Kingsway International Holdings Limited Announces Introduction of Internationally Focused Merchant Banking Services and a Private Placement Offering of C$8,000,000 of Convertible Debentures



    HONG KONG, July 10 /CNW/ - Kingsway International Holdings Ltd (TSX: KIH)
(the "Company"), a leading Hong Kong based provider of international financial
services, announces:

    
    -   the creation of a merchant banking group ("Merchant Banking Group")
        focused on the natural resources sector in China with a particular
        emphasis on the energy, mining and related infrastructure sectors;

    -   the appointment of Mr. Michael Choi, a long standing director of the
        Company as the Managing Director of the Company with responsibility
        for Strategic Investments;

    -   a private placement offering ("Offering") of convertible unsecured
        debentures of up to C$8,000,000.
    

    At a recent meeting of the Board of Directors, the Company approved a
business plan creating a Merchant Banking Group, focused on the natural
resources sector in the emerging Chinese and Asian marketplace.
    The Company is also announcing the Offering of convertible unsecured
debentures ("Debentures"). The Debentures will mature three years from their
date of issue, bear interest at the rate of 9% per annum payable
semi-annually. The Debentures are convertible into common shares ("Shares") of
the Company at any time prior to the close of business on the earlier of
maturity and the business day immediately preceding the date fixed for
redemption at a conversion price ("Conversion Price") of C$0.80 per share. The
Company has the right to redeem the Debentures in whole or in part, at any
time after the date of issue if, and only if, the 20 day volume weighted
average of the price of the Company's shares traded on the TSX (or any other
recognised exchange where such shares are listed and posted for trading)
exceeds C$1.60. The proceeds from the sale of the Debentures will be used by
the Company to establish the new Merchant Banking Group. The completion of the
Offering is subject to TSX approval.
    The Company's principal shareholder, Sun Wah Group of Hong Kong has
confirmed that they will subscribe for C$4,500,000 of the Offering.

    About Kingsway International Holdings Limited

    The Company is listed on the Toronto Stock Exchange (TSX) under the
symbol KIH. The Group, which consists of the Company and its subsidiaries, is
a leading middle tier financial services provider, linking the global
investment community with China's high growth economy. In addition to engaging
in proprietary investment activities, the Group offers a variety of
complementary, client focused services through its corporate finance and
capital markets, brokerage and asset management divisions.
    Founded in 1990, the Group operates from offices in Hong Kong, Beijing,
Shanghai, Shenzhen and Toronto.

    Forward-Looking Statements

    This press release contains forward-looking statements that are based on
the beliefs of Management and reflect the Company's current expectations. In
certain cases, forward-looking information can be identified by the use of
words such as "estimate', "project", 'belief", "anticipate", "intend",
"expect", "plan", "predict", "may", "should", "will," or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved."
Forward-looking information contained in this press release include
information relating to the creation of the Merchant Banking Group, the focus
and operations of the Merchant Banking Group, the private placement offering
of convertible unsecured debentures, the terms of the Offering, the use of
proceeds from the Offering, and the subscription by Sun Wah Group under the
Offering. Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results, performance or
achievements to be materially different from any future results, performance
or achievements expressed or implied by the forward-looking information. There
can be no assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Material factors or risks which could
cause actual results or events to differ materially from a conclusion in such
forward-looking information include the risks that the Company may not be able
to create the merchant Banking Group, the focus and operations of the Merchant
Banking Group may change, the Company may not be able to complete the Offering
or the Offering may be completed on different terms and conditions, the
Offering may be subject to shareholder approval and such approval may not be
obtained, the Company may not be able to obtain the necessary regulatory
approvals or such approvals may be subject to conditions that are
unacceptable, the proceeds of the Offering may be used for other purposes, and
Sun Wah Group may not subscribe or complete its subscription, and risks
relating to competition, investment market uncertainty, dependence on key
personnel, employee malpractice, regulation, country and political risks,
risks relating to war, terrorist attacks and political tensions, risks
associated with expansion into international markets, inability to implement
adequate system of controls to manage future growth, impact of health hazards,
ownership and operation of real estate properties, and doing business in China
(including foreign exchange risks, political, economic and social risks, and
risks relating to the Chinese legal system). The Company cautions that the
foregoing list of material factors is not exhaustive and is subject to change.
For additional information with respect to certain of these and other factors,
refer to the risk factors section of the Company's management's discussion and
analysis dated May 14, 2008 for the periods ended March 31, 2008 filed with
the Canadian securities regulators, which is available on SEDAR at
www.sedar.com. The forward-looking information contained in this press release
represents the expectations of the Company as of the date of this press
release and, accordingly, is subject to change after such date. Readers should
not place undue importance on forward-looking information and should not rely
upon this information as of any other date. While the Company may elect to, it
does not undertake to update this information at any particular time.





For further information:

For further information: In Toronto: Gary Quedado, Kingsway Group, (416)
861-3099 Ext. 238, gquedado@kingswaygroup.ca; In Hong Kong: Douglas Betts,
Kingsway Group, (852) 2283-7309, dbetts@kingswaygroup.ca

Organization Profile

KINGSWAY INTERNATIONAL HOLDINGS LIMITED

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