Xinhua China Ltd. Updates News Release of May 30, 2006

Xinhua China Ltd. Updates News Release of May 30, 2006

June 06, 2006

Comments on Pending Acquisition of HDTV Text-Editing Software Company.

    BEIJING, June 6 /Xinhua-PRNewswire/ -- Xinhua China
Ltd. (OTC Bulletin Board: XHUA) today updated its news
release of May 30, 2006 that it has acquired the leading
Chinese High Definition Television text-editing software
company Bear Technology Company Limited.

    Xinhua China has not yet closed the Share Purchase
Agreement entered into on May 16, 2006 and it has not
issued common stock to the shareholders/registered capital
owners of Bear Technology.  The companies are in the
process of amending the Share Purchase Agreement to
restructure the consideration to be paid by Xinhua China as
well as the dates for closing and issuance of shares, it
said.  

    The original agreement provided for Xinhua China to
acquire all the issued and outstanding shares/registered
capital of Bear Technology in exchange for issuing up to 20
million shares of Xinhua China's common stock, of which 8
million shares were to be issued within 10 business days of
the execution of the Share Purchase Agreement and up to 12
million shares issued within 15 business days of the
completion of an asset valuation report of Bear Technology,
subject to a certain minimum asset valuation and provisions
for reduction of shares to be issued if such minimum asset
valuation is not met.  These terms are being re-evaluated,
Xinhua China said. 

    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.

    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
     Xinhua China Ltd.
     Tel:   [phone] 
     Tel:   [phone]	
     Email: [e-mail]	

     Investor Relations Company:
     Woody Wallace or Tad Gage
     Investor Relations	
     Tel:   [phone]

SOURCE  Xinhua China Ltd.