ChinaNet Online Holdings Provides Taiwan Expansion Update; Participates in 2011 Taipei International Chain and Franchise Autumn Exhibition

BEIJING, Aug. 29, 2011 (GLOBE NEWSWIRE) -- ChinaNet Online Holdings, Inc. ("ChinaNet" or the "Company"), (Nasdaq:CNET), a leading B2B integrated internet service provider for small to medium-sized enterprises (SMEs) to expand their sales networks in the People's Republic of China, today announced its expansion efforts to attract Taiwan-based global franchises in conjunction with its annual participation in the 2011 Taipei International Chain and Franchise Autumn Exhibition held August 26-29 at the World Trade Exhibition Centre in Taipei, Taiwan.

Hosted by the Taiwan Chain and Franchise Association, the Exhibition is the largest franchise business exhibition in Asia with over 200 hundred brands and 48,000 visitors in attendance this year. Attendance at the Exhibition is part of the overall strategy to attract foreign franchises to China through ChinaNet's franchise gateway and marketing platforms, 28.com and Liansuo.com

To date, ChinaNet has added 30 Taiwanese companies to its listings on Liansuo.com, which serves leading domestic and multi-national franchisors and helps to connect entrepreneurs and franchise owners for larger, more established franchise opportunities. Companies include Natural Beauty, one of the largest beauty SPA service companies in China with 2500 stores across the globe (http://yp.liansuo.com/2777/index.html?bannerID=2619), and iCorner, a rising developer of bubble tea cafés in China with more than 100 stores across northern China (http://yp.liansuo.com/2724/index.html.

Beginning in July, the Company has been launching additional tailored services targeting Taiwanese franchise business owners who are considering expanding into China, including licensing application and market testing services. Services include hands-on assistance to Taiwanese franchises seeking national-wide franchise permits in China and providing key statistical information on addressable markets to support marketing and branding efforts.

In an effort to enhance the Company's international expansion and marketing efforts, ChinaNet has been accepted as a member of the International Franchise Association (IFA), the world's oldest and largest organization representing franchising. The IFA has a membership of more than 1,300 franchise systems, 10,000-plus franchisees and more than 500 firms that supply goods and services to the industry.

Mr. Handong Cheng, Chairman and CEO of the Company said, "In 2010, ChinaNet was the first in our industry to establish a presence in Taiwan. We are pleased that efforts to build upon our new relationships have begun to bear fruit and contribute to our revenues as we continue to promote the expansion of Taiwanese franchise enterprises in China. Our growing international presence will be additionally strengthened with our membership in the IFA, which we believe will offer new opportunities for growth."

For further information on ChinaNet's attendance at the Exhibition, including photos of the Company's participation, please visit http://zhanhui.liansuo.com/taiwan2011/index.html

About ChinaNet Online Holdings, Inc.

The Company, a parent company of ChinaNet Online Media Group Ltd., incorporated in the BVI ("ChinaNet"), a leading B2B fully integrated internet service provider for small and medium companies (SMEs) to expand their sales channel/networks in China. Founded in 2003 and based in Beijing, PRC, the Company's services include its 28.com portal to connect SME franchisors with new franchisees, Internet advertising and marketing with other value-added communication channels, brand management & sales channel solutions, and cloud-based management tools (introduced in 2011). 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: MZ-HCI

         Ted Haberfield, President

         Direct: +1-760-755-2716

         Email: thaberfield@hcinternational.net

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