China INSOnline Corp. Reports '08 Fiscal Year Revenues Grew 532% to Approximately $14.04 Million; Net Income Increased 369% to Nearly $8.34 Million

BEIJING--(Marketwire - September 30, 2008) - China INSOnline Corp. (NASDAQ: CHIO), a rapidly growing integrated licensed insurance services provider, which operates www.soobao.cn, one of China's leading insurance services web portals, and commenced trading on NASDAQ in July 2008, today announced that it achieved substantial gains in revenues and net income for its fiscal year ended June 30, 2008.

According to the Company, revenues for the fiscal year ended June 30, 2008, reached $14,040,062 compared with $2,223,258 in the same period last year, while fiscal year net income grew to $8,336,357 compared with $1,778,251 in the year ended June 20, 2007. EPS increased 386% to $0.24 for the year ended June 30, 2008 from $0.07 for the year ended June 30, 2007.

The Company said that these substantial gains came primarily from a sharp increase in online advertising revenues on its www.sobao.cn insurance web portal which provides a comprehensive community forum for Chinese consumers, insurance agents and insurance companies. With channels for motor vehicles, life insurance and a third under development for property insurance, the site has attracted advertising from a growing number of agents, with revenues growing 1,151% in fiscal '08 to approximately $9.43 million, accounting for approximately 67% of the Company's total revenues in the fiscal year. The Company also said that during the year it provided services to more than 7, 670 insurance agents, primarily in Beijing -- and 86 insurance agent teams -- up strongly from the prior year.

During the fiscal year the Company said it also completed four key software development projects which were the principal contributors to the 193% increase achieved in revenues from this business segment compared to the prior year. For the year ended June 30, 2008, software development revenues were $4,298,739, or approximately 31% of total revenues in the period.

The Company also was pleased to report that its newest business sector, insurance agency services, launched in September 2007, made a positive contribution to total revenues in fiscal '08 of approximately $309,000.

Costs in Line With Growth

The Company noted that while gross profit grew nearly 479% during the fiscal year, due to the large increase in revenues and scale of operations, the consolidated cost of sales grew from 3.48% of net revenues in fiscal year 2007 to 9.56% of the higher revenues reported in fiscal year '08. The Company also noted that beginning in May 2008 it increased expenditures for advertising and promotion of the business and its web portal, and also saw increased general and administrative costs, which grew to approximately 5.9% of total revenues in fiscal year '08 from 1.94% of revenues in the prior fiscal year. In the current year, the Company said it is planning to spend an additional $1.3 million to update its computer equipment.

Balance Sheet

The Company said that as of June 30, 2008, all of its capital is equity capital and it does not have bank financing with any bank or financial institution. Further, the Company reported cash and cash equivalents as of the same date of $4,562,222.

Going Forward

Mrs. Betty Xu, Chief Executive Officer of China INSOnline Corp., stated, "We are extremely pleased with the strong reception to www.soobao.cn and are very confident of the growing role it will play in China's still infant insurance industry, particularly when coupled with the continued rapid growth we are seeing in internet usage and e-commerce in China."

She continued, "Our immediate plans are to continue to focus on broader publicizing in traditional and new media of our brand and adding regional channel agents for advertising, with a goal of making our site the largest network portal in the Chinese insurance industry and the first choice for agents and, increasingly, insurance companies to advertise in."

"At the same time," she added, "we are focused on gradually introducing Soobao to cities across China and creating a nationwide insurance supermarket combined with the power of the internet."

Mr. Zhenyu Wang, Chairman of the Board, added, "The underlying strengths that will continue to serve us well are our strong technology/internet capabilities combined with our experience in the insurance industry. Already, we have created and/or introduced to our insurance agent audience advanced business applications that make their transactions with increasingly sophisticated consumers easier and more transparent, as well as provide them with a significant marketing platform. Currently Soobao is the only site for insurance agency professionals in China."

He added, "Going forward we aim to further build on our relationships with the leading insurance companies, not only to attract their advertising, but to seek and provide the best available insurance products for our planned national market network."

About China INSOnline Corp.:

China INSOnline Corp., incorporated in Delaware and headquartered in Beijing, is a rapidly growing licensed insurance agency in The People's Republic of China. Representing major insurance underwriting firms in China, the Company offers online automobile, property and life insurance services through its industry web portal, www.soobao.cn. The Company's online platform also provides consumers, agents and insurance companies with online transaction capabilities, advertising, online inquiry, news circulation, statistical analysis and software development services. For more information, please visit www.china-insonline.com.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

                                -Tables Attached-

                                 China INSOnline

                        ------------------------- -------------------------
                                  2008                      2007
                        ------------------------- -------------------------

REVENUES                $ 14,040,062      102.22% $  2,223,258      100.00%
DISCOUNT ALLOWED             304,686        2.22%            0         N/A
                        ------------              ------------
REVENUES, NET             13,735,376      100.00%    2,223,258      100.00%
COST OF SALES              1,313,582        9.56%       77,346        3.48%
                        ------------              ------------
GROSS PROFIT              12,421,794       90.44%    2,145,912       96.52%
General &
 administrative
 expenses                    808,432        5.89%       43,150        1.94%
Selling expenses           1,130,063        8.23%       10,991        0.49%
                        ------------              ------------
OPERATING INCOME          10,483,299       76.32%    2,091,771       94.09%
Interest income, net          19,904        0.14%          289        0.01%
                        ------------              ------------
INCOME BEFORE TAXES       10,503,203       76.47%    2,092,060       94.10%
Income tax                 2,166,846       15.78%      313,809       14.11%
                        ------------              ------------
NET INCOME              $  8,336,357       60.69% $  1,778,251       79.98%
                        ============              ============



                        -------------------------
                                Variance
                        -------------------------

REVENUES                $ 11,816,804      531.51%
DISCOUNT ALLOWED             304,686         N/A
                        ------------
REVENUES, NET             11,512,118      517.80%
COST OF SALES              1,236,236     1598.32%
                        ------------
GROSS PROFIT              10,275,882      478.86%
General &
 administrative
 expenses                    765,282     1773.54%
Selling expenses           1,119,072    10181.71%
                        ------------
OPERATING INCOME           8,391,528      401.17%
Interest income, net          19,615     6787.20%
                        ------------
INCOME BEFORE TAXES        8,411,143      402.05%
Income tax                 1,853,037      590.50%
                        ------------
NET INCOME              $  6,558,106      368.80%
                        ============