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China Housing and Land Development, Inc. Acquires Xi'an New Land Development Co., Ltd

Acquisition Will Provide the Company with the Necessary Development and Sale

Right to a Significant Portion of the Available Residential and Commercial

Land in the Highly Coveted Baqiao Hi Tec Industrial Zone

XI'AN, China, March 12 /Xinhua-PRNewswire/ -- China Housing and Land

Development, Inc. ("China Housing") (OTC Bulletin Board: CHLN), a leading

developer of residential and commercial properties in the city of Xi'an

announced today that on March 9, 2007 it has signed a definitive agreement to

acquire Xi'an New Land Development Co. Ltd. ("New Land").

Pursuant to the definitive agreement, China Housing purchased 100 percent

equity ownership of New Land for 270 million RMB or approximately $34 million

USD. The total purchase price includes the initial cash payments of 62 million

RMB, or approximately US$8 million, and the issuance of 10% promissory note of

the balance payable before or on January 30, 2009. The acquisition is

expected to close 30 days after the completion of the GAAP audit.

As part of the agreement with the Baqiao District Government and prior to

any sales, China Housing will be responsible for the installation and

maintenance of all basic infrastructure, including water, electricity, gas

supply, telecommunication and sewer systems. New Land has already spent

approximately $8.8 million to date on such initiatives and many of these

infrastructure projects are well under way. Once these improvements are

completed management expects to begin selling parcels of land by the end of

calendar 2007.

The Baqiao Hi-Tec Industrial Zone, which encompasses about 8 miles in

total size, is located approximately 6 miles from the center of Xi'an, linked

by 3 highways and is expected to be the first stop along a planned cross-town

subway which will start from the center of the city out to this new area. This

project has the support of various Chinese central government agencies,

including the National Development & Reform Commission, the Ministry of Land &

Resources, the Ministry of Agriculture, the Ministry of Science and

Technology, and the Ministry of Commerce. According to the Xi'an 10 year

development plan, this region has been earmarked to be the main high-end

residential area of Xi'an city and the Xi'an Central Government has an

initiative to move nearly 600,000 residents from the center of the city to

this region during the next ten years. As a result of this acquisition, China

Housing will take the first steps in the primary land market, and also have

the right to develop and sell 487 acres of property which has been targeted

for new residential developments.

"We are excited to sign a definitive agreement for this dynamic

acquisition opportunity, commented Mr. Pingji Lu, CEO & Chairman of China

Housing. "The piece of land we are acquiring constitutes a significant portion

of the available residential property in this high growth industrial region.

The price of raw land in Xi'an has increased steadily over the last five years

and based on continued strong economic growth, government initiatives and the

relative affordability of Xi'an in contrast to other major metropolitan

Chinese cities, we expect this favorable pricing trend to continue. We believe

that this acquisition, along with our other new developments, will be a major

contributor to our continued strong financial performance over the foreseeable

future."

The Company plans to file its 2006 10K and fourth quarter earnings press

release by March 31, 2007.

About China Housing and Land Development, Inc.

Based in Xi'an, the capital city of the Shaanxi province in China, China

Housing and Land Development, Inc. is the largest private developer of

residential and commercial properties. China Housing has been an independent

business since 1992 and became a US publicly listed company in 2006.

Cautionary Statement Regarding Forward Looking Information

This Press Release may contain forward-looking information about China

Housing and Land Development, which are covered under the safe harbor for

forward-looking statements provided by the Private Securities Litigation

Reform Act of 1995. Forward- looking statements are statements that are not

historical facts. These statements can be identified by the use of forward-

looking terminology such as "believe," "expect," "may," "will," "should,"

"project," "plan," "seek," "intend," or "anticipate" or the negative thereof

or comparable terminology, and include discussions of strategy, and statements

about industry trends and China Housing and Land Development's future

performance, operations and products. This and other "Risk Factors" contained

in China Housing and Land Development, Inc.'s public filings with the SEC.

Contact:

Company:

Jing Lu (86) 29 82582632

lujing@chinahousinginc.com.cn

Investors:

Matt Hayden

Hayden Communications

(858) 704-5065 or matt@haydenir.com

Source: China Housing and Land Development, Inc.
Related Stocks:
NASDAQ:CHLN
Keywords: Real Estate
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