Six Beijing Xiang Yun Kang Drugstores to be acquired by China Nepstar Chain Drugstore

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 entered into a definitive agreement with Beijing Xiang Yun Kang Drugstore, to acquire all of its six drugstores in Beijing. This acquisition will be China Nepstar's second acquisition in Beijing.

In the first ten months of 2009, the six drugstores being acquired generated unaudited revenues of approximately RMB6 million. These stores have an average store size of 140 square meters, and are located in densely populated residential areas in Beijing. Together with the five stores acquired in July 2009, all Nepstar's Beijing stores will be serviced by the Company's regional logistics center in Tianjin, where Nepstar has over 100 stores. Tianjin is approximately 120km to the southeast of Beijing.

Mr. Ian Wade, Chief Executive Officer of China Nepstar, commented, "In the second half of 2009, we are encouraged by Chinese economic recovery and revived consumer confidence, which support our decision to expand in new markets. Beijing has always been one of the most important markets for China Nepstar given the high consumption power of its local residents. Since our acquisition of Beijing Ze Run Tang to make our inroad to Beijing, we have completed the renovation and re-branding of four acquired stores so far. We are confident that we will be able to improve the profitability of these acquired stores very soon. We will continue to seek good acquisition targets in Beijing and further expand our footprint in this important market."