Xinhua Finance Makes Second Payment for Acquisition of Leading Institutional Research Firm, Washington Analysis, LLC

Xinhua Finance Makes Second Payment for Acquisition of Leading Institutional Research Firm, Washington Analysis, LLC

May 02, 2006

    SHANGHAI, China, May 2 /Xinhua-PRNewswire/ -- Xinhua
Finance Limited ("Xinhua Finance") (TSE Mothers:
9399; OTC: XHFNY), China's unchallenged leader in financial
information and media, today announced details of the second
consideration payment to be made to the original
shareholders of Washington Analysis, LLC ("Washington
Analysis") pursuant to the agreement and plan of
merger ("Agreement") signed in July 2005. 

    Pursuant to the Agreement, further purchase
consideration for Washington Analysis will be payable
depending on Washington Analysis' financial performance
during 2005, 2006 and 2007. 

    Xinhua Finance is pleased to announce that Washington
Analysis has reported net income for 2005 of US$2.8
million.  Accordingly, the original shareholders of
Washington Analysis will be entitled to additional cash
consideration of US$2.9 million and will be issued 3,543 of
Xinhua Finance shares pursuant to the Agreement. 
	
    Details of the issuance:
    1. No. of shares issued : 3,543 shares
       Issue price per share: US$821.576 (JPY 93,520).  
       Price is based on average closing share price for
fifteen trading 
       days up to and including 26 April 2006.
    2. Total amount of the issue price : US$2,910,899
    3. Amount to be added to share capital : HK$20 per
share
    4. Date of issuance: May 3, 2006
    5. Use of proceeds: The shares are part of
consideration of the shares of 
       Washington Analysis that were acquired in July
2005.

    About Xinhua Finance Limited
    Xinhua Finance Limited is China's unchallenged leader
in financial information and media, and is listed on the
Mothers board of the Tokyo Stock Exchange (symbol: 9399)
(OTC ADRs: 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 21 news bureaus
and offices in 18 locations across Asia, Australia, North
America and Europe. 

    For more information, please visit
www.xinhuafinance.com . 

    More information:

    Xinhua Finance
     Hong Kong / Shanghai
     Ms. Joy Tsang
     Tel:   [phone],
[phone]
     Email: [e-mail]
                           
    Japan 
     Mr. Sun Jiong
     Tel:   [phone]
     Email: [e-mail]

    Taylor Rafferty (IR Contact)
     Japan 
     Mr. James Hawrylak
     Tel:   [phone]
     Email: [e-mail]

    United States
     Mr. David Leeney
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Xinhua Finance Limited