China Housing & Land Development Reports Financial Results for the First Quarter...

China Housing & Land Development Reports Financial Results for the First Quarter 2008

Total revenues down 42 percent, net income down 94 percent, which
is consistent with the nature of the real estate development business.

Special message about the Sichuan earthquake of May 12, 2008
XI'AN, China--(Business Wire)--
Mr. Pingji Lu, chairman and chief executive officer of China
Housing & Land Development, Inc., said, "We extend our heartfelt
sympathy to all those who were affected by the earthquake and
aftershocks that hit in the Sichuan province on May 12. To aid in the
recovery, China Housing is donating 1 million renminbi to the
earthquake relief effort, and employees of the company are also making
additional individual contributions.

"Here in Xi'an, we experienced a far weaker quake, since we are
several hundred miles from the epicenter. With every natural disaster,
we are reminded of the enormous power of nature. As we design,
engineer, and construct our communities and buildings, we take very
seriously our responsibility to respect and anticipate, to the best of
our ability, the potentially huge energy forces that may stress our
products during their long lives.

"Naturally, we wanted to know how every building we have
constructed performed, so we have inspected each one to answer two
fundamental questions. First, how did the buildings and facilities
perform during the earthquake and aftershocks? This of course is
primarily to see if there are further lessons that can be learned as
we look back at the decisions made and actions taken in creating each
building. More important and pressing is the second question, do any
of them have any immediate safety issues after experiencing the
earthquake forces? In our inspections, we found no safety issues and
no significant effects to our buildings. We also inspected our
construction currently in progress and found no problems there,
either.

"So far, we seem to be anticipating the mechanical, fluid
dynamics, and other consequences of earthquakes. But the largest
massive quakes with very destructive wave motions and very high energy
levels may still be beyond humankind's ability to engineer and to
construct buildings that can prevent all human injury and physical
damage . Those very high forces are too great and our best materials
too weak to protect us completely. In doing our work, we will continue
to strive to create the best protection we can, so that at least some
people may be spared the devastation, injury, and death similar to
what the citizens of the Sichuan province started to experience on May
12.

"Thank you in advance for contributing whatever you can to the
relief effort for the victims of earthquake in Sichuan province. We
wish you good health, safety, and happiness."

Review of the results for the first quarter 2008

Highlights of the First Quarter 2008

-- Total revenues were $4,746,638, a decrease of 42.09 percent
from $8,196,197 in the first quarter 2007.

-- Net income was $47,686, a decrease of 93.98 percent from
$792,502 in the first quarter 2007.

-- Basic earnings per share were $0.00 per share, a 100.00
percent decrease from $0.04 per share in the first quarter
2007.

-- Diluted earnings per share were $(0.01) per share, a 125.00
percent decrease from $0.04 per share in the first quarter
2007.

-- Cash flow from operating activities used $3,527,844, a
decrease of 793.63 percent from the first quarter 2007.

-- Cash flow from investing activities consumed $245,617, which
was 15.07 percent less than was consumed in the first quarter
2007.

-- Cash flow from financing activities provided $15,961,385, up
3,887.1 percent from the first quarter 2007.

-- The increase in cash for the first quarter was $12, 187,924.

-- Net debt as a percentage of total capital was 25.19 percent at
March 31, 2008 compared with 27.79 percent on December 31,
2007.

Xi'an, China - May 14, 2008 - China Housing & Land Development,
Inc., (OTC BB: CHLN through May 15, 2008; NASDAQ: CHLN starting May
16, 2008) reported that net income for the first quarter 2008
decreased 93.98 percent to $47,686 from $792,502 in the first quarter
2007, and earnings per diluted share decreased 125.00 percent to
$(0.01) per share in the first quarter 2008 from $0.04 per diluted
share in the first quarter 2007.

Mr. William Xin, chief financial officer of China Housing & Land
Development, Inc., said, "Revenues for our real estate development
business in the past have been reported only when each project has
been completed. To better reflect our operating activity, this quarter
we adopted the percentage of completion method of accounting for our
housing projects, and we have restated the first quarter of 2007 so
that both first quarters are comparable. That method, of course, does
not apply to the land phase of our real estate development business,
which will continue to be reported when transactions have been
completed.

Mr. Pingji Lu, chairman and chief executive officer of China
Housing & Land Development, Inc., continued, "We operate our business
using very detailed plans for each project, so we know every milestone
and our precise progress, as well as the tasks ahead. That gives us
good confidence in using the percentage of completion method to report
revenues in accordance with generally accepted accounting principles.

Mr. Lu added, "You are probably interested our market. The Xi'an
real estate market continues to be strong, with demand for housing
still exceeding available supply. Real estate revenues for housing in
greater Xi'an increased 76.2 percent in the first quarter of 2008
compared with the first quarter of 2007. In the first quarter of 2008,
average housing prices for units sold (the owners took possession) in
greater Xi'an increased 14.3 percent compared with the first quarter
of 2007. The average square footage for housing sold in greater Xi'an
during the first quarter 2008 increased 7.1 percent from the first
quarter of 2007. We do not see a housing bubble in the greater Xi'an
market."

Mr. Lu explained, "Our growth factors continue to be valid. The
eight factors that will drive our growth in the next decade are 1) the
continuing migration from rural to urban areas as people seek higher
incomes and greater wealth, 2) China's "Go West" policy that
encourages people to move from the high-density cities on China's
eastern coast to growing regions like Xi'an, 3) China's continuing
double-digit economic growth, 4) the development of new technology
companies in the region, 5) multinational corporations that are
choosing our area for their Chinese headquarters, 6) Xi'an's
affordability and attractiveness as a vibrant second-tier city with an
ancient heritage, 7) Xi'an's city-center tourism redevelopment plan
that will move 450,000 citizens from the inner city to the outer
regions of the city, and more specifically, 8) our operations in the
Baqiao area eight kilometers east of the Xi'an city center. In the
Baqiao housing and land development project, we are responsible for
the creation of infrastructure, and the creation and sale of housing,
commercial, and industrial facilities within our 487 acres."

"All in all, our market remains healthy, and we are pleased with
our progress."

Mr. Lu added, "Our strategy and actions continue to advance in the
Baqiao project. We are in the midst of creating co-development
relationships with other companies for both land improvement and
residential and commercial design and construction, which will to
reduce our cash requirements for project development, further assure
the project's completion and success, and increase the project's
visibility.

"We believe that co-development and co-joint ventures will create
and capture more value added from the Baqiao project for us, by
leveraging our resources through others and sharing the risks.
Although the project started for us initially as purely a land sales
opportunity when we took over the project, it quickly has evolved into
a logical set of development designs, phases, and actions that can be
accomplished best through co-development, co-joint ventures, and
partnering."

Listing on NASDAQ

China Housing & Land Development also announced that its common
stock would begin trading on the Nasdaq Capital market on May 16, 2008
using the ticker symbol CHLN.

The stock's last trading day on the OTC Bulletin Board will be May
15, 2008.

Mr. William Xin, chief financial officer of China Housing & Land
Development, explained, "China Housing & Land Development will be the
first and so far only Chinese real estate development company to be
traded on NASDAQ.

He continued, "March 16th will be a wonderful day for China
Housing, since trading on NASDAQ will increase our visibility and
should create higher trading volumes and increased liquidity for
shareholders, as well as further enhance our ability to pursue
potential opportunities as we deliver attractive results for our
shareholders. We are very pleased to be on NASDAQ."

First quarter 2008 results

Adoption of the percentage of completion method of accounting

In the first quarter, the company adopted the percent completion
method of accounting for its housing projects.

Real estate sales are reported in accordance with the provisions
of Statement of Financial Accounting Standard No. 66, "Accounting for
Sales of Real Estate." Profit from the sales of development
properties, less 5 percent business tax, is recognized by the
percentage of completion method on the sale of individual units when
all the following criteria are met:

a. Construction is beyond a preliminary stage.

b. The buyer is committed to the extent of being unable to require
a refund except for non-delivery of the unit or interest.

c. Sufficient units have already been sold to assure that the
entire property will not revert to rental property.

d. Sales prices are collectible.

e. Aggregate sales proceeds and costs can be reasonably estimated.

If any of the above criteria is not met, proceeds shall be
accounted for as deposits until the criteria are met.

Under the percentage of completion method, revenues from
condominium units sold and related costs are recognized over the
course of the construction period, based on the completion progress of
a project. In relation to any project, revenue is determined by
calculating the ratio of incurred costs, including land use rights
costs and construction costs, to total estimated costs and applying
that ratio to the contracted sales amounts. Cost of sales is
recognized by determining the ratio of contracted sales during the
period to total estimated sales value, and applying that ratio to the
incurred costs. Current period amounts are calculated based on the
difference between the life-to-date project totals and the previously
recognized amounts.

Revenues

Net revenues for the first quarter 2008 were $4,746,637, a
decrease of 42.09 percent from $8,196,197 in the first quarter 2007.

Looking at revenues by our major projects, Project Tsining-24G
revenues in the first quarter 2008 decreased 102.04 percent to
$(145,931) compared with $7,128,387 in the first quarter of 2007. The
revenue decrease was due to the 24G project being completed and sold
during 2007. Three disputed units were returned from customers in the
first quarter of 2008, which resulted in the negative revenue in the
first quarter 2008.

Project Tsining JunJing I revenues in the first quarter 2008 grew
676.45 percent to $4,206,958 from $541,817 in the first quarter 2007
because we sold multiple floors in one building for a hotel business
in the project in March 2008.

Revenues in the first quarter 2008 for Additional projects
decreased 67.73 percent and totaled $121,122 compared with $375,372 in
the first quarter of 2007. Additional projects principally included
small projects. The increase in Additional projects revenues in the
first quarter 2008 was due primarily to the sale of an occupied
residential-commercial building and the sale of several units in the
company's older projects.

The Baqiao infrastructure construction project generated revenues
of $328,181 in the first quarter 2008 compared with no revenue in the
first quarter 2007. The company acquired the infrastructure
construction project in March 2007, and the first revenues occurred in
the fourth quarter of 2007. The revenues in the first quarter 2008
were interest income generated from investing, and continued river
management and suburban planning for the entire Baqiao high-technology
industrial park.

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Revenue by project 3 months ended 3 months ended
(US$ in millions) March 31, 2008 March 31, 2007

Projects

Tsining-24G $ (0.1) $ 7.1
Tsining JunJing I 4.2 0.5
Additional projects 0.1 0.4
Baqiao infrastructure construction 0.3 0.0
---------------- ---------------

Sales of properties $ 4.5 $ 8.0
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Other income in the first quarter 2008 increased 47.85 percent to
$222,692 from $150,621 in the first quarter 2007 primarily due to a
property clean-up project performed in first quarter 2008.

Cost of sales

The cost of sales in the first quarter 2008 decreased 62.14
percent to $2,367,112 compared with $6,251,458 in the first quarter
2007. The lower cost of sales was primarily due to the absence of the
Tsining-24G project's cost of sales that were recognized when the
project was sold in the first quarter 2007.

Gross profit margin

Gross profit in the first quarter 2008 was $2,379,525, up 22.36
percent from $1,944,739 in the first quarter 2007. The gross profit
margin for the first quarter 2008 was 50.13 percent compared with
23.73 percent for the first quarter 2007. The increases in gross
profit and gross profit margin were primarily due to the sale of
commercial-and-apartment buildings in the first quarter 2008 that had
higher profit margins than the residential buildings sold in the first
quarter of 2007.

Selling, general, and administrative expenses

Selling, general, and administrative expenses in the first quarter
2008 increased 130.61 percent to $1,148,601 from $498,079 in the first
quarter 2007. The higher selling, general, and administrative expenses
in the first quarter 2008 were due primarily to the selling expenses
for the new Tsining JunJing II project, for which the sales effort
began in the fourth quarter of 2007.

Other expenses

Other expenses in the first quarter 2008 decreased 51.23 percent
to $15,910 compared with $32,619 in the first quarter 2007. The first
quarter 2008 decline was primarily due to the 2008 absence of the
expenses in the first quarter 2007 associated with the normal added
finishing in the Tsining JunJing I and Tsining-24G projects desired by
the customers to reach final satisfaction.

Operating profit and operating profit margin

Operating profit in the first quarter 2008 decreased 14.08 percent
to $1,215,014 from $1,414,041 in the first quarter 2007 due primarily
to the absence of profits from the Tsining-24G sold in the first
quarter of 2007 and the higher selling expenses for the new Tsining
JunJing II project in the first quarter of 2008.

The operating profit margin increased to 25.60 percent in the
first quarter 2008, compared with 17.25 percent in the first quarter
2007, primarily due to the higher profit margins on the
commercial-and-apartment buildings sold in the first quarter of 2008,
compared with the profit margins on the residential buildings sold in
the first quarter of 2007.

Interest Expense

Interest expense in the first quarter 2008 increased 111.51
percent to $439,673 from $207,876 in the first quarter 2007. The
increase in the first quarter 2008 was due primarily to the 2007 and
2008 financings associated with the purchase in March 2007 of the
company that owned the exclusive right to develop the Baqiao project
and perform the related infrastructure construction. The financings
included the issuance of common stock and warrants in December 2007
and the issuance of convertible debt and warrants in January 2008.

Change in fair value of warrants

In 2006, 2007, and 2008 the company issued warrants in conjunction
with the issuance of common shares, warrants, or convertible debt. The
warrants permit the shareholders to buy additional common shares at
the prices specified in the warrant agreements. In the first quarter
2008, shareholders exercised a total of 1,870 warrants to buy a total
of 1,870 common shares. When a shareholder exercises a warrant to buy
common shares, typically only when the stock price is higher than the
warrant exercise price, the shareholder covers the exercise price and
company covers the balance of the value to provide the common shares.
In addition, in the first quarter 2008, the company was required to
estimate the fair value of its remaining warrants outstanding, and it
chose to use the Cox-Ross-Rubinstein Binomial Lattice valuation model
to estimate their fair value.

The change in fair value of warrants of $(9,489) in the first
quarter 2008 consisted of (a) the cost to the company of the warrants
issued in 2008, (b) a result of the exercise of warrants in February
2008, and (c) the periodic adjustment to the estimated cost to the
company to provide the common shares, assuming that all the warrants
will be exercised sometime in the future. The basis for estimating the
cost to provide those common shares was provided by the valuation
model.

Provision for income taxes and the effective income tax rate

The effective tax rates for the years 2008 and 2007 were 85.49
percent and 34.30 percent, respectively. The primary reason for the
higher effective tax rate was that the Change in fair values of
embedded derivatives and warrants could not be deducted from the
income before income taxes. The China government changed the income
tax rate from 33 percent to 25 percent, effective January 1, 2008.

Net income

Net income in the first quarter 2008 decreased 93.98 percent to
$47,686 from $792,502 in the first quarter 2007. The decrease in net
income was due primarily to four reasons. The first reason was lower
net revenues, because most of the housing units in the finished
projects had already been sold prior to the first quarter 2008, so
only a few units were available to be sold during the first quarter of
2008. The new Tsining JunJing II project was not yet able to generate
revenues because it was still being constructed. Second, the company
incurred selling expenses for the new Tsining JunJing II project, for
which the sales effort began in the fourth quarter of 2007. Third, the
company issued convertible debt and warrants in January 2008, which
required higher interest expense during the first quarter 2008, a
$171,683 accretion expense on the convertible debt during the first
quarter 2008, a $284,511 change in fair value of embedded derivatives
as of March 31, 2008, and a $9,389 net reduction to the change in fair
value of warrants as of March 31, 2008. The fourth reason was the
higher provision for income taxes explained above.

Basic and diluted earnings per share

Basic earnings per share were $0.00 for the three months ended
March 31, 2008, down 100.00 percent from $0.04 for the three months
ended March 31, 2007. Diluted earnings per share were $(0.01) for the
three months ended March 31, 2008, down 125.00 percent from $0.04 for
the three months ended March 31, 2007. The basic and diluted earnings
per share were both $0.04 for the three months ended March 31, 2007
because the warrants were anti-dilutive.

Common shares used to calculate EPS

The weighted average shares outstanding used to calculate Basic
earnings per share were 30,142,565 shares for the first quarter 2008
and 20,669,223 shares for the first quarter 2007.

The weighted average shares outstanding used to calculate Diluted
earnings per share were 30,230,664 shares for the first quarter 2008
and 20,699,223 shares for the first quarter 2007.

The increases in the weighted average shares outstanding used to
calculate basic and diluted earnings per shares for the first quarter
2008 compared with the first quarter 2007 were due to the common
shares and warrants issued in December 2007 and the convertible debt
and warrants issued in January 2008.

Gain on foreign exchange

The company operates in China and accounts in the Chinese renminbi
but reports its financial results in U.S. dollars, based on the
exchange rates of the two currencies. During 2008, the renminbi
appreciated in value against the U.S. dollar, which when translating
the operating results and financial positions at different exchange
rates, created the accrued gain on foreign exchange.

Cash flow

Cash flow from operating activities for the three months ended
March 31, 2008 decreased 793.63 percent to $(3,527,844) from the first
quarter 2007, primarily due non-cash proceeds from the sales of real
estate and deposit on land use rights.

Cash flow from investing activities in the first quarter 2008
consumed $245,617, which was 15.07 percent less than was consumed in
the first quarter 2007, primarily due to the absence of the first
quarter 2007 purchases of buildings, equipment, and automobiles.

Cash flow from financing activities in the first quarter 2008
provided $15,961,385, up 3,887.05 percent from the first quarter 2007,
primarily due to the issuance of convertible debt and warrants in the
first quarter of 2008, partly offset by payments on loans payable to
New Land's previous shareholders during the first quarter 2008.

As a result of the above cash flow changes from operating,
investing, and financing activities, the increase in cash for the
first quarter 2008 was $12,187,924 compared with $(126,311) for the
first quarter 2007.

Debt leverage

Total debt outstanding as of March 31, 2008 was $38,526,000
compared with $27,922,125 on December 31, 2007. Net debt outstanding
(total debt less cash) as of March 31, 2008 was $23,487,270 compared
with $25,469,759 on December 31, 2007. The company's net debt as a
percent of total capital (net debt plus shareholders' equity) was
25.19 percent on March 31, 2008 and 27.79 percent on December 31,
2007. The decrease in net debt as a percent of total capital was
primarily due to the issuance of convertible debt and warrants in
January 2008 and payments on loans payable to New Land's previous
shareholders in January 2008.

Total debt consists of the sum of the balance sheet lines titled
payable to original shareholders, loans payable to New Land's previous
shareholders, loans from employees, loans payable, and convertible
debt.

About China Housing & Land Development, Inc.

Based in Xi'an, the capital city of Shaanxi province in China,
China Housing & Land Development, Inc., is a leading private developer
of residential and commercial properties in northwest China. China
Housing has been engaged in land acquisition, development, and
management, including the sales of commercial and residential real
estate properties through its wholly-owned subsidiary in China, since
1992.

In 2006, China Housing & Land Development became a U.S. publicly
traded company registered in the state of Nevada in the U.S.A. By
leveraging its strong relationships with China's local state
authorities, China Housing & Land Development, Inc., has been able to
capitalize on the supply of available land and develop residential and
commercial properties, further enhancing China Housing's brand
recognition and outperforming its competitors in medium size
residential and commercial real estate developments in the region of
Xi'an.

Conference call and webcast

China Housing & Land Development will webcast its earnings
conference call at 8:00 a.m. eastern daylight time (U.S.A.) on Friday,
May 16, 2008. A live audio broadcast of the conference call will be
available on the investor relations page of the company's website at
www.chldinc.com.

Safe Harbor

This news release may contain forward-looking information about
China Housing & Land Development, Inc., which is covered under the
safe harbor for forward-looking statements provided by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
are statements that are not historical facts. These statements can be
identified by the use of forward-looking terminology such as believe,
expect, may, will, should, project, plan, seek, intend, or anticipate
or the negative thereof or comparable terminology, and include
discussions of strategy, and statements about industry trends and
China Housing & Land Development's future performance, operations, and
products.

Such statements are subject to risks and uncertainties that could
cause actual results to differ materially from those projected. Actual
performance results may vary significantly from expectations and
projections. Further information regarding this and other risk factors
are contained in China Housing & Land Development, Inc.'s public
filings with the U.S. Securities and Exchange Commission. All
information provided in this news release and in the attachments is as
of May 14, 2008, and the Company does not undertake any obligation to
update any forward-looking statement as a result of new information,
future events or otherwise, except as required under applicable law.

China Housing & Land Development news releases, project
information, photographs, and more are available on the internet at
http://www.chldinc.com.

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China Housing & Land Development Inc. and Subsidiary
Consolidated Balance Sheets
As of March 31, 2008 and December 31, 2007

March 31, December 31,
2008 2007
U.S. Dollars (Unaudited) (Unaudited)
Assets

Cash $ 14,933,102 $ 2,351,015

Cash - restricted 105,627 101,351

Accounts receivable, net of allowance for
doubtful accounts of $98,323 and $94,514,
respectively 12,740,498 12,107,882

Other receivables, prepaid expenses and
other assets 660,134 567,308

Notes receivable, net 3,828,787 947,918

Real estate
Finished projects 14,697,711 16,130,130
Construction in progress 28,625,865 24,856,801
----------- -----------

Total real estate held for development or
sale 43,323,576 40,986,931

Property and equipment, net 6,160,749 5,707,012

Assets held for sale 13,430,748 12,910,428

Advance to suppliers 2,459,543 2,071,549

Deposits on land use rights 32,062,120 29,694,103

Deferred financing cost 742,265 55,451

Intangible assets, net 50,148,499 48,205,697
----------- -----------

Total assets $180,595,648 $155,706,645
=========== ===========
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March 31, December 31,
2008 2007
(Unaudited) (Unaudited)
Liabilities
Accounts payable $ 9,173,114 $ 9,311,995
Advances from customers 5,923,646 5,258,351
Accrued expenses 2,033,774 1,903,451
Payable to original shareholders 8,849,820 11,413,229
Income and other taxes payable 24,096,765 22,711,981
Other payables 4,282,280 3,881,137
Loans from employees 2,162,420 2,388,862
Loans payable 14,689,104 14,120,034
Deferred tax 16,549,005 15,907,880
Warrants liability 6,035,306 2,631,991
Fair value of embedded derivatives 4,211,886 --
Convertible debt 12,824,655 --
----------- -----------

Total liabilities 110,831,775 89,528,911
----------- -----------

Shareholders' equity
Common stock: $.001 par value, authorized
100,000,000 shares, issued and outstanding
30,143,757 and 30,141,887, respectively 30,144 30,142
Additional paid in capital 28,391,500 28,381,534
Statutory reserves 2,885,279 2,885,279
Retained earnings 30,412,841 30,365,156
Accumulated other comprehensive income 8,044,109 4,515,623
----------- -----------

Total shareholders' equity 69,763,873 66,177,734
----------- -----------

Total liabilities and shareholders' equity $180,595,648 $155,706,645
=========== ===========
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China Housing & Land Development Inc. and subsidiary
Consolidated Statements of Income and other comprehensive income
For the three months ended March 31, 2008 and 2007

Three months ended
March 31, March 31,
2008 2007
U.S. Dollars (Unaudited) (Unaudited)

Revenues
Sale of properties $ 4,523,945 $ 8,045,576
Other income 222,692 150,621
---------- ----------

Total revenues 4,746,637 8,196,197

Costs and expenses
Cost of properties s and land 2,367,112 6,251,458
Selling, general and administrative expenses 1,148,601 498,079
Other expense 15,910 32,619
Interest expense 439,673 207,876
Accretion expense on convertible debt 171,683 --
Change in fair value of embedded derivatives 284,511 --
Change in fair value of warrants (9,489) --
---------- ----------

Total costs and expense 4,418,001 6,990,032
---------- ----------

Income before provision for income taxes 328,636 1,206,165
Provision for income taxes 280,951 413,663
---------- ----------

Net income 47,685 792,502
Gain (loss) on foreign exchange 3,047,864 253,357
---------- ----------

Comprehensive income $ 3,095,549 $ 1,045,859
========== ==========

Weighted average shares outstanding
Basic 30,142,565 20,669,223
Diluted 30,230,664 20,669,223

Earnings per share
Basic $ 0.00 $ 0.04
========== ==========
Diluted $ (0.01) $ 0.04
========== ==========
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China Housing & Land Development Inc. and subsidiary
Consolidated Statement of Cash Flow
For the three months ended March 31, 2008 and 2007

Three months ended
March 31, March 31,
2008 2007
U.S. Dollars (Unaudited) (Unaudited)

Cash flows from operating activities:
Net income $ 47,685 $ 792,502
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Allowance for bad debt -- 512,654
Depreciation 93,821 169,861
Amortization of deferred financing costs 28,458 --
Loss on disposal of fixed assets and
inventory 86 472
Issuance of stock for investor relations
fees
Amortization of stock issued for
investor relations fees -- 32,850
Gain on sales of investment
Change in fair value of warrants (9,489) --
Change in fair value of embedded
derivatives 284,511 --
Accretion expense on convertible debt 171,683 --
Non-cash proceeds from sales (2,851,908) --
(Increase) decrease in assets:
Accounts receivable (141,670) 401,374
Real estate (670,715) 5,097,643
Advance to suppliers (298,253) (4,691,540)
Deposit on Land use rights (1,147,224) --
Other receivable (12,024) (388,692)
Increase (decrease) in liabilities:
Accounts payable (503,618) 170,026
Advances from customers 444,062 (913,140)
Accrued expense 337,253 (274,003)
Other payable 239,699 (734,292)
Income and other taxes payable 459,799 332,894
----------- -----------

Net cash provided by (used in) operating
activities (3,527,844) 508,609
=========== ===========

Cash flows from investing activities:
Change in restricted cash (188) (102,718)
Purchase of buildings, equipment and
automobiles (313,056) (1,891)
Proceeds from sales of fixed assets 14 --
Notes receivable 67,613 (108,838)
----------- -----------
Payments to acquire subsidiary, net of cash
received

Net cash provided by (used investing
activities (245,617) (213,447)
=========== ===========

Cash flows from financing activities:
Net proceeds from issuance of convertible
debt 19,230,370 --
Loan proceeds -- 645,050
Payments on loans -- (1,457,813)
Repayments on employee loans (470,781) --
Proceeds from employee loans 154,688 391,290
Loans from original shareholders (2,961,307) --
Proceeds from issuance of common stock and
warrants 8,415 --
----------- -----------

Net cash provided by financing activities 15,961,385 (421,473)
=========== ===========

Increase in cash $ 12,187,924 $ (126,311)

Effects on foreign currency exchange 394,163 3,865

Cash, beginning of period 2,351,015 379,633

Cash, end of period $ 14,933,102 $ 257,187
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China Housing & Land Development Inc. and subsidiary
Consolidated Statements of Shareholders' Equity
For the three months ended March 31, 2008, 2007, 2006 and 2005

Additional
Common Stock paid in Statutory
Shares Par capital reserves
Value

Balance, December 31, 2004 20,000,000 $20,000 $ 5,442,798 $ 523,538

Net Income -- -- -- --
Adjustment to statutory
reserve -- -- -- 710,640
Foreign currency
translation adjustment -- -- -- --

---------- ------ ---------- ---------
Balance, December 31, 2005 20,000,000 $20,000 $ 5,442,798 $1,234,178
---------- ------ ---------- ---------

Common stock issued for
cash at $3.25 619,223 619 1,749,802 --
Net Income -- -- -- --
Adjustment to statutory
reserve -- -- -- 915,960
Capital contribution
receivable -- -- -- --
Foreign currency
translation adjustment -- -- -- --

---------- ------ ---------- ---------
Balance, December 31, 2006 20,619,223 $20,619 $ 7,192,600 $2,150,138
---------- ------ ---------- ---------

Common stock issued for
consulting service 60,000 60 131,340 --
Common Stock and warrants
issued at $2.70 9,387,985 9,388 20,532,623 --
Common Stock issued from
warrants conversion 74,679 75 524,971 --
Net Income -- -- -- --
Adjustment to statutory
reserve -- -- -- 735,141
Capital contribution
receivable -- -- -- --
Foreign currency
translation adjustment -- -- -- --

---------- ------ ---------- ---------
Balance, December 31, 2007 30,141,887 $30,142 $28,381,534 $2,885,279
---------- ------ ---------- ---------

Common Stock issued from
warrants conversion 1,870 2 9,966 --
Net Income -- -- -- --
Foreign currency
translation adjustment -- -- -- --

---------- ------ ---------- ---------
Balance, March 31, 2008 30,143,757 30,144 28,391,500 2,885,279
---------- ------ ---------- ---------

Accumulated
Capital other
Retained contribution comprehensive
earnings receivable income Totals

Balance, December
31, 2004 $ 2,252,373 $ -- $ -- $ 8,238,709

Net Income 4,737,598 -- -- 4,737,598
Adjustment to
statutory
reserve (710,640) -- -- --
Foreign currency
translation
adjustment -- -- 242,783 242,783

---------- ------------ ------------- -----------
Balance, December
31, 2005 $ 6,279,331 $ -- $ 242,783 $ 13,219,090
---------- ------------ ------------- -----------

Common stock
issued for cash
at $3.25 -- -- -- 1,750,421
Net Income 9,050,810 -- -- 9,050,810
Adjustment to
statutory
reserve (915,960) -- -- --
Capital
contribution
receivable -- (5,462,798) -- (5,462,798)
Foreign currency
translation
adjustment -- -- 655,435 655,435

---------- ------------ ------------- -----------
Balance, December
31, 2006 $14,414,181 $ (5,462,798) $ 898,218 $ 19,212,958
---------- ------------ ------------- -----------

Common stock
issued for
consulting
service -- -- -- 131,400
Common Stock and
warrants issued
at $2.70 -- -- -- 20,542,011
Common Stock
issued from
warrants
conversion -- -- -- 525,046
Net Income 16,686,116 16,686,116
Adjustment to
statutory
reserve (735,141) -- -- --
Capital
contribution
receivable -- 5,462,798 -- 5,462,798
Foreign currency
translation
adjustment -- -- 4,098,027 4,098,027

---------- ------------ ------------- -----------
Balance, December
31, 2007 $30,365,156 $ -- $ 4,996,245 $ 66,658,356
---------- ------------ ------------- -----------

Common Stock
issued from
warrants
conversion -- -- -- 9,968
Net Income 47,685 -- -- 47,685
Foreign currency
translation
adjustment -- -- 3,047,864 3,047,864

---------- ------------ ------------- -----------
Balance, March
31, 2008 30,412,841 -- 8,044,109 69,763,873
---------- ------------ ------------- -----------
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For investors and media
China Housing & Land Development, Inc.
Jing Lu, +86 29.8258.2632 in Xi'an
Vice President & Board Secretary
jinglu@chldinc.com
or
William Xin, +86 150.9175.2090 in Xi'an
+1 917-371-9827 in San Francisco
Chief Financial Officer
william.xin@chldinc.com
or
Christensen Investor Relations
Tom Myers, +86 139.1141.3520 in Beijing
tmyers@christensenir.com
or
Kathy Li, +1 212-618-1978 in New York
kli@christensenir.com

Copyright Business Wire 2008