stores, today announced that the Company has successfully sold the 50,000th Nepstar Shopper's card.

Beginning in May 2010, Nepstar started to expand its product offerings by introducing high turnover convenience merchandise such as beverages, healthy food, household consumables, personal care products and other non-pharmaceutical products. The Company expects that the expansion of product offerings will not only meet consumers' growing demand for shopping convenience and increase Nepstar's revenue, but also help mitigate the near-term negative impact of ongoing healthcare reform and government policies, which have caused price reductions to pharmaceuticals that are on the national essential drug list and the reimbursement drug list.

In May 2010, the Company rolled out Nepstar Shopper's Card Program nationwide. The Nepstar Shopper's Card is essentially a prepaid card, and bears different face value from RMB300 to RMB3,000. Customers can use their Nepstar Shopper's Cards to purchase beverages, healthy food, household consumables, and personal care products at Nepstar stores. For every RMB6 of the face value of the Shopper's Card, card owner receives bonus credit of RMB1. Bonus credits can be used to purchase pharmaceutical and nutritional products in Nepstar stores. The Company believes that Nepstar
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SOURCE China Nepstar Chain Drugstore Ltd.
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