NEW YORK, Oct. 19 /Xinhua-PRNewswire-Firstcall/ �C- NextMart, Inc. (OTC:NXMR) (BULLETIN BOARD: NXMR) , a Chinese direct sales company, announced today that Her Village Media ("HV") has enhanced the Company's direct sales business by gifting its 50% stake in NextMart Online Catalogues ("NM Online Catalogues"), a 50-50 joint venture established by the Company and HV (http://www.hervillage.com.cn/) in June 2007. HV will transfer its 50% stake in NM Online Catalogues to the Company (for a consideration of US$1) as a goodwill measure to enhance the Company's operations for building China's leading direct sales platform using E-Fashion Catalogues. As a result of the gift, NextMart will now own 100% of NM Online Catalogues, but grant HV an 8% commission on sales generated through its direct sales channels per the original joint venture agreement between the parties. NextMart will retain access to HV's E-Magazine production capabilities, media promotion channels, and e-magazine distribution, which currently measures approximately 49 million visitors/month with the majority of these visitors being women professionals. Going forward, NextMart will deploy NM Online Catalogues as one of the Company's key channels for selling women's clothing directly to urban female consumers throughout China. The Company is also building up direct sales channels on the internet through e-commerce partnerships with large shopping malls and offline through a partnership with Shanghai Guifuren, China's well- known women's clothing retail chain. The Company's enhanced strategy is to develop an integrated online-offline direct sales model that will drive its main business growth, and fully leverage the Company's fashion design, brand management and apparel production capabilities. NextMart also announced today that it has taken steps, along with its largest shareholder, Sun Media Investment Holdings ("SMIH"), to further incentivize Mr. Ren Huiliang, the Company's CEO and Vice Chairman. Among the incentives offered to Mr. Ren are: Compensation from NextMart, Inc. NextMart will change the payment terms of the original Sales and Purchase Contract by which NextMart acquired William's Brand Administer Co., Ltd from Mr. Ren. The Company will now offer Mr. Ren all pending 3,491,379 performance shares at once rather than issuing these shares to him in several installments over a three-year period. The Board determined that this modification to the original agreement was fair given that: (1) The Company's current stock price has changed substantially since time of the signing of the William Brand acquisition agreement in April, 2006; and (2) Mr. Ren deserves a strong incentive package since he and William's Brand play a leading role within NextMart's operations. Despite these changes in the payment terms of the William Brand acquisition, Mr. Ren and William's Brand still remain obligated to the Company to attain revenues of $15 million USD, $17.5 million USD, and $20 million USD and profits of $3 million USD, $3.5 million USD and $4 million USD in the three years following the completion of the acquisition. NextMart has further committed to Mr. Ren that should the Company decide to purchase Shanghai Guifuren, the Company's sales partner in the retail space, Mr. Ren will be entitled to additional stock compensation in the Guifuren subsidiary that carries a retail focus. Compensation from SMIH. As previously disclosed, SMIH will incentivize Mr. Ren by pooling 10 million of its NextMart shares into a 50%-50% joint venture owned by SMIH and Mr. Ren. At the same time, Mr. Ren will contribute his 4 million shares in NXMR (1,163,793 already issued plus the above issuance of 3,491,379 shares) to this joint venture and further contribute an additional 6 million NXMR shares (or its equivalent value) to the joint venture over the next three years. In addition, should William Brand fulfill all of its revenue and profit guarantees to NextMart (listed above) over the next three years, SMIH will further reward Mr. Ren by pooling an additional 2 million NXMR shares into the JV. Dr. Bruno Wu, Executive Chairman of NextMart, Inc. commented, "In recent months, we have moved assertively to complete our corporate restructuring and ensure that our senior management, namely Mr. Ren, is fully incentivized to execute our direct sales vision in the women's fashion/apparel and retail sector. To support our business and best reflect our enhanced corporate structure, we have changed our fiscal year end from March 31 to September 30. This will best position us for a strong year of growth in the upcoming fiscal year, as we develop our online and offline sales channels under the strong leadership of Mr. Ren." For more information, please contact: Emilie Deng Email: DATASOURCE: NextMart, Inc. CONTACT: Emilie Deng at

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