CNinsure Announces Acquisition of Additional 41% Equity Interests in Shandong Mintai and Ningbo Baolian

GUANGZHOU, China, April 1 /PRNewswire-Asia-FirstCall/ -- CNinsure Inc. (Nasdaq: CISG), (the "Company" or "CNinsure"), a leading independent insurance intermediary company operating in China, today announced the signing of definitive agreements to acquire additional 41% equity interests in Shandong Mintai Insurance Agency Co., Ltd. ("Shandong Mintai") and Ningbo Baolian Insurance Agency Co., Ltd. ("Ningbo Baolian"). The transaction is expected to close in the second quarter of 2010, subject to certain consents, authorizations and other customary closing conditions.

CNinsure will acquire additional 41% equity interests in both Mintai and Baolian, bringing its total shareholdings in these two agencies to 51% from the 10% it previously held. Under the agreements with the selling shareholders, the total considerations for the acquisitions are subject to downward adjustment, and CNinsure's shareholdings in the two agencies will be adjusted upwards if the agencies fail to achieve certain operational and financial targets. In addition, the selling shareholders also agree that all of Mintai's and Baolian's net income from 2010 to 2014 will be distributed to CNinsure.

Commenting on the acquisition, chairman and chief executive officer of the Company, Mr. Yinan Hu, stated, "The addition of these two agencies will greatly strengthen our capacity for insurance product distribution in Shandong and Zhejiang provinces, help us further penetrate into these two provinces and enhance our competitiveness."

About CNinsure Inc.

CNinsure is a leading independent insurance intermediary company operating in China. CNinsure's distribution network reaches many of China's most economically developed regions and affluent cities. The Company distributes a wide variety of property and casualty and life insurance products underwritten by domestic and foreign insurance companies operating in China, and provides insurance claims adjusting as well as other insurance-related services.

Forward-looking Statements

This press release contains statements of a forward-looking nature. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as "will," "expects," "believes," "anticipates," "intends," "estimates" and similar statements. Among other things, the management's quotations and the Business Outlook section contain forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about CNinsure and the industry. Potential risks and uncertainties include, but are not limited to, those relating to CNinsure's limited operating history, especially its limited experience in selling life insurance products, its ability to attract and retain productive agents, especially entrepreneurial agents, its ability to maintain existing and develop new business relationships with insurance companies, its ability to execute its growth strategy, its ability to adapt to the evolving regulatory environment in the Chinese insurance industry, its ability to compete effectively against its competitors, quarterly variations in its operating results caused by factors beyond its control and macroeconomic conditions in China and their potential impact on the sales of insurance products. All information provided in this press release is as of April 1, 2010, and CNinsure undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although CNinsure believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results. Further information regarding risks and uncertainties faced by CNinsure is included in CNinsure's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F.

SOURCE CNinsure Inc.

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