Xinhua Finance Limited (TSE: 9399) Reports Strong Year-On-Year Growth in 2007

SHANGHAI, China, Feb. 17 /Xinhua-PRNewswire-FirstCall/ -- Xinhua Finance
Limited ("XFL", TSE Mothers: 9399 and OTC: XHFNY), China's premier financial
information and media service provider, today announced consolidated business
results for the fiscal year ended December 31, 2007. Under International
Financial Reporting Standards ("IFRS"), XFL's consolidated revenue increased
to US$257.7 million, up 47% from US$175.0 million a year ago; EBITDA was
US$39.0 million, representing a year-on-year growth of 67% from US$23.3
million; and net income grew 201% to US$56.5 million from US$18.7 million in
2006. Fully diluted earnings-per-share (EPS) reached US$51.68, up from
US$20.14 in 2006.
Proforma EBITDA, adjusted to exclude non-cash ESOP expenses and one-time
items, was US$54.3 million, representing an operating margin of 21% and an
increase of 68% over US$32.4 million in the previous year. XFL provides
proforma results to help investors better understand the Company's underlying
operating and financial trends.
During the year, XFL divested or discontinued certain businesses in order
to align its growth strategy with the opportunities in China and the areas
where the company has a significant competitive edge. Revenue from continuing
operations was US$247.5 million, exceeding the 2007 full year forecast of
continuing operations of US$242.2 million by 2%. Pro Forma EBITDA from
continuing operations was US$57.2 million vs. full year forecast from
continuing operations of US$58.4 million.
XFL CEO Fredy Bush said that the company was pleased to report another
year of strong growth propelled by the achievements across all service lines
and the dynamic market environment in China.
"Our solid financial performance in 2007 demonstrates the continued
success of our China-focused strategy. For fiscal year 2007, over 55% of
revenue and 70% of our employees came from our China businesses. We have
successfully developed significant market leadership in each of our service
lines over the last 8 years since we started this company. We believe we are
well poised for seizing further opportunities for growth as China continues to
evolve. In 2008, we will invest in the business strategically to strengthen
our unrivaled position," said Ms. Bush.
In 2007, XFL continued to successfully leverage its content and
distribution businesses to benefit from the vigorous development of China's
markets. In XFL's content business, the company's China indices were
benchmarked by more funds worldwide, with total assets under management rising
to around US$122 billion at the end of 2007 from US$108 billion at the third
quarter of 2007 and US$54 billion a year ago. The financial news service
signed a contract with the Singapore Stock Exchange to offer customized
Chinese news products. For the IR service line, the corporate announcement
distribution services, Xinhua PR Newswire, increased its distribution volume
by 48% from 2006 and the number of journalists in China on its network grew
from 6,500 to 9,000 at the end of 2007.
In March 2007, the Company completed the initial public offering of Xinhua
Finance Media ("XFMedia", Nasdaq: XFML), a subsidiary under the Distribution
service line, raising net proceeds of about $200 million, to help accelerate
the expansion of this business line. During the year, XFMedia grew robustly
given the booming advertising market in China. XFMedia built its leading
position as a media group in China and strengthened its unique platform which
provides clients with nationwide access to the large and growing upwardly
mobile demographic.
CFO David Wang said, "XFL turned in a strong performance in 2007 with
substantial growth in both top and bottom lines. As the Company further
expands, we will continue our integration efforts between the content and
distribution businesses in order to improve the profitability, cost controls
and operational efficiency of the entire group."

2007 vs. 2006 and vs. 2007 Forecast (IFRS) -- unit: USD million

2007 2006 Variance 2007F Variance
Revenue 257.7 175.0 47 % 260.0 -1%
Proforma EBITDA (1) 54.3 32.4 68 % 60.5 -10%
EBITDA (2) 39.0 23.3 67 % 46.6 -16%
Net Income 56.5 18.7 201 % 57.3 -1%

Continuing Operations (3)
2007 vs. 2006 (IFRS) -- unit: USD million

2007 2006 Variance
Revenue 247.5 161.2 54%
Proforma EBITDA (1) 57.2 26.2 119%
EBITDA (2) 42.2 17.1 147%

2008 Forecasts (IFRS) -- unit: USD million

2008 Forecasts
Revenue 327.2
Proforma EBITDA (1) 63.0
EBITDA (2) 45.9
Proforma Net Income (4) 7.3
Net Income -9.2

(1) Proforma EBITDA is EBITDA excluding non-cash ESOP expense and
excluding one time items.
(2) EBITDA for the year ended December 31, 2007 includes non-cash one time
charge of US$5.7m from the revaluation of a convertible loan, one time
legal expenses of US$0.6m and non-cash ESOP expenses of US$9.1m.
(3) Due to changes in the composition of our business as a result of the
divestiture or discontinuation of certain subsidiaries, we also
present results from continuing operations.
(4) Proforma Net Income is calculated by taking net income and excluding
non cash depreciation and amortization charges, share based
compensation expenses and one time non recurrent items.

(Notes)
A. We define EBITDA in relation to our IFRS financial statements as profit
or loss before interest, tax, depreciation and amortization.
B. Forecasts for fiscal 2008 are management estimates only; figures have
not been audited or reviewed.
C. Performance estimates are determined based on information currently
available. Due to unforeseen factors, actual performance may differ
from estimates.

About Xinhua Finance Limited
Xinhua Finance Limited ("XFL") 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), XFL leverages its
content across multiple distribution channels in China including television,
radio, newspaper, magazine and outdoor media. Founded in November 1999, XFL is
headquartered in Shanghai, with offices and news bureaus spanning 11 countries
worldwide.
For more information, please visit www.xinhuafinance.com .
This is a press release to the public and should not be relied on as
information to make an investment decision by any investor. Investors should
read the Company's Securities Report filed to the Tokyo Stock Exchange and
consider the risk factors together with other information contained therein
when making an investment decision. This press release contains some forward-
looking statements that involve a number of risks and uncertainties. A number
of factors could cause actual results, performance, achievements of the
Company or industries in which it operates to differ materially from any
future results, performance or achievements expressed or implied by these
forward-looking statements.
More Information:

Media Contact
Xinhua Finance
Ms. Joy Tsang
Tel: +852-9486 4364, +86-21-6113-5999
Email: joy.tsang@xinhuafinance.com

IR Contact
Xinhua Finance
Shanghai
Ms. Jennifer Chan Lyman
Tel: +86-21-6113-5960
Email: jennifer.lyman@xinhuafinance.com

Taylor Rafferty
Japan
Mr. James Hawrylak
Tel: +81-3-3221-9513
Email: james.hawrylak@taylor-rafferty.com

United States
Mr. John Dooley
Tel: +1-212-889-4350
Email: john.dooley@taylor-rafferty.com

SOURCE Xinhua Finance Limited

media, Ms. Joy Tsang, +852 9486 4364, +86 21 6113 5999,
joy.tsang@xinhuafinance.com; investors, Shanghai, Ms. Jennifer Chan Lyman, +86
21 6113 5960, jennifer.lyman@xinhuafinance.com, both of Xinhua Finance
Limited; Taylor Rafferty: Japan, Mr. James Hawrylak, +81 3 3221 9513,
james.hawrylak@taylor-rafferty.com, United States, Mr. John Dooley,
+1-212-889-4350, john.dooley@taylor-rafferty.com, both for Xinhua Finance