CRM Holdings, Ltd. To Transfer To Nasdaq Capital Market

CRM Holdings, Ltd. (“CRM” or “the Company”) (Nasdaq: CRMH) today announced that The Nasdaq Stock Market, LLC has approved CRM’s application to transfer its stock listing from the NASDAQ Global Select Market to the NASDAQ Capital Market. The transfer will be effective at the opening of the market on Friday, May 21, 2010. The Company’s stock will continue to be traded under the symbol “CRMH” and the transfer will have no impact on the ability of investors to trade the stock. The NASDAQ Capital Market is a continuous trading market that operates in the same manner as The NASDAQ Global Select Market, and it includes the securities of approximately 450 companies. All companies listed on The NASDAQ Capital Market must meet certain financial requirements and adhere to Nasdaq’s corporate governance standards.

In accordance with Nasdaq Marketplace Rules, the Company has been granted an additional 180 days from May 10, 2010, or until November 8, 2010, to demonstrate compliance with the $1.00 bid price requirement of The NASDAQ Capital Market. This additional 180-day grace period allows the Company to defer implementation of a reverse stock split. The Company’s listing transfer is in response to the letter received from the Nasdaq on May 12, 2010, informing the Company that its common shares had failed to comply with the $1.00 minimum bid price required for continued listing on the NASDAQ Global Select Market, and, as a result, the Company’s common shares were subject to delisting. If compliance with the $1.00 bid price requirement is not regained by November 8, 2010, Nasdaq will notify the Company of its determination to delist the Company’s common shares, which decision may be appealed to a Nasdaq Listing Qualifications Panel.

“The transfer to the Capital Market allows our investors to continue to benefit from our shares being listed on the Nasdaq Stock Market without implementation of a reverse stock split. It further allows us to maintain our visibility with the investment community, liquidity and pricing efficiency while we continue pursuing strategic alternatives,” said James J. Scardino, the Company’s Chief Executive Officer.