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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