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E-House to Issue New Shares to Management and Use Proceeds for Share Repurchase



     E-House to Issue New Shares to Management and Use Proceeds for Share
                                  Repurchase

CEO and Management to Become Largest Shareholders

PR Newswire

SHANGHAI, Dec. 10, 2012

SHANGHAI, Dec. 10, 2012 /PRNewswire-FirstCall/ -- E-House (China) Holdings
Limited ("E-House" or the "Company") (NYSE: EJ), a leading real estate
services company in China, today announced that it has received board
authorization and approval to issue and sell ordinary shares to certain
management personnel and use the expected proceeds from the share issuance to
repurchase the Company's American depositary shares ("ADSs") on the open
market.

The Company has received a letter of intent from Mr. Xin Zhou, co-chairman of
the Company's board of directors and chief executive officer, on behalf of
management to purchase up to an aggregate of 17,790,125 ordinary shares of the
Company, which represent approximately 15% of the Company's current total
outstanding share capital. The board of directors and the audit committee have
authorized the Company to issue and sell up to an aggregate of 17,790,125
ordinary shares of the Company to Mr. Zhou and certain other management
personnel of the Company for an aggregate purchase price of up to $62,621,240
at $3.52 per share, representing a 15% premium over $3.06, the closing price
of the Company's ADSs on the New York Stock Exchange on December 7, 2012. Upon
completion of the proposed share issuance, the Company's management team will
become the Company's largest shareholder as a group, with a combined stake of
approximately 30%. The management team has also indicated their willingness to
undertake not to transfer or otherwise dispose of, directly or indirectly, any
of the shares acquired in the proposed share issuance until 12 months
following the consummation of the share issuance. Completion of the
transaction is subject to the execution of definitive agreements between the
Company and management as well as satisfaction of the closing conditions
contained therein.

In addition, E-House has also been authorized by the board to use up to all of
the expected proceeds from the share issuance to management to repurchase the
Company's ADSs on the open market in compliance with applicable law, including
Rule 10b-5 under the Securities Exchange Act of 1934, as amended. The timing
and extent of any purchases will depend upon market conditions, the trading
price of ADSs and other factors, and subject to the restrictions relating to
volume, price and timing under applicable law. E-House expects to implement
the share repurchases in a manner consistent with market conditions and the
interests of its shareholders. 

Mr. Zhou commented, "Our plan to significantly increase the management team's
stake in E-House by investing personal funds reflects our confidence in the
Company's business strategies and prospects, and our long-term commitment to
the Company. Our investment in the Company's stock, combined with the board's
decision to implement a share repurchase plan with the proceeds from the
issuance of the new shares, reflects our belief that the Company's shares are
presently undervalued. This repurchase plan further demonstrates our
commitment to enhancing shareholder value."

Safe Harbor: Forward-Looking Statements

This announcement contains forward-looking statements. These statements are
made under the "safe harbor" provisions of Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "may," "intend," "confident," "is
currently reviewing," "it is possible," "subject to" and similar statements.
Among other things, the quotations from management in this press release, as
well as E-House's strategic and operational plans, contain forward-looking
statements. E-House may also make written or oral forward-looking statements
in its reports filed or furnished with the U.S. Securities and Exchange
Commission, including Forms 20-F and 6-K, in its annual report to
shareholders, in press releases and other written materials and in oral
statements made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements about E-House's
beliefs and expectations, are forward-looking statements and are subject to
change. Forward-looking statements involve inherent risks and uncertainties. A
number of important factors could cause actual results to differ materially
from those contained, either expressly or impliedly, in any of the
forward-looking statements in this press release. Potential risks and
uncertainties include, but are not limited to, a severe or prolonged downturn
in the global economy, E-House's susceptibility to fluctuations in the real
estate market of China, government measures aimed at China's real estate
industry, failure of the real estate services industry in China to develop or
mature as quickly as expected, diminution of the value of E-House's brand or
image, E-House's inability to successfully execute its strategy of expanding
into new geographical markets in China, E-House's failure to manage its growth
effectively and efficiently, E-House's failure to successfully execute the
business plans for its strategic alliances and other new business initiatives,
E-House's loss of its competitive advantage if it fails to maintain and
improve its proprietary CRIC system or to prevent disruptions or failure in
the system's performance, E-House's failure to compete successfully,
fluctuations in E-House's results of operations and cash flows, E-House's
reliance on a concentrated number of real estate developers, natural disasters
or outbreaks of health epidemics and other risks outlined in E-House's filings
with the U.S. Securities and Exchange Commission. All information provided in
this press release is current as of the date of this press release, and
E-House does not undertake any obligation to update any such information,
except as required under applicable law.

About E-House

E-House (China) Holdings Limited ("E-House") (NYSE: EJ) is China's leading
real estate services company with a nationwide network covering more than 230
cities. E-House offers a wide range of services to the real estate industry,
including online advertising, primary sales agency, secondary brokerage,
information and consulting, offline advertising and promotion and real estate
investment management services. E-House has received numerous awards for its
innovative and high-quality services, including "China's Best Company" from
the National Association of Real Estate Brokerage and Appraisal Companies and
"China Enterprises with the Best Potential" from Forbes. For more information
about E-House, please visit http://www.ehousechina.com.

For investor and media inquiries please contact:

In China

Michelle Yuan
Director of Investor Relations
E-House (China) Holdings Limited
Phone: +86 (21) 6133-0754
E-mail: michelleyuan@ehousechina.com

Derek Mitchell
Ogilvy Financial, Beijing
Phone: +86 (10) 8520-3073
E-mail: ej@ogilvy.com

In the U.S.

Jessica Barist Cohen
Ogilvy Financial, New York
Phone: +1 (646) 460-9989
E-mail: ej@ogilvy.com 

SOURCE E-House (China) Holdings Limited

Website: http://www.ehousechina.com
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