CNinsure (CISG) to Take RMB 800M to RMB 1.18B Cash Charge in Q4

CNinsure Inc. (Nasdaq: CISG) ("CNinsure" or the "Company"), a leading independent insurance intermediary company operating in China, today announced that it expects to record a non-cash impairment charge in the range of RMB800 million to RMB1,181 million for intangible assets and goodwill in the fourth quarter of 2011, based on preliminary results of the Company's intangible assets impairment assessment and annual goodwill impairment test, in accordance with Accounting Standards Codification 350, Intangibles - Goodwill and Other. The above charge is an estimate subject to the completion of the Company's impairment assessments.

The intangible asset and goodwill impairment charge reflects a material decline in the fair value of the Company as of December 31, 2011 and the expected adverse impact of the overall economic uncertainties in China, growth slowdown within the Chinese insurance market and the Company's strategic business transition on its earnings in the next two to three years.

The Company does not expect the non-cash impairment charge to have an adverse impact on its normal business operations, cash position or cash flows from operating activities.

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