China Nepstar (NPD) to Enter Wenshou Market with Ren Ren Hao Acquisition

October 23, 2009 9:32 AM EDT

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) today announced that it has entered into a definitive agreement with Wenzhou Ren Ren Hao Chain Drugstore Ltd. to acquire the operations of all of its eight drugstores in Wenzhou City.

This acquisition represents China Nepstar's first retail presence in Wenzhou, one of the most affluent markets in Zhejiang province in terms of consumption power. The transaction is expected to be completed by the end of 2009.

Located on the east coast of China, Wenzhou is situated between the Yangtze River delta and Pearl River delta and is Zhejiang province's most populous city with a total residential population of approximately 8 million. Together with the cities of Hangzhou and Ningbo, Wenzhou is one of the key contributors to the GDP of Zhejiang province, which is one of China's top three economic growth regions. As of June 30, 2009, China Nepstar had 186 stores in Hangzhou and 178 stores in Ningbo, and holds the largest market share in each of these markets.

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