Xinhua China Forms Online Digital Media Company

Xinhua China Forms Online Digital Media Company

May 22, 2006

Management restructuring to oversee new growth opportunities in digital publishing rights

    BEIJING, May 22 /Xinhua-PRNewswire/ -- Xinhua China
Ltd. ("Xinhua China" or, the "Company")
(OTC Bulletin Board: XHUA), a US-based holding company,
which owns a majority interest in a Chinese company that
holds a national license to distribute books in China, is
pleased to announce that the Company has formed a wholly
owned subsidiary, Beijing Joannes Information Technology
Co., Ltd. ("Joannes"), to focus on the sale and
distribution of digital media content online.

    This online merchandizing company -- branded
http://www.geezip.com -- is expected to launch October 1,
2006 and will sell e-books, e-audio and e-music.

    Xinhua China's decision to invest in online digital
rights reflects the maturing of the Chinese Internet market
in recent years. According to a report by the A.C. Nielsen
Consulting Group in November 2005, 63 percent of Internet
users in China said they had shopped online, and 56 percent
of that group said they had bought reading material that
way. About 24 percent of online shoppers said they had
bought audio-visual products.

    Xinhua China's CEO, Xianping Wang, said, "With
China rapidly becoming the most wired country in the world,
we are positioning ourselves to take advantage of the trend
for online content, particularly foreign content." Mr.
Wang added, "Internet usage in China by middle class
consumers is growing at an annualized rate of 60 percent.
There's no question China represents a great business
opportunity for online content and service
providers."

    To assist in the launch and management of the Company's
digital media strategy, Mr. Peter Shandro, currently a
director of Xinhua China, will assume the role of VP
Business Strategy. Previously, from 1999 to 2003, Mr.
Shandro was a founder, CEO and director of XML Global
Technology, a publicly traded software company specializing
in data transformation and web-based transactional
solutions. He has extensive experience in guiding early
stage companies and business restructuring.

    Additionally, the Company is pleased to announce that
Xinhua China's CFO Clement Wu will also become the
Secretary and Treasurer of the Company.

    About Xinhua China

    Xinhua China Ltd. is a US-based holding company with
publishing and distribution interests in China. Through its
subsidiary, Xinhua Publications Circulation &
Distribution Co., Ltd., the Company holds a national
license for distribution of books and other publications in
China.

    INVESTOR CONTACT:
    MR. ALEX HELMEL
    1 800 884 3864 (EXT. 17)

    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 more information, please contact:

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

     Woody Wallace or Michael Arneth,
     The Investor Relations Company
     Tel:   [phone]

SOURCE  Xinhua China Ltd.