XFMedia Announces Divestment to Focus on Sports and Entertainment

BEIJING, Dec. 30 /PRNewswire-Asia-FirstCall/ -- XFMedia (NASDAQ:XFML), a leading media group in China, today announced the divestment of its Hong Kong based outdoor advertising business, Convey Advertising Company, Ltd. ("Convey"), to Pariya Holdings Limited, a company controlled by the management and original sellers of Convey, for a total purchase price of US$85 million.

Ms. Fredy Bush, XFMedia's Chief Executive Officer commented, "We are pleased to announce this divestment, which is in line with our strategy to focus on sports and entertainment content and distribution in China as this sector continues to show strong growth opportunities.  Additionally, the divestment will improve our liquidity position as we prepare the Company for future growth." Ms. Bush continued, "Given current market conditions, we are very pleased with the terms of the deal.  Looking ahead, we will continue to restructure our businesses to focus on sports and entertainment, which could give rise to material one-time non-cash charges in the fourth quarter of 2008."

About XFMedia

Xinhua Finance Media ("XFMedia"; Nasdaq: XFML) is a leading media group in China with nationwide access to the upwardly mobile demographic. Through its synergistic business groups, Broadcast, Print and Advertising, XFMedia offers a total solution empowering clients at every stage of the media process and connecting them with their target audience. Its unique platform covers a wide range of media assets, including television, radio, newspaper, magazine, outdoor, online and other media assets.

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.xfmedia.cn/ .

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. 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 include, but are not limited to, risks outlined in XFMedia's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20. All information provided in this press release is as of the date hereof, and XFMedia undertakes no duty to update such information, except as required under applicable law.

  For more information, please contact:

  Media Contact
   Joy Tsang
   Tel:   [phone]
   Email: 

  IR Contact
   Edward Liu
   Tel:   [phone]
   Email: 

   Howard Gostfrand
   American Capital Ventures
   Tel:   [phone]
          [phone] (Toll Free)
   Email: 

DATASOURCE: Xinhua Finance Media



CONTACT: Media Contact, Joy Tsang, [phone], or

; IR Contact, Edward Liu, [phone], or

; or Howard Gostfrand, American Capital Ventures,

[phone], or [phone] (Toll Free), or  



Web site: http://www.xfmedia.cn/ 

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