XFML Xinhua Finance Media Limited ADS (MM)

BEIJING, June 5 /Xinhua-PRNewswire/ -- XFMedia (NASDAQ:XFML), a leading media group in China, announced that its Production Group has signed a contract with Digital Media Group ("DMG"), a leading metro passenger information system provider around the globe and the largest metro screen operator in China, to provide packaging services for DMG's digital channels, its programming, and for the company itself. Under the contract, XFMedia's Production Group will develop and produce the branding and image of DMG's digital channels, including the creation of channel identity elements such as channel logos, animation and on-screen logos. Program packaging involves trailers and bumpers, while company-specific packaging would entail promotional videos for DMG and for its advertising sales. Trailers are short advertisements for a program or short film strips that are shown at the beginning and end of a program, and bumpers are short graphics broadcasted for a few seconds between programs that identify and self-advertise the channel. DMG currently operates over 10,600 LCDs (Liquid Crystal Display) and PDPs (Plasma Display Panel) located at metro station platforms and within carriages on ten metro lines in seven cities -- Shanghai, Beijing, Shenzhen, Nanjing, Tianjin, Chongqing and Hong Kong. The screens run up to 16 hours per day on the ten subway lines which together carry 30 million passengers every week. The screens on station platforms and within carriages provide regular news updates, entertainment clips, sports competition excerpts and comedy pieces tailor-made for local audiences along with advertisements. About one-third of the area of screens on station platforms are devoted to must-read information about subway services including train arrival and departure times. "We are delighted to extend our well-known and award-winning packaging services from traditional in-home television channels to new, digital outdoor media," said Ms Fredy Bush, CEO of XFMedia. "We see significant growth potential and opportunities in outdoor advertising and we are happy to participate in this area of the media business by providing content and production services in addition to the outdoor media assets that we directly manage ourselves. " According to the estimate of Group M, a global research company specialized in media industry, the advertising dollars spent on China's outdoor media would continue to increase. It was estimated that the ad spend on outdoor media in 2007 was about US$1.4 billion, up 27.3% year over year, with an average annual growth rate of 24.7% from 2005 to 2007. XFMedia produces a diverse array of quality programming, animated shows and television drama series, as well as special effects and TV channel packaging services. Its channel packaging deliverables have won various significant awards of the industry. It has provided packaging services to a number of China Central Television (CCTV) channels, including the branding design of international channel CCTV9 and the re-branding of sports channel CCTV5 as CCTV's Olympics Channel. Other clients served in 2007 included Anhui Satellite TV, Shanxi Satellite TV, Jiangsu Satellite TV, Tianjin Satellite TV, Xinjiang Satellite TV, Shanghai Media Group's Channel Young, and other significant terrestrial TV channels. XFMedia operates over 3,000 outdoor media assets, about 2,000 of which it has the exclusive advertising rights, covering Dongguan, Shenzhen, Guangzhou and Foshan in Guangdong province, Hong Kong and Macau in the south, and Beijing and Tianjin in the north. The assets include traditional outdoor billboards, LED and LCD boards and others. The Company also offers advertising clients an extensive network of billboards, including hundreds of campus billboards in Shanghai universities and 2,000 outdoor billboards in the capital city of Beijing. About Xinhua Finance Media Xinhua Finance Media ("XFMedia"; Nasdaq: XFML) is a leading media group in China with nationwide access to the upwardly mobile demographic. Through its synergistic business groups, Broadcast, Print and Advertising, XFMedia offers a total solution empowering clients at every stage of the media process and connecting them with their target audience. Its unique platform covers a wide range of media assets, including television, radio, newspaper, magazine, outdoor, online and other media assets. Headquartered in Beijing, the company has offices and affiliates in major cities of China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For more information, please visit http://www.xinhuafinancemedia.com/ . Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, quotations from management in this announcement contain forward-looking statements. Statements that are not historical facts, including statements about XFMedia's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statements. Potential risks and uncertainties include, but are not limited to, risks outlined in XFMedia's filings with the U.S. Securities and Exchange Commission, including its registration statement on Form F-1 and annual report on 20-F. All information provided in this press release is as of the date hereof, and XFMedia undertakes no duty to update such information, except as required under applicable law. For more information, please contact: Xinhua Finance Media Joy Tsang Tel: +86-21-6113-5999 or +86-136-2179-1577 Email: DATASOURCE: Xinhua Finance Media CONTACT: Xinhua Finance Media - Joy Tsang, +86-21-6113-5999 or +86-136- 2179-1577, or Web Site: http://www.xinhuafinancemedia.com/

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