(TSX:KFS, NYSE:KFS) Kingsway Financial Services Inc. (”Kingsway”) announces that the Pennsylvania Insurance Department (the “Department”) has completed its review of a proposed RBC plan (the “Plan”) filed by Lincoln General Insurance Company (”Lincoln General”). The Department has determined that Lincoln General’s Plan is satisfactory and may be implemented immediately.

As previously announced, Lincoln General submitted its Plan to the Department on May 7, 2009. Lincoln General is a subsidiary of Kingsway.

About the Company

Kingsway Financial Services Inc. is one of the largest non-standard and commercial automobile insurers in North America based on A.M. Best data that we have compiled. Kingsway’s primary business is the insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers and trucking insurance. The Company currently operates through eleven wholly-owned insurance subsidiaries in Canada and the U.S. Canadian subsidiaries include Kingsway General Insurance Company and Jevco Insurance Company. U.S. subsidiaries include Universal Casualty Company, American Service Insurance Company, Southern United Fire Insurance Company, Lincoln General Insurance Company, U.S. Security Insurance Company, American Country Insurance Company, Zephyr Insurance Company, Mendota Insurance Company and Mendakota Insurance Company. The Company also operates reinsurance subsidiaries in Barbados and Bermuda. The common shares of Kingsway Financial Services Inc. are listed on the Toronto Stock Exchange and the New York Stock Exchange, under the trading symbol “KFS”.