NEW YORK, NY -- (MARKET WIRE) -- 06/08/07 -- Abraham Fruchter & Twersky LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of investors who acquired Xinhua Finance Media Ltd. (NASDAQ: XFML) ("Xinhua") American Depositary Shares ("ADSs") pursuant to the Company's false and misleading Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with its March 8, 2007 initial public offering ("IPO").

The complaint charges Xinhua and certain of its officers and directors with violations of the Securities Act of 1933. Xinhua is a diversified media company in China.

The complaint alleges that on March 8, 2007, Xinhua accomplished its IPO of 23.07 million ADSs, representing 46.15 million common shares, at $13.00 per ADS (including 1.5 million shares sold by Xinhua's Chairman and Chief Executive Officer, Fredy Bush) for net proceeds of $300 million, pursuant to the Registration Statement. Due to defendants' positive but false statements following the IPO, by May 15, 2007, the stock was trading around $12.00 per share.

Then on May 21, 2007, Barron's published an article on Xinhua disclosing that the Registration Statement for the IPO failed to disclose that Xinhua's Chief Financial Officer ("CFO") was simultaneously the Company's CFO and an investment banker and stockbroker who ran a securities firm that had been under regulatory scrutiny in the past year.

On this news, Xinhua's stock price collapsed from $10.79 per share on May 17, 2007 to close at $8.76 per share on May 21, 2007, on unusually high volume.

Plaintiff is represented by Abraham Fruchter & Twersky LLP, which has expertise in prosecuting investor class actions. If you purchased or otherwise acquired Xinhua ADSs pursuant to the Company's false and misleading Registration Statement issued in connection with its March 8, 2007 IPO, you may, no later than July 23, 2007, request that the Court appoint you as lead plaintiff. If you wish to serve as lead plaintiff, you must meet certain legal requirements set forth in the applicable law and file appropriate papers with the Court. You do not need to seek appointment as a lead plaintiff in order to share in any recovery. Under certain circumstances, one or more Class members may together serve as lead plaintiff. You may retain Abraham Fruchter & Twersky LLP, or other counsel of your choice, to serve as your counsel in this action or you may choose to do nothing and remain an absent class member.

If you have any questions concerning this case or your rights or interests
with respect to this matter, please contact plaintiff's counsel:
Jack Fruchter, Esq.
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Larry Levit, Esq.
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Abraham Fruchter & Twersky LLP
One Penn Plaza, Suite 2805
New York, New York 10119
(212) 279-5050
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