omniture

Xinhua Finance CEO Sends Letter to Shareholders

Xinhua Finance Limited; Xinhua Finance Media Limited
2007-07-09 21:40 810


SHANGHAI, July 9 /Xinhua-PRNewswire/ -- Chief Executive Officer of Xinhua Finance Limited (TSE Mothers: 9399) and Xinhua Finance Media Limited (Nasdaq: XFML), Fredy Bush, today issued the following statement to shareholders of both companies:

Dear fellow shareholders,

Xinhua Finance Media Limited (“XFMedia”) and its parent, Xinhua Finance, were again the subject of a media story that requires me to clarify certain inaccuracies and misperceptions. I will not let these media reports distract us from our very intense focus on our business. And you should know that the business remains strong as is evidenced by XFMedia's announcement this morning revising upwards its revenue guidance for second quarter 2007 from $23 million to an anticipated range of $27-29 million. In addition to the information below, you can read a letter which went out to my staff on July 5, 2007 which is available on our website at http://www.xinhuafinance.com/employee-letter-070705 .

-- Over the years the media has criticized Xinhua Finance as being too

close to the Xinhua News Agency and the government of China; now they

are criticizing us for not being close enough. The fact is, we have a

20 plus 10 year exclusive agreement signed in 2000 with the China

Economic Information Service of the Xinhua News Agency and that has not

changed. This has been publicly disclosed on numerous occasions.

-- Xinhua News Agency has always had its own financial services division,

and it is called the China Economic Information Service of the Xinhua

News Agency. Their recent announcement concerned an upgrade of those

services. And, contrary to suggestions in the Wall Street Journal,

they are not involved in indices, ratings and so forth. Again, this is

publicly disclosed.

-- The media also have attempted to dispute my role in the founding of

Xinhua Finance and how this company achieved the success it has

experienced to date. The fact is I was both a founder and early

investor. The information regarding the establishment of the company

is recorded clearly in the company's public registration documents.

The track record of the company, the valuable business relationships we

have established, and the financial performance we have achieved speak

for themselves, and we are very proud of these important

accomplishments.

-- I want to point out one of the misperceptions in the article that is

very important to me, even if it may seem innocuous: I have never

attributed the success of Xinhua Finance solely to my own personal

persistence and determination, but instead to that of my entire team.

-- The article also attempted to cast a shadow on me personally. Even

insignificant facts like the color of my car, the size of my home in

Hawaii, and what my staff calls me were inaccurate. In English, my

staff calls me Fredy, and in Chinese, because of my hair, some

jokingly call me “mian mian”, which means instant noodles. But I'm

not going to dignify other inaccuracies about my personal life,

supposed nicknames and long-ago family tragedies with further comment.

As a shareholder of Xinhua Finance and XFMedia myself, I want the staff to spend its time on building the business and shareholder value, and that is what I am focused on doing.

I welcome any suggestions you would like us to consider as we continue to move our company forward. I truly appreciate your ongoing support.

Best regards,

Fredy Bush

Chief Executive Officer

Xinhua Finance Group

About Xinhua Finance Limited

Xinhua Finance Limited is China's premier financial information and media service provider and is listed on the Mothers Board of the Tokyo Stock Exchange (symbol: 9399) (OTC ADRs: XHFNY). Bridging China's financial markets and the world, Xinhua Finance's proprietary content platform, comprising Indices, Ratings, Financial News, and Investor Relations, serves financial institutions, corporations and re-distributors worldwide. Through its subsidiary Xinhua Finance Media Limited (Nasdaq: XFML), Xinhua Finance leverages its content across multiple distribution channels in China including television, radio, newspaper, magazine and outdoor media. Founded in November 1999, Xinhua Finance is headquartered in Shanghai, with offices and news bureaus spanning 11 countries worldwide. For more information, please visit http://www.xinhuafinance.com .

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.

Xinhua Finance Media Limited is a subsidiary of Xinhua Finance Limited. 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 .

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” and similar statements. Among other things, statements made about XFMedia's strategic and operational plans, projected revenues, contain forward-looking statements. XFMedia may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission 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 XFMedia's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract and retain customers; competition in the Chinese advertising market; changes in our revenues and certain cost or expense items as a percentage of our revenues; the outcome of ongoing, or any future, litigation or arbitration; risks associated with recent adverse press articles, the expected growth of the Chinese advertising and media market; and Chinese governmental policies relating to advertising and media. Further information regarding these and other risks is included in our registration statement on Form F-1, as amended, filed with the Securities and Exchange Commission. XFMedia does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

China

Joy Tsang

Tel: +86-136-2179-1577 or +852-9486-4364

Email: joy.tsang@xinhuafinance.com

United States

Eric Andrus

Tel: +1-646-805-2010

Email: EAndrus@rlmnet.com

Source: Xinhua Finance Limited; Xinhua Finance Media Limited
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