Xinhua China Book Preview System to Reach 10,000 Title Milestone in February

February 13, 2006

Entry Rate Accelerating

    BEIJING, Feb. 13 /Xinhua-PRNewswire/ -- Xinhua China
(OTC Bulletin Board: XHUA) the majority shareholder of the
leading book distributor in China, reported today that it
expects the number of titles entered into its Chapter One
China(TM) system to exceed 10,000 before the end of
February.  The company also expects the number of titles
available through the Chapter One system to continue
increasing beyond that level in the near future.  It said
the rate of entry is accelerating and a wider variety of
titles is being included.

    The only system of its kind in China, Chapter One China
allows book retailers and others in the Chinese market to
preview, through an on-line portal, titles they are
considering stocking in their stores.  Among the titles
being entered are textbooks, engineering and technical
volumes, literature, biographies, historical texts and
other non-fiction.  Titles in Chinese and other languages,
most notably English, are increasingly available for
preview through the system.  Book buyers have the ability
to search the database by title, author, publisher and ISBN
code and review the first chapter of any title before making
a buying decision, according to Xinhua China.

    Xianping Wang, president and CEO said, "The
ability to preview volumes on-line before making purchases
is particularly important in China because of the distances
involved in some areas.  Chapter One China will allow
bookstores in even the farthest provinces to make buying
decisions and stock titles that meet the needs of their
specific customers with the same speed and efficiency
available in major population centers.  

    "Our ultimate goal is to make available for
preview on the Chapter One China system every title
available in the Chinese market.  We have the capacity to
do so and we are well on our way toward that goal,"
Wang added.

    Wang noted that Xinhua China expects the development of
the Chapter One system to be a significant factor in the
growth of its operating subsidiary, Xinhua Publications
Circulation & Distribution Co., Ltd.  "We expect
to benefit from Chapter One in a variety of ways.  We
expect to reach agreements with many of the over 12,800
government-owned Xinhua bookstores, the thousands of
independent bookstores and on-line booksellers under which
we will provide access to the Chapter One system in return
for certain order volume placed through Xinuha C & D. 
We will also provide them with the option to subscribe to
the system for a modest annual fee."

    "The Chapter One system should also prove valuable
to on-line booksellers.  It will allow their customers to
review excerpts before making a purchase -- the equivalent
of browsing through a bookstore.  The growth of on-line
purchasing of books and other publications in China
provides an additional opportunity to grow our business. 
On-line sales require fulfillment services.  We are
uniquely positioned to provide those services by shipping
titles directly to consumers on a fee-for-service basis. 
The number of Internet users in China is projected to reach
600 million by the year 2010.  Internet commerce potentially
represents a major source of revenue and earnings for Xinhua
China," Wang concluded.

    About Xinhua China

    Xinhua China Ltd. is a U.S. publicly traded holding
company that, through one of its subsidiaries, Xinhua
Publications Circulation & Distribution Co., Ltd.,
holds a national license for distribution of books and
other publications in China.  Xinhua China is involved in
forming strategy, operating and financing for Xinhua C
& D.  Xinhua China also interfaces with the worldwide
financial communities to inform them of the combined
companies' goals and developments.  For more information,
please call Mr. Alex Helmel at 1-800-884-3864 ext. 17 or
visit its website at http://www.xinhuachina.com.cn .

    Safe Harbor Statement

    This news release may include forward-looking
statements within the meaning of section 27a of the UNITED
STATES SECURITIES ACT of 1933, as amended, and section 21e
of the UNITED STATES SECURITIES and EXCHANGE ACT of 1934,
as amended, with respect to achieving corporate objectives,
developing additional project interests, Xinhua China's
analysis of opportunities in the acquisition and
development of various project interests and certain other
matters.  These statements are made under the "safe
harbor" provisions of the United States private
securities litigation reform act of 1995 and involve risks
and uncertainties, which could cause actual results to
differ materially from those in the forward-looking
statements contained herein.

    For further information, please contact:

    At Xinhua China Ltd.:             
     Alex Helmel                       
     Investor Relations                
     Tel:   [phone] or [phone]      
     Email: [e-mail]           


    At The Investor Relations Company:
     Woody Wallace or Michael Arneth
     Tel:   [phone]
     Email: [e-mail] or [e-mail]

SOURCE  Xinhua China Ltd.