China Jo-Jo Drugstores opens eight new retail pharmacies in Hangzhou

China Jo-Jo Drugstores, Inc. (NASDAQ CM: CJJD) (the "Company" or "China Jo-Jo"), a leading China-based retail and wholesale distributor of pharmaceutical and health care products through its own online and retail pharmacies, announced today that it opened eight new retail pharmacies in Hangzhou on January 10, 2015, a company record for same-day store openings. The Company now owns and operates a total of 61 retail drugstores in China.

The eight added drugstores are among the eleven pharmacies which the Company acquired from Hangzhou Sanhao Grand Pharmacy Chain Co., Ltd. on October 9, 2014. These pharmacies had been remodeled with significant improvement and relocated to better locations, more in line with the Company's business model of carrying thousands of pharmaceutical and healthcare products in each store, and offering better in-store experience to our customers. The new stores have been re-located to be much closer to several major residential areas, thus greatly enhancing the Company's store penetration in Hangzhou. China Jo-Jo's existing network of 61 pharmacies will also serve as potential delivery platforms when the Company unveils its Online-to-Offline (O2O) strategy in 2015.

Four of the new pharmacies are currently qualified to take Social Health Insurance ("SHI"), China's national health insurance plan aimed to provide universal health insurance coverage to Chinese citizens. The other four pharmacies have passed all SHI tests and are expected to be qualified within two or three months.Traditionally, SHI participants, who tend to be our long term customers, account for more than 50% of the Company's retail pharmacy sales.

Mr. Lei Liu, Chairman and CEO of the Company stated, "We are delighted to see the strong launch of our new pharmacies to kick off the New Year. In anticipation of Chinese government's approval for online prescription drug sales in 2015, we are making various strategic moves by focusing on product offerings, and easy accessibility of our online and offline stores."