Lerach Coughlin Stoia & Robbins LLP Files Class Action Suit against China Life Insurance Company Limited

Business Wire, May 11, 2004

Business Editors/Financial Analysts

SAN DIEGO--(BUSINESS WIRE)--May 11, 2004

Lerach Coughlin Stoia & Robbins LLP (http://www.lcsr.com/cases/chinalife/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of China Life Insurance Company Limited ("China Life") (NYSE:LFC) publicly traded securities during the period between December 22, 2003 and February 3, 2004 (the "Class Period").

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from March 16, 2004. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach Coughlin Stoia & Robbins LLP at 800/449-4900 or via e-mail at wsl@lcsr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.lcsr.com/cases/chinalife/. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges China Life and certain of its officers and directors with violations of the Securities Exchange Act of 1934. China Life is a life insurance company in China. The Company sells its products through an extensive distribution network of exclusive agents, direct sales representatives and dedicated and non-dedicated agencies throughout China.

According to the complaint, China Life has existed in its current form since June 2003, when it was formed to cherry-pick healthier policies from its parent company, China Life Insurance Company. Following the Company's road show in New York just prior to the IPO, China Life's IPO was about 25 times oversubscribed and triggered the sort of frenzy that was reminiscent of the Internet bubble. The IPO was priced at $18.68 on December 16, 2003.

The complaint alleges that during the class period, defendants knew, but failed to disclose the following adverse facts: (i) that the Company, under its old name, and/or its predecessor or parent engaged in a massive financial fraud to the tune of $652 million; (ii) that at the time of the IPO, the National Audit Office of China ("NAO") had completed and/or was imminently about to publish its adverse audit findings of the predecessor company which, under a new name, controls the listed company, China Life; (iii) that the predecessor company, under a different name, engaged in criminal acts involving illegal agent services, illegal premium payments, embezzlement and depositing monies in illegal bank accounts; and (iv) that China Life's share price would be tied to the illegal acts already known to the defendants, two-thirds of whom were directors/executive officers and/or senior managers of the predecessor company. As a result of the defendants' false statements, China Life's stock price traded at inflated levels during the Class Period, increasing to as high as $34.75 on December 29, 2003, shortly after the Company sold more than $3 billion worth of its own shares.

On February 4, 2004, China's state audit office said on its Web site that it had found the equivalent of about $652 million worth of irregularities involving China Life's predecessor company and/or parent company. In a statement on the NAO Web site, Li Jinhua, head of the NAO, was quoted as saying that in its national audit last year, the office found irregularities at China Life Insurance Company, including 2.4 billion yuan involving illegal agent services and premium payments, 2.5 billion yuan in embezzled funds and 31.79 million yuan deposited in illegal bank accounts (the equivalent of $652 million).

Plaintiff seeks to recover damages on behalf of all purchasers of China Life publicly traded securities during the Class Period (the "Class"). The plaintiff is represented by Lerach Coughlin Stoia & Robbins LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Lerach Coughlin Stoia & Robbins LLP, a 125-lawyer firm with offices in San Diego, San Francisco, Los Angeles, Washington, D.C., Houston and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. Lerach Coughlin Stoia & Robbins LLP lawyers have been responsible for more than $20 billion in aggregate recoveries. The Lerach Coughlin Stoia & Robbins LLP Web site (http://www.lcsr.com) has more information about the firm.