Stull, Stull & Brody Announces Class Action against China Life Insurance Company Limited

Business Wire, May 3, 2004

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--May 3, 2004

Notice is hereby given that a class action lawsuit was filed on May 3, 2004, in the United States District Court for the Southern District of New York, on behalf of purchasers of publicly traded securities of China Life Insurance Company Limited ("China Life") (NYSE:LFC) between December 22, 2003 and April 27, 2004, inclusive (the "Class Period") against China Life and certain of its officers and directors.

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between December 22, 2003 and April 27, 2004, thereby artificially inflating the price of China Life securities.

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 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 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 class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions.

If you acquired China Life securities between December 22, 2003 and April 27, 2004, you may, no later than May 17, 2004, request the Court appoint you as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Aaron Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at SSBNY@aol.com, or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.