Xinhua Finance Media Expands Outdoor Advertising Capabilities With New Acquisition

Xinhua Finance Media Expands Outdoor Advertising Capabilities With New Acquisition

July 10, 2007

    SHANGHAI, China, July 3 /Xinhua-PRNewswire/ -- Xinhua
Finance Media ("XFMedia"; Nasdaq: XFML) yesterday
announced it had acquired a 100% interest in Convey
Advertising Company ("Convey"), a major outdoor
advertising operator in Hong Kong and across southern
China.  The acquisition expands XFMedia's outdoor
advertising network to seven additional cities and includes
significant high traffic and key transit routes linking
mainland China with Hong Kong and Macau.

    (Logo: http://www.xprn.com/xprn/sa/200704262018.JPG )

    Founded in 1986 in Hong Kong, Convey has advertising
rights to over 3,000 outdoor media assets, 2,000 of which
are exclusive.  These outdoor media assets include
traditional outdoor billboards, LED and LCD boards and
others in Dongguan, Shenzhen, Guangzhou and Foshan in
Guangdong province, Hong Kong and Macau in the south and
Tianjin in the north.  The company's main strengths are in
the wealthy southern China cities, particularly along the
border-port gateways through which millions of mainland
Chinese pass each year on their way to the prime shopping
and gambling destinations of Hong Kong and Macau.

    In 2006, Guangdong province ranked number one in China
in terms of GDP, which amounted to one-eighth of the entire
country. Its USD 336 billion of GDP was higher than the
combined GDP of Hong Kong (USD 187.1 billion) and Singapore
(USD 138.6 billion).  According to The Tourism Boards of
Hong Kong and Macau, there are 12.5 million and 10 million
travelers from Mainland China to Hong Kong and Macau
respectively every year, and 83% of them go through
gateways at border ports of Guangdong province. 
 
    Convey has a 20-year history and has secured the most
strategic billboard space in Hong Kong and along the
gateways through to mainland China," said XFMedia's
CEO, Ms Fredy Bush.  "I am delighted we have the
opportunity to work with Convey Chairman Mr Mak as he is
one of the most experienced professionals in the outdoor
industry in Asia."

    "The acquisition of Convey will significantly
strengthen XFMedia's advertising platform and enhances our
ability to reach China's key high net-worth demographic. 
The Hong Kong and southern China markets are very
important, and this acquisition provides us with very high
profile access to these areas.  We believe the outdoor
advertising market has strong potential and good synergies
with other elements of the XFMedia platform," Ms Bush
added. 

    Convey is a pioneer in developing innovative and
high-technology outdoor advertising solutions, offering the
High Power Visual Projection System, which allows large
scale visual displays on architectural surfaces, and the
Patented Mobile Inflatable Billboard, which creates
impressive product and branding effects.  To see or
download some billboard samples, please visit
http://www.xinhuafinancemedia.com/uploadedfiles/advertising/billboards/070202/
.  

    Convey's Chairman Mr S.T. Mak said he was confident
that Convey would be able to expand its advertising asset
portfolio in key mainland China markets as a result of the
new arrangement with XFMedia.  "The supply of outdoor
advertising space in China is limited, and I believe the
price per billboard in China will continue to go up.  We
expect that the growth potential is even higher with the
technological support we can provide to better utilize the
advertising space," Mr Mak said.

    Mr Mak and other key Convey management executives have
signed five-year employment contracts with the company. 
Convey has a total of 65 employees.

    The transaction was closed on July 2nd, 2007.  Under
the agreement, XFMedia has acquired control of Convey
through the purchase of 100% of the shares of its holding
company Good Speed Holdings Limited.  XFMedia has made an
initial cash payment of USD 33 million, and may make
further payments in cash and Class A common shares of
XFMedia depending on Convey's financial performance in 2007
and 2008.  The transaction is expected to be accretive to
XFMedia's earnings per share in 2007.

    XFMedia's Advertising Group creates and places
advertising with integrated campaigns that reach
television, radio, newspapers, magazines, and outdoor media
in China.  In April, the Advertising Group expanded its
outdoor media assets in the Beijing area, with an exclusive
agreement to sell advertising onto 2,000 new public service
billboards in strategic locations throughout the city. 

    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
include but are not limited to, the risk that the China
advertising market including for outdoor display may not
grow as expected and other 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 the
date of this release, and XFMedia undertakes no duty to
update such information, except as required under
applicable law.
    





    For more information, please contact:

     Ms. Joy Tsang
     Tel:   [phone]
     Email: [e-mail]