China Nepstar Chain Drugstore Announces Share Buyback Program

SHENZHEN, China, Aug. 27 /Xinhua-PRNewswire-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 its board of directors has authorized a share repurchase
program. Under the terms of the approved program, China Nepstar may
repurchase up to US$40 million of worth of its issued and outstanding American
Depositary Shares ("ADSs") from time to time over the next 16 months. The
repurchases will be made on the open market at prevailing market prices or in
block trades and subject to restrictions relating to volume, price and timing.
The timing and extent of any purchases will depend upon market conditions, the
trading price of the ADSs, the nature of other investment opportunities
presented to the Company, the Company's cash flows and expected cash flows,
general economic conditions and other factors. The Company may effect buyback
transactions pursuant to Rule 10b5-1 under the Securities Exchange Act of
1934,
as amended. The Company's board of directors will review the share repurchase
program periodically, and may authorize adjustment of its terms and size
accordingly. Nepstar plans to fund repurchases made under this program from
its available cash balance.
"The decision to initiate the share repurchase program illustrates the
confidence we have in the long-term value of our company, and reiterates our
commitment to maximizing shareholder returns," said Simin Zhang, Chairman of
Nepstar. "This repurchase program reflects our commitment to increasing
shareholder value. Our strong balance sheet presents us the flexibility to
invest in a variety of avenues to drive value."
About China Nepstar Chain Drugstore Ltd.
China Nepstar Chain Drugstore Ltd. (NYSE: NPD) is China's largest retail
drugstore chain based on the number of directly operated stores. As of June
30,
2008, the Company had 2,483 stores across 73 cities, one headquarters
distribution center and 11 regional distribution centers in China. China
Nepstar uses directly operated stores, centralized procurement and a network
of 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. China Nepstar's strategy of centralized
procurement, competitive pricing, customer loyalty programs and private label
offerings has enabled it to capitalize on the robust economic growth in China
and to take advantage of the demographic trend in China to achieve a strong
brand and leading market position. For further information, please go to
http://www.nepstar.cn .
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, the
Company's strategic operational plans, as well as outlook for the second
quarter of 2008, 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 annual report on Form
20-F. 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.
For more information, please contact:

In China:
Lucia Qian
China Nepstar Chain Drugstore Ltd.
Marketing and IR Director
Tel: +86-755-2641-4065
Email: qianrt@nepstar.cn

In the United States:
Dixon Chen
Grayling Global
Investor Relations
Tel: +1-646-284-9403
Email: dchen@hfgcg.com

Ivette Almeida
Grayling Global
Media Relations
Tel: +1-646-284-9455
Email: ialmeida@hfgcg.com

SOURCE China Nepstar Chain Drugstore Ltd.

In China, Lucia Qian, Marketing and IR Director, China Nepstar Chain Drugstore
Ltd., +86-755-2641-4065, or qianrt@nepstar.cn; In the United States, Dixon
Chen, Investor Relations, Grayling Global, +1-646-284-9403, or
dchen@hfgcg.com; Ivette Almeida, Media Relations, Grayling Global, +1-646-284-
9455, or ialmeida@hfgcg.com, all for China Nepstar Chain Drugstore Ltd.