China Internet Cafe Holdings Group Expands to 48 Internet Cafes in Shenzhen with Announcement of Two Grand Openings

SHENZHEN, China, April 13, 2011 /PRNewswire-Asia-FirstCall/ -- China Internet Cafe Holdings Group, Inc. ("CICC" or the "Company") (OTC Bulletin Board: CICC), one of the largest owners and chain operators of internet cafes in southern China, announced the grand opening of two new internet cafes, bringing the total number of operating locations to 48 in Shenzhen.

On March 26, 2011 the Company opened an internet cafe located at the Zhenyecheng Zonghelou Business Store, Henggang Neighborhood, in the Longgang District of Shenzhen, and on April 2, 2011 an additional cafe opened at 1st Shajingxihuan 3rd Section Road in the Baoan District of Shenzhen. Together, the two cafes have a capacity of 600 computers covering 1,900 square meters with a total capital investment of $1.0 million. Management expects to initially have 60,000 registered users across both locations after the first month in operation, with average revenue per computer of $0.60/hour. The two cafes are expected to generate approximately $1.2 million during the next twelve months.

Each cafe location was carefully selected by the Company to be established in a densely populated area of Shenzhen within easy walking distance for factory workers, college students and local residents. The surrounding footprint of each cafe has over 160,000 residents. There are numerous factories and dormitories nearby, each averaging 1,000 to 2,000 employees. The targeted customer for CICC is a young student or worker who does not have a reliable home internet connection or a lot of disposable income to spend on entertainment. He or she spends three to five hours per week at a CICC internet cafe to watch movies, surf the internet and meet friends and colleagues to play online games.

"With our 48th internet cafe now open, we are rapidly executing on our organic growth plan to build and operate company owned stores in Shenzhen," said Mr. Dishan Guo, Chief Executive Officer of China Internet Cafe. "We continue to experience strong demand as internet and online gaming increases in popularity, with over 185 million registered internet users in China in 2010, growing 38% from 2009. We are capitalizing on our strong brand and enhanced capital position to establish new locations, as well as evaluate acquisitions in other provinces that fit our demographic and geographic targets."

A complete list and map of the Company's cafes can be found at: http://www.chinainternetcafe.com/dragon-surf-stores/locations

About China Internet Cafe Holdings Group, Inc.

Since opening its first internet cafe in 2006 under the name Shenzhen Junlong Culture Communication CO. Ltd., China Internet Cafe Holdings Group, Inc. has expanded quickly to 48 cafes in Shenzhen, Guangdong Province, China. The Company provides high quality, affordable internet services to consumers who purchase reloadable cards. Customers can access a range of online services, including email, web surfing, watching movies, online gaming, voice over IP, and social media in a comfortable, friendly and safe environment. CICC offers a variety of internet connectivity stations with varying speeds, monitor sizes and seating arrangements.

Safe Harbor Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected or anticipated, including risks outlined in the Company's public filings with the Securities and Exchange Commission, including the Company's registration statement on Form F-1, as amended. All information provided in this press release is as of the date hereof. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

SOURCE China Internet Cafe Holdings Group, Inc.

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