China Nepstar Chain Drugstore Signs Strategic Cooperation Ag

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) ("China Nepstar" or "the Company"), the largest drugstore chain in China, today announced that it has signed strategic cooperation agreements with 16 pre-eminent domestic and multinational suppliers of pharmaceutical and healthcare products for 2008.
These agreements were signed at an event to celebrate the initial public offering of the Company on the New York Stock Exchange attended by representatives from more than 300 manufacturers and wholesalers on December 14, 2007.

The cooperation agreements were entered into with each of Tianjin Smith Kline & French Laboratories Ltd., Bayer Healthcare Company Ltd., Eli Lilly and Company, Boehringer Ingelheim Shanghai Pharmaceuticals Co. Ltd., Wyeth Pharmaceutical Company Ltd., Hunan Taier Pharmaceutical Company Limited, Taiji Group, Shandong DONG-E E-JIAO Co. Ltd., and Kunming Dihon Medical Co., Ltd., as well as seven other suppliers of pharmaceutical and healthcare products. In addition to procuring merchandise from these suppliers, the Company will also partner with these suppliers to promote health education among Chinese consumers.

In addition, a number of prominent Chinese and multinational pharmaceutical companies, including Shandong DONG-E E-JIAO Co. Ltd., have agreed to establish exclusive manufacturing lines to manufacture certain products based on Nepstar's specifications and packaging requirements and to sell these products solely through Nepstar's network of drugstores.   

Mr. Qian Jiannong, Chief Executive Officer of Nepstar, commented, "We believe collaborating closely with key suppliers is one of our primary competitive advantages and such collaboration will enable Nepstar to continue to procure high quality and popular merchandise on favorable terms. Nepstar aims to provide its customers with a broad selection of high quality goods at reasonable prices. This has been one of the main drivers of our rapid expansion and strong brand recognition among customers and has also provided significant opportunities for our business partners. We will continue to focus on growing our business in 2008 and delivering value to all of our stakeholders."

About China Nepstar Chain Drugstore Ltd.   
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retail drugstore chain. As of September 30, 2007, the Company had 1,791 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 products, and convenience products including consumables and seasonal and promotional items. China Nepstar's strategy of competitive pricing, customer loyalty programs and private label offerings have enabled it to capitalize on the robust demographic and economic growth trends in China to achieve a strong brand and leading market position. For further information, please go to .   

Safe Harbor Statement   
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in the Company's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.

Source: China Nepstar Chain Drugstore Ltd.