ChinaNet Online Holdings Launches New Advertising Portal for Premier Franchises

BEIJING, May 26, 2011 (GLOBE NEWSWIRE) -- ChinaNet Online Holdings, Inc. ("ChinaNet"), (Nasdaq:CNET), a leading full-service B2B media development and internet technology company for small and medium-sized enterprises (SMEs) in the People's Republic of China, today announced that it has launched a new online advertising and marketing services portal, www.liansuo.com, to serve larger, high-value branded franchise business owners through an integrated full service platform. The service officially went live on May 25, 2011 .

Liansuo.com strives to become the leading destination for premium franchise owners and currently lists 300 new customers on its site. By creating the most comprehensive site for qualified entrepreneurs and high quality franchise opportunities and a dedicated sales team of 12 experienced individuals, Liansuo.com will quickly build a large base of loyal clients who pay recurring fees to ChinaNet for advertising, brand management and software tools.

"We are extremely excited about the growth potential for Liansuo.com," exclaimed Mr. Handong Cheng, Chairman and CEO of ChinaNet. "With thousands of successful franchise owners looking to expand across China, we have a tremendous opportunity to fill a need that is currently under served. After talking to hundreds of franchise owners and conducting over 9 months of market research, we created a comprehensive and cost-effective platform that can quickly scale into a meaningful growth vehicle. We expect paying customers to increase significantly over the next twelve months."

ChinaNet will customize the pricing for Liansuo.com based on the specific needs of each prospective client. Based on a projected fee ranging between $3,000 and $5,000 per month for the integrated full service platform, the Company anticipates generating gross margin of 75% to 80%.

About ChinaNet Online Holdings, Inc.

The Company, a parent company of ChinaNet Online Media Group Ltd., incorporated in the BVI ("ChinaNet"), is a leading full-service B2B media development, and internet technology company providing online advertising, marketing and brand management solutions for small and medium-sized enterprises (SMEs) in China. The Company, through certain contractual arrangements with operating companies in the PRC, provides Internet advertising and other services for Chinese SMEs via its portal website 28.com, TV commercials and program production via China-Net TV, and in-house LCD advertising on banking kiosks targeting Chinese banking patrons. Website: http://www.chinanet-online.com.

Safe Harbor

This release contains certain "forward-looking statements" relating to the business of ChinaNet Online Holdings, Inc., which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including business uncertainties relating to government regulation of our industry, market demand, reliance on key personnel, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based on ChinaNet's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting ChinaNet will be those anticipated by ChinaNet. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements. ChinaNet undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

CONTACT: HC International, Inc.

         Ted Haberfield

         Tel:  +1-760-755-2716

         Email:  thaberfield@hcinternational.net

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