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Xinyuan Real Estate Reports No Earthquake Damage to Development Projects in Sichuan Province, China

2008-05-14 00:42 1787

BEIJING, May 14 /Xinhua-PRNewswire/ -- Xinyuan Real Estate Co., Ltd. (“Xinyuan” or “the Company”) (NYSE: XIN), a fast-growing residential real estate developer with a focus on strategically selected Tier II cities in China, today announced that there was no damage at the site of its two development projects in Chengdu, Sichuan province as a result of the magnitude 7.8 earthquake which occurred on May 12, 2008.

Xinyuan’s two development projects consist of Chengdu Xinyuan Splendid Phase I, currently under construction, and Chengdu Xinyuan Splendid Phase II, currently under planning. The projects are located in the Jinjiang District in Chengdu, approximately 105 kilometers from the earthquake’s epicenter in Wenchuan, Sichuan province.

The Chengdu Xinyuan Splendid Phase I project was designed with anti-seismic steel reinforced concrete walls built to withstand earthquakes of up to magnitude 7.0, and is being further reinforced during construction to withstand earthquakes of up to magnitude 8.0. This design structure, which will also be used in the Chengdu Xinyuan Splendid Phase II project, is widely used in high-rise building construction in China. There was no known reported damage to other buildings in Chengdu which use this construction method.

“We are deeply saddened by the tragic events that transpired in Sichuan,” said Mr. Yong Zhang, Xinyuan’s chairman and chief executive officer. “While none of our projects were affected by the earthquake near Chengdu, our thoughts are with all of the families who have been affected by this natural disaster.”

About Xinyuan Real Estate Co., Ltd.

Xinyuan Real Estate Co., Ltd. (“Xinyuan”) (NYSE: XIN) is a fast-growing developer of large scale, quality residential real estate projects aimed at providing middle-income consumers with a comfortable and convenient community life. Xinyuan focuses on China’s Tier II cities, characterized as larger, more developed urban areas with above average GDP and population growth rates. Ranked #1 among all property developers in Zhengzhou in terms of contracted sales of residential units for the years 2004, 2005 and 2006, Xinyuan has expanded its network to cover a total population of over 34.5 million people in 6 strategically selected Tier II cities, including Chengdu, Hefei, Jinan, Kunshan, Suzhou and Zhengzhou. Xinyuan has completed 14 projects with a total gross floor area (“GFA”) of over 1.0 million square meters within the past 10 years and as of December 31, 2007, Xinyuan had 8 projects under construction with a total GFA of 1.1 million square meters and 6 additional projects under planning with total GFA of 1.4 million square meters. With a focus on high asset turnover, efficient working capital management and strict cost control, Xinyuan is dedicated to bringing high quality, affordable homes to China’s middle-income buyers. For more information, please visit http://www.xyre.com .

Safe Harbor Statement

This announcement may contain 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. Statements that are not historical facts, including statements concerning Xinyuan’s beliefs, forecasts, estimates and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties related to, for instance, the risk that we do not have insurance to cover potential losses, claims or damages with respect to our properties before their delivery to customers. In addition, there are certain types of losses, such as losses due to earthquakes, which are currently uninsurable in China. While we believe that our practice is in line with the general practice in the PRC property development industry, there may be instances when we will have to internalize losses, damages and liabilities because of the lack of insurance coverage, which may in turn adversely affect our financial condition and results of operations; the risk that we may be unable to complete our property developments on time or at all due to natural catastrophes or adverse weather conditions. Information regarding these risks and uncertainties is included in our public filings with the Securities and Exchange Commission, including our registration statement on Form F-1, as amended. All information provided in this press release is as of May 13, 2008, and Xinyuan undertakes no duty to update such information, except as required under the applicable law.

Source: Xinyuan Real Estate Co., Ltd.
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