Kingsway Announces Broad Settlement Ending Pennsylvania Litigation

Kingsway Financial Services Inc.

today announced a settlement and release ending all legal disputes between the Company and the Pennsylvania Insurance Department.  As previously disclosed, the Department sued the Company and twenty different charities on November 20, 2009, after Kingsway disposed of its interest in Walshire Assurance Company and Lincoln General Insurance Company in October 2009 by donating its Walshire shares to the charities.