Kingsway International Reports Financial Results for the Three Months Ended
September 30, 2009

TORONTO , Nov. 13 /CNW/ - Kingsway International Holdings Limited (TSX: KIH), an Asian based financial services firm, today announced its financial results for the first quarter ended September 30, 2009 . All figures are in U.S. dollars unless otherwise specified.

The financial performance for Kingsway International Holdings Limited ("Kingsway" or the "Company") and its subsidiaries (collectively the "Group") for the first quarter shows improvement compared to that in the corresponding quarter last year. The improvement was resulted from the gradual recovery of the Hong Kong market from the global financial crisis. Albeit ample liquidity and the rebound of the fund raising activities kept the Hong Kong market at a high level during the quarter, the Group's financial performance was slightly impacted by the mark-to-market loss from certain investments in the Group's investment portfolio.

Financial highlights for the first quarter include:

    
    -  Net loss was $2.0 million, or $0.0252 per share, compared with a net
       loss of $9.2 million, or $0.1147 per share, for the same period last
       year;

    -  Revenue from services and other income increased to $3.5 million
       compared with $3.3 million for the same period last year; and

    -  Trading loss from financial assets held for trading was $0.2 million
       compared with a loss of $10.4 million for the same period last year.
    

Financial Results for the First Quarter

Revenue from services and other income slightly increased to $3.5 million in the current quarter from $3.3 million in the same quarter last year, attributable to the increase in market activities. A trading loss, both realized and unrealized, of $0.2 million was recorded for the quarter compared to $10.4 million for the same period last year. The Group recorded total revenue of $3.3 million in the quarter as compared to negative revenue of $7.1 million in the corresponding period last year, as a result of the recovery of the Hong Kong market amid the abundant liquidity.

Selling and administrative expenses increased 41% to $4.9 million in the first quarter from $3.5 million for the same period last year. The increase was mainly due to the increase in expenses associated with the investment and advisory group established during fiscal year 2009, as well as the exchange loss arising from the translation of the convertible debentures. The increase was partially offset by the decrease in staff costs attributable to the cost control measures implemented in other divisions of the Group.

The Group recorded a $0.07 million fair value loss on financial derivative liabilities in the current quarter, which arose from the decrease in the fair value of the conversion option derivative component of the Group's convertible debentures. Interest expenses also increased to $0.3 million from $0.06 million for the corresponding quarter last year, as a result of the increase in interest expenses incurred on the convertible debentures and the increase in bank loan interest for the IPO financing activities.

Share of profit on equity accounted investments of $0.01 million was recorded in the quarter, compared to a shared loss of $1.8 million for the same period last year. The improved results were due to the decrease in realized and unrealized losses recognized in the investment portfolio in these investee companies.

Loss before income taxes and non-controlling interests of $2.2 million was recorded for the quarter compared with $12.7 million for the same period last year. Net loss in the first quarter was $2.0 million , or $0.0252 per share, compared with $9.2 million , or $0.1147 per share, for the corresponding quarter last year.

    
    Segmented Results of Operations for the First Quarter

    -------------------------------------------------------------------------
                         Corporate           Investment in
                         Finance &             Securities   Corporate
                          Capital    Asset    & Structured  and Other
               Brokerage  Markets  Management  Investment  Activities  Total
                 $'000     $'000     $'000       $'000        $'000    $'000
    -------------------------------------------------------------------------
    Commission
     & fee
     income        2,066       609        11           6       223     2,915
    Interest
     and other
     income          186        16         -         357       (10)      549
    Trading
     (loss)/
     income           (7)      585         -        (767)        -      (189)
    -------------------------------------------------------------------------
                   2,245     1,210        11        (404)      213     3,275
    Inter-
     segment
     revenue           9         -         -           -       570       579
    Selling and
     admini-
     strative
     expenses     (2,340)     (689)      (55)       (507)   (1,907)   (5,498)
    Share of
     profit/
     (loss) of
     investments
     subject to
     significant
     influence        40         -       (12)        (14)        -        14
    Other
     expenses        (75)       (2)        -        (444)      (68)     (589)
    -------------------------------------------------------------------------
    (Loss)/
     income
     before
     income
     taxes and
     non-
     controlling
     interests      (121)      519       (56)     (1,369)   (1,192)   (2,219)
    -------------------------------------------------------------------------

    -  Brokerage

       Kingsway was ranked the Best Local Brokerage in Hong Kong by the
       Asiamoney Brokers Poll in October 2009. Kingsway has enjoyed top three
       honors for the last five consecutive years.

       Revenue for the first quarter increased 31% to $2.2 million, compared
       with $1.7 million for the same quarter last year, as a result of the
       active market conditions.

       The division recorded an overall loss of $0.1 million for the quarter,
       compared with $0.4 million for the same period last year.

    -  Corporate Finance & Capital Markets

       Total revenue of $1.2 million was recognized in the current quarter,
       compared with negative revenue of $0.4 million in the corresponding
       quarter last year. The improved results in the division were mainly
       attributable to the trading income of $0.6 million recognised from the
       unrealised gain on its investment portfolio during the quarter.

       Overall, the division generated income of $0.5 million for the
       quarter, compared with a loss of $0.6 million for the same period last
       year.

    -  Asset Management

       The division recorded total revenue of $0.01 million for the quarter,
       compared with negative revenue of $0.7 million for the same period
       last year. The loss recorded in the first quarter last year resulted
       from the loss on disposal of an investment received as management fees
       in prior years.

       The division recorded an overall loss of $0.06 million for the current
       quarter, compared with $0.8 million for the corresponding quarter last
       year.

    -  Investment In Securities and Structured Investment

       The trading loss was significantly reduced to $0.8 million in the
       quarter, from $8.4 million in the same period last year, as a result
       of the recovery of the Hong Kong market starting from the last
       quarter.

       The division recorded an overall loss of $1.4 million for the quarter,
       compared with $10.4 million in the same quarter last year.

    -  Corporate and Other Activities

       The corporate and other activities of the Group incurred an overall
       loss of $1.2 million for the quarter, compared with $0.6 million for
       the corresponding quarter last year. The significant increase in the
       loss resulted from the higher staff costs and overhead expenses
       associated with the establishment of the new investment and advisory
       group focused on the natural resources sector in the PRC in fiscal
       year 2009.
    

Dividends

At the meeting held on September 18, 2009 , the Board proposed a final dividend for fiscal year 2009 in the amount of C$0.02 per common share that will be paid on or about December 8, 2009 from contributed surplus.

Outlook

Over the previous financial year the Group operated in an extremely volatile and difficult environment for financial services firms. During this difficult fiscal year we established our Strategic Investing Group within the Company focused on natural resources, and infrastructure. Our largest asset continues to be our investment in SW Kingsway Capital Holdings Limited, which operates our Hong Kong based financial services business. The Company anticipates that the market volatility experienced over the previous fiscal year will continue to impact the growth and profitability of these Hong Kong operations. The Company anticipates continuing weaknesses in the United States and European financial services sector. However, the Company believes that the Chinese economy will continue to grow, and that China's influence as a global economic force will continue to increase, particularly in those sectors where we have focused, being natural resources - mining and energy - and infrastructure. We believe the changes we are instituting will be beneficial for our shareholders and will position the Company to be a successful financial services provider and investor in those sectors which we believe will continue to prosper from China's increasing needs for natural resources.

About Kingsway International Holdings Limited

The Company is listed on the main board of the Toronto Stock Exchange (TSX) under the symbol KIH. The Group is a middle tier financial services provider, linking the global investment community with PRC's high growth economy. In addition to engaging in proprietary investment activities, the Group offers a variety of complementary, client focused services through its capital markets and asset management divisions.

Founded in 1990, the Group operates from offices in Hong Kong , Beijing , Shanghai , Shenzhen and Toronto .

Forward-Looking (Safe Harbour) Statements

This press release contains forward-looking statements that are based on the beliefs of Management and reflect the Group'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 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. Accordingly, investors should not place undue reliance on forward-looking information. Forward-looking information is provided as of the date of this press release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.

For further information: Gary Quedado, Kingsway Group, [phone] Ext. 238, [email protected]