Moody's Upgrades Xinhua Finance's Ratings to B1

SHANGHAI, China, April 25 /Xinhua-PRNewswire/ -- Xinhua Finance Limited ("XFL"; TSE Mothers: 9399; OTC: XHFNY), China's premier financial information and media service provider, today announced that Moody's Investors Service has upgraded its corporate family rating and senior unsecured bond rating to B1 from B2.  The outlook for both ratings is stable.

Moody's said in its statement that the upgrade was based upon the IPO of XFL's subsidiary, Xinhua Finance Media's (XFMedia), as well as XFL's better- than-expected financial results for the full year 2006.

Moody's commented that, "The proceeds raised from the IPO of XFMedia had strengthened the group's liquidity.  The automatic conversion of all of the outstanding convertible preferred shares and convertible loans into Class A common shares under XFM has also improved the group's adjusted leverage."

Xinhua Finance Media 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.  It raised $300 million at its IPO on NASDAQ and debuted on March 9, 2007 under the ticker XFML.  XFL owns 36.9% of the Company following the IPO.

Moody's also acknowledged the ongoing positive developments in XFL's operational performance with FY06 operating results slightly ahead of expectations.

In February, XFL reported, under International Financial Reporting Standards ("IFRS"), 2006 full year consolidated revenue of US$175.0 million and net income of US$18.7 million, which represented gains of 59% and 82% respectively over those of the last fiscal year and came in ahead of forecasts of US$166.0 million and US$18.5 million, respectively.

Xinhua Finance CEO Fredy Bush said, "We're pleased to have received this upgrade, which represents Moody's' recognition of our strategy for long-term profitable growth and the strides we've made across all of our service lines, especially the milestone in our distribution business with Xinhua Finance Media successfully listed on NASDAQ."

"We're well positioned to deliver on our strategic plans to maintain our market leadership in our content service, and meanwhile profit from our unique distribution platform targeting the increasing high-net-worth demographics in China," she added.

According to Moody's, the stable outlook reflects its expectation that XFL would execute its business plan as planned and maintain its competitiveness in the near to medium term.

  Notes to Editors

  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 ADR: XHFNY).  Bridging China's financial markets and the world, Xinhua Finance serves financial institutions, corporations and re-distributors through four focused and complementary service lines: Indices, Ratings, Financial News and Investor Relations.  Founded in November 1999, the Company is headquartered in Shanghai with 20 news bureaus and offices in 19 locations across Asia, Australia, North America and Europe.

For more information, please visit http://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 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.

  For more information, please contact:

  Xinhua Finance
   Hong Kong/Shanghai
   Ms. Joy Tsang
   Tel:   [phone]
   Email: 

  Japan
   Mr. Sun Jiong
   Tel:   [phone]
   Email: 

  Taylor Rafferty (Media/IR Contact)
  Japan
   Mr. James Hawrylak
   Tel:   [phone]
   Email: 

  United States
   Mr. John Dudzinsky
   Tel:   [phone]
   Email: 

  Europe
   Faisal Kanth
   Tel:   [phone]
   Email: 

DATASOURCE: Xinhua Finance Limited



CONTACT:  Ms. Joy Tsang in Hong Kong/Shanghai, [phone],

[phone], [phone], or , Mr. Jiong

Sun in Japan, [phone], or ,  both of Xinhua

Finance; For Media/IR Contact in Japan, Mr. James Hawrylak, [phone],

or , or in United States, Mr. John Dudzinsky,

[phone], , or in Europe, Faisal

Kanth, [phone], or , all of Taylor

Rafferty for Xinhua Finance 



Web site:  http://www.xinhuafinance.com/ 

Copyright