Xinhua Finance CEO Sends Letter to Shareholders

Xinhua Finance CEO Sends Letter to Shareholders

July 10, 2007

    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:   [phone] or [phone]
     Email: [e-mail]

    United States
     Eric Andrus
     Tel:   [phone]
     Email: [e-mail]