Xinhua Finance Reports Solid Growth From All Businesses For the First Nine Months of 2006

Xinhua Finance Reports Solid Growth From All Businesses For the First Nine Months of 2006

November 14, 2006

Significant Progress in China Distribution Strategy and Operational Integration

    SHANGHAI, China, Nov. 14 /Xinhua-PRNewswire/ -- Xinhua
Finance (TSE Mothers: 9399; OTC: XHFNY), China's premier
financial information and media service provider, today
announced, under International Financial Reporting
Standards ("IFRS"), the consolidated results were
revenue of US$125.1 million, EBITDA of US$19.7 million and
net income of US$15.8 million for the nine months ending
September 30, 2006, representing increases of 64%, 68% and
227% respectively over the same period last year.  Fully
diluted earnings-per-share (EPS) reached US$18.11, up from
US$7.38 for the nine months ending September 30, 2005. 

    Under IFRS, proforma results, adjusted to exclude
non-cash ESOP expense and one-time items, were EBITDA of
US$24.3 million and net income of US$12.1 million, showing
solid growth of 107% and 149% respectively over prior year
levels.  Proforma IFRS adjusted EBITDA margin was 19% and
net income margin was 10%, as compared to full year
forecasts of 15.4% and 8.3%, respectively. The non-cash
ESOP expense and one-time items are items that were
unforeseen when preparing the Company's forecasts.  The
Company believes these proforma results may be helpful for
understanding underlying operating and financial trends. 
In order to reflect the full year impact of non-cash ESOP
expenses and one-time items to its 2006 projected net
income, the Company has revised its net income forecast
upward to US$18.5 million from US$13.8 million.

    Xinhua Finance CEO Fredy Bush commented, "With the
continued execution of our strategy and successful
integration of new revenue streams, we have achieved
another period of solid top- and bottom- line growth.  Over
the past eight fiscal quarters since our IPO, we have
consistently delivered period after period of stable growth
in line with or exceeding our financial targets. This
established track record of strong financial performance
demonstrates our ability to deliver value-added products
and services to our global markets.  It is also a testament
to management's focused efforts to streamline operations and
tightly control costs, which has translated directly into
significant gains in our bottom line profit and EPS."

    "I am pleased to report that all service lines are
performing well while we continue our march along our key
strategic initiatives.  As the China distribution strategy
takes hold and the Distribution service line begins to
stand on its own, we expect to see a further multiplying
effect through our core service lines, as the generation of
additional distribution channels drives greater value from
our proprietary products and services.  By all strategic,
operational and financial measures, this has been another
very successful quarter for Xinhua Finance." 

    During the third quarter, Xinhua Finance further
expanded the robustness of its core product offerings.  As
of the end of October, $19.4 billion in exchange-traded
funds track the Xinhua FTSE Index Series worldwide. Several
short-term bond ratings were issued during the period,
including those for two leading Chinese pharmaceutical
companies.  In the period several significant operational
milestones were attained including: Financial News reported
its second-highest month of sales, Investor Relations made
further inroads into the Asian market by signing ongoing
advisory agreements with major Asian clients, and Stone
& McCarthy Research Associates opened its Beijing
office. 

    Xinhua Finance also strengthened the scope and impact
of its China distribution platform.  By leveraging its
proprietary content, the Company created a special
"Finance" section for distribution in the Beijing
Review and Economic Observer, both of which are prominent
media sources in China.  The Company also established an
integrated financial advertising and marketing platform
across magazine, newspaper, radio and TV to better serve
its customers and advertisers. 

    At the same time, the Company remains focused on
continuously enhancing the efficiency of its operations. 
With such recent initiatives as the initiation of the
Shared Service Center to provide back office financial
processes for multiple Service Lines centrally, Xinhua
Finance is maximizing the value of its growing and
synergistic businesses. 


    First Nine Months 2006 vs. First Nine Months 2005
(IFRS) - unit: USD mil.

                            1st 9 Mo. 2006      1st 9 Mo.
2005         Change      
    Revenue                      125.1               76.5  
             64 %
    EBITDA                        19.7               11.8  
             68 %
    Net Income                    15.8                4.8  
            227 %

     NOTE: The 2006 projected net income under IFRS is
revised upward to 
           US$18.5 million from US$13.8 million to reflect
the full year 
           impact of non-cash ESOP expenses and one-time
items.


    First Nine Month 2006 vs. First Nine Months 2005
(JGAAP) - unit: USD mil.

                           1st 9 Mo. 2006      1st 9 Mo.
2005          Change      
    Revenue                    125.1                 76.5  
             64 %
    EBITDA                      20.1                 11.6  
             73 %
    Net Income                  10.3                 -1.0  
             N/A 

     NOTE: The 2006 projected net income under JGAAP is
revised upward to 
           US$10.5 million from US$1.1 million to reflect
the full year impact 
           of non-cash ESOP expenses and one-time items.

    Notes to Editors

    About Xinhua Finance Limited 

    Xinhua Finance Limited is China's premier financial
information and media service provider and is listed on the
Mothers board of the Tokyo Stock Exchange (symbol: 9399)
(OTC ADR: 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 20 news bureaus
and offices in 19 locations across Asia, Australia, North
America and Europe.  

    For more information, please visit
http://www.xinhuafinance.com . 

    For more information, please contact: 

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

     Japan 
     Mr. Sun Jiong
     Tel:   [phone]
     Email: [e-mail]

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

     United States
     Ms. Ishviene Arora
     Tel:   [phone]
     Email: [e-mail]

     Europe
     Mr. John Dudzinsky
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Xinhua Finance Limited