Ping An clarifies market rumours on routine tax review

Hong Kong, July 2, 2008 -- With regard to recent market rumours surrounding tax inspection at Ping An Insurance (Group) Company of China, Ltd. ( Ping An or the Group , HKEx: 2318), the Group clarified today that the State Administration of Taxation is conducting a routine tax review at Ping An and its subsidiaries. As the review is still underway, the Group wishes to state that it is not aware of any matter discloseable, and that the rumours prevailing in the market do not consist with facts.

According to the announcement, the State Administration of Taxation is currently carrying out a routine tax audit at Ping An and its subsidiaries in relation to the Group s tax payments for the period from 2004 to 2006. It is understood that in the past three consecutive years, the Administration has conducted similar reviews on consolidated income tax returns at two to three national enterprises on a random basis per annum.

Ping An stated that it is the Group s obligation and responsibility to make tax payments in accordance with the law. The Group would fully cooperate with the State Administration of Taxation on the audit work. Since the review has yet to be completed, the Group is not aware of any information for public disclosure.It added that the market rumours do not conform with the facts.

Besides, the announcement stated that Ping An, pertaining to a 10% drop in the company share price compared with its last close in the A-share market today (2 July), is not aware of any material information that the Group had to disclose but yet to get disclosed as required by the Listing Rules of the Shanghai Stock Exchange, including but not limited to activities such as major asset restructuring, acquisition and share issuance.

With strong fundamentals, clear business strategy and prudent financial approach, Ping An, as stated in its announcement, reiterated the steady growth achieved in all of its businesses.The Group is committed to continuing to deliver steady returns for all shareholders in the long run.