Kingsway Financial Services Inc.

Kingsway Financial Services Inc.

October 22, 2015 13:36 ET

Conflicted Board at Kobex Capital Proves Only Kingsway Financial's Independent Nominees Can Create Long-Term Value

- The current board and management have earned $2.4 million in fees while destroying $7.8 million in shareholder value.

- Current Chairman Paul van Eeden has set up a 'friends and associates' board that has depleted the treasury, presided over runaway costs and has no plan for value creation.

- Kingsway's experienced, highly-qualified nominees will bring a plan for positive change and address the concerns of shareholders.

- Kingsway reminds shareholders of their $0.65 per share 18% premium tender offer.

TORONTO, ONTARIO--(Marketwired - Oct. 22, 2015) -

In a new letter to shareholders, Kingsway Financial Services Inc. ("Kingsway") is illuminating a friends and associates 'web of conflict' at Kobex Capital Corp. ("Kobex") and providing more information about Kingsway's detailed plan to create value for all shareholders.

Shareholders with questions about Kingsway's premium tender offer, or who require assistance tendering their shares or voting their BLUE proxy for Kingsway's nominees are encouraged to call Kingsway's proxy solicitation agent and depositary Kingsdale Shareholder Services at 1-855-683-3113 (North American Toll Free Number) or 1-416-867-2272 (collect outside North America) or email at contactus@kingsdaleshareholder.com.

The letter to shareholders and two images are available at this address: http://bit.ly/1KqXgPw

ABOUT KINGSWAY FINANCIAL SERVICES INC.

Kingsway is a holding company functioning as a merchant bank with a focus on long-term value-creation. Kingsway owns or controls stakes in several insurance industry assets and utilizes its subsidiaries, 1347 Advisors LLC and 1347 Capital LLC, to pursue opportunities acting as an advisor, an investor and a financier. The common shares of Kingsway are listed on the Toronto Stock Exchange and the New York Stock Exchange under the trading symbol "KFS".

KINGSWAY'S ADVISORS

Kingsway has engaged Norton Rose Fulbright Canada LLP as its legal advisor and Kingsdale Shareholder Services as its strategic advisor and proxy solicitor.

Certain statements contained in this press release, as well as any documents incorporated herein by reference and the accompanying letter dated October 22, 2015 to shareholders of Kobex by Kingsway, constitute forward-looking statements. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Kingsway, Kobex, and Kobex's current or future board or management, are intended to identify forward-looking statements. Such statements reflect Kingsway's current views and intentions with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause Kobex's actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include, but are not limited to, economic, business and regulatory factors. Any such forward-looking statements are expressly qualified in their entirety by this cautionary statement. Moreover, Kingsways does not assume responsibility for the accuracy or completeness of such forward-looking statements. The forward-looking statements included in this press release are made as of the date of this press release and Kingsway undertakes no obligation to publicly update or revise forward-looking statements, other than as required by applicable law.

Kobex's principal business office is Suite 1703, Three Bentall Centre, 595 Burrard Street, PO Box 49131, Vancouver, British Columbia V7X 1J1. A copy of this press release may be obtained on Kobex's SEDAR profile at www.sedar.com.

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