Xinhua Finance Media Strengthens TV Programming and Production Consulting Capabilities with Acquisition

Xinhua Finance Media Strengthens TV Programming and Production Consulting Capabilities with Acquisition

BEIJING, Aug. 24 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance Media ("XFMedia"; Nasdaq: XFML), China's leading diversified financial and entertainment media company, announced today that it has acquired a 70% interest in Small World Television ("Small World"). The acquisition strengthens XFMedia's TV programming and production consulting capabilities by adding Small World's international perspective and experience in television production and key relationships with international broadcasters such as the U.S. network broadcaster NBC.

Founded in 2004, Small World is a TV programming and production consulting company operated by veterans of the US entertainment industry. Focusing on the China market, Small World has been a close partner of XFMedia, helping XFMedia to introduce an international vision to the production of TV programs and localizing them for a China audience.

"We are delighted that Small World has now become a part of the XFMedia family," said XFMedia CEO, Ms. Fredy Bush. "Small World's knowledge of the entertainment industry, strengths in TV production, in combination with our understanding of the audiences in China and our own production resources within the XFMedia platform, will enable us to develop and produce more and better programs with broad appeal to our target demographic. We expect that this acquisition will generate new revenue streams through program syndication and advertising sales."

The founder and President of Small World, Mr. Jonathan Goodman, said, "I look forward to the effective integration of Small World with XFMedia's rich media resources. Our existing TV and movie projects will benefit from XFMedia's strong production capabilities such as animation, programming, post- production, as well as its local advertising sales team."

The key management executives of Small World, including founder and President Mr. Jonathan Goodman, Executive Vice President Mr. Joseph Lynch and TV Production Vice President Mr. Michael Zombro, have signed three-year employment contracts with the Company. Mr. Goodman possesses over 25 years of experience in the entertainment industry and has successfully negotiated and secured major recording artist contracts and publishing deals, as well as multi-million dollar sponsorship packages with many international firms. Mr. Lynch spent six years producing for NBC prior to coming to Small World in 2004 to spearhead its production. He has produced segments on hit shows like Friends, The Apprentice, The West Wing, ER, and The Tonight Show with Jay Leno. Mr. Zombro has bachelor and master degrees in production and is a talented camera and lighting person. He has strong knowledge and experience in all areas of film and video, from pre- to post-production, and are now responsible for the daily creative execution of Small World's shows.

The transaction was closed on August 23, 2007. XFMedia has made a cash payment of USD 5 million and will issue 546,248 Class A common shares within five days from closing date (equivalent to 273,124 American Depository Shares).

XFMedia produces a diverse array of quality programming, animation shows and television drama series, as well as offers special effects service and TV channel packaging. It also provides content consulting services to various TV programs, deriving revenue through selling advertising for the programs. The Company produced over 100 TV programs and completed 60 animation episodes last year.

About Xinhua Finance Media Limited

Xinhua Finance Media ("XFMedia"; Nasdaq: XFML) is China's leading diversified financial and entertainment media company targeting high net worth individuals nationwide. The company reaches its target audience via TV, radio, newspapers, magazines and other distribution channels. Through its five synergistic business groups, Advertising, Broadcast, Print, Production and Research, XFMedia offers a total solution empowering clients at every stage of the media process and keeping people connected and entertained.

Headquartered in Beijing, the company has offices and affiliates in major cities of China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For more information, please visit http://www.xinhuafinancemedia.com/ .

Xinhua Finance Media is a subsidiary of Xinhua Finance Limited ("XFL"; TSE Mothers: 9399), China's premier financial information and media service provider. XFL owns 36.8% of the equity and 85.4% of the voting rights of XFMedia through its holding of class B common shares, which have ten votes per share. The investing public, the company's China partners, executives and staff own class A common shares in the company with one vote per share. The dual-class common share structure was created to accommodate the regulatory landscape of China's media sector.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," ''confident'' and similar statements. Among other things, expectations about the Chinese advertising and television markets and quotations from management in this announcement contain forward-looking statements. Statements that are not historical facts, including statements about XFMedia's beliefs and expectations, are forward- looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statements. Potential risks and uncertainties are risks outlined in XFMedia's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1. All information provided in this press release is as of the date hereof, and XFMedia undertakes no duty to update such information, except as required under applicable law.

For more information:

China
Xinhua Finance Media
Joy Tsang,
Tel: +86-21-6113-5999, +86-136-2179-1577
Email: joy.tsang@xinhuafinancemedia.com

Source: Xinhua Finance Media

CONTACT: Ms. Joy Tsang of XFMedia, +86-21-6113-5999, or
+86-136-2179-1577, or joy.tsang@xinhuafinancemedia.com

web Site:

http://www.xinhuafinancemedia.com/

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