SHANGHAI, China, May 23 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance Media (Nasdaq: XFML) ("XFMedia") today stated that the lawsuit filed against it on 22 May by an individual who bought 100 shares in its IPO is wholly without merit and that the Company intends to defend itself vigorously. The Company added that the allegations in the complaint appear to be premised on factual errors drawn from a recent press article on the Company. XFMedia CEO Fredy Bush issued a statement clarifying the following inaccuracies which have appeared in recent media articles:
-- Mr. Andrew Chang, who has been with Xinhua Finance Limited since
2003, is XFMedia's CFO, and not, as has been wrongly stated, David
Wang.
-- Prior to the IPO XFMedia underwent an intensive due diligence
process, and the prospectus contained all material information as
required by US securities laws.
-- Mr. Shelly Singhal took on the position of CFO for XFMedia in
September on a full time basis. He was not, as has been alleged,
working simultaneously for XFMedia and Bedrock Securities (a broker
dealer which he owns but does not operate).
-- The National Association of Securities Dealers withdrew its
cease-and-desist letter from Bedrock Securities on December 14, 2006,
prior to the IPO.
-- Mr. Jonathan Weil recently resigned from Glass Lewis. He submitted
his first resignation letter on May 2nd stating the following: "I'm
writing to notify you formally that I am resigning my positions at
Glass Lewis as managing director and editor of financial research,
effective May 16th, in order to pursue other opportunities." On
May 18th, one day prior to the publication of a negative article on
XFMedia, Mr. Weil submitted a revised resignation letter which he
circulated to various media outlets making disparaging comments
about the management and directors of XFMedia and its parent, Xinhua
Finance Limited.
Ms Bush added, "The Xinhua Finance business is robust and growing as evidenced by the firms' recent first quarter results and upward reforecast announcement on May 15th. The fundamentals of the businesses are strong and I believe that the recent sell-off of shares does not reflect the performance of the businesses."
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 .
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, quotations from management in this announcement 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 on forms 20-F and 6-K, etc., 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 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 May 23, 2007, and XFMedia undertakes no duty to update such information, except as required under applicable law.
