Xinhua Highlights 2008 Results With 8 Percent Increase In Revenue

Xinhua Finance Limited, China's financial information service provider, reports consolidated revenue for the year ended 31 December 2008, under International Financial Reporting Standards ("IFRS"), of US$279.4 million, an 8% increase over 2007. EBITDA was negative US$457.3 million and net loss

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Xinhua Finance Limited, China’s financial information service provider, reports consolidated revenue for the year ended 31 December 2008, under International Financial Reporting Standards (“IFRS”), of US$279.4 million, an 8% increase over 2007.

EBITDA was negative US$457.3 million and net loss was US$341.7 million. Proforma EBITDA, adjusted to exclude non-cash ESOP expenses and one-time items, was US$50.3 million versus US$52.0 million in 2007. Adjusting for the divestiture or discontinuation of certain businesses in 2008 and 2007, revenue from continuing operations increased 24%, from US$24.7 million in 2007 to US$30.6 million in 2008.

Primarily due to the aforementioned impairments, the Company generated a net loss for the year of US$341.7 million. On a proforma basis, after excluding non-cash and one-time items, proforma net income was US$2.9 million compared to US$1.8 million in 2007.

“The sale and divestiture of non core assets has allowed us to generate funds to redeem bonds, which will give us greater flexibility,” says Jae Lie, CEO, XFL. “This is also in line with our overall strategy to streamline and focus on our core competency, which is the provision of proprietary and value- added information and services of China’s financial markets.”

“The deconsolidation of XFMedia is in line with this strategy and improves transparency and provides a clearer picture of the underlying businesses as well as reduces reporting costs. In 2009, we will continue to focus on our core businesses of Indices, Ratings and Solutions and pursue strategies that will improve shareholder value.”

“Upon the successful completion of the tender offer, we will have redeemed US$90 million of the Notes, leaving US$10 million outstanding,” says David Wang, CFO, XFL. “For 2009 we will continue cutting costs and improving operational efficiencies.”

L.D.

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