Xinhua Finance Media Limited announced unaudited earnings results for the first quarter ended March 31, 2008. Net revenue for the first quarter of 2008 was $36.7 million, up 120% year- over-year from $16.7 million in the first quarter of 2007. The primary reason for quarter-on-quarter sequential decline is the seasonality of the media industry, which historically is impacted in the first quarter by the Chinese New Year holiday. Net loss for the first quarter of 2008 was $8.3 million, down by $20.9 million year-over-year from net income of $12.6 million in the first quarter of 2007. The net income of $12.6 million for first quarter of 2007 included a one-time tax gain of $12.3 million. The primary reasons for the year-on-year decline are the one-time tax gain, increased share based compensation expense, and higher costs to support Sarbanes-Oxley compliance. The primary reasons for the sequential decline in net income are seasonality, increased share based compensation expense, and costs for Sarbanes-Oxley compliance for the first quarter of 2008. Adjusted net income (non-GAAP), defined as net income before one-time items, amortization of intangible assets from acquisitions, share-based compensation expenses and imputed interest, for the first quarter of 2008 was $1.4 million, down 23% year-over-year from $1.9 million in the first quarter of 2007. The primary reasons for year-over-year decline in adjusted net income are increased tax provisions and costs for Sarbanes-Oxley compliance. The primary reasons for sequential decline in adjusted net income are seasonality and costs for Sarbanes-Oxley compliance. The company provided earnings guidance for the second quarter of 2008 and revised up earnings guidance for the full year 2008. The company estimates its net revenue for the second quarter of 2008 will range from $48 million to $50 million. Second quarter adjusted net income per ADS is estimated to range from $0.07 to $0.09 per diluted ADS based on 81.8 million total ADS equivalent average shares outstanding. The company is raising its estimate of net revenue for full year 2008 to range from $195 million to $205 million from previously forecasted range of $190 million to $200 million. Full year adjusted net income per ADS for 2008 is estimated to range from $0.31 to $0.33 per diluted ADS based on 82.7 million total ADS equivalent average shares outstanding.

Xinhua Finance Media Limited announced that it has signed a 3-year contract with a major China auto advertiser for promotion on radio channels in China´s three top cities. Under the contract, the automobile advertiser will take up sectional advertising minutes on Shanghai´s EasyFM 87.9, Beijing´s EasyFM 91.5, and Guangdong´s traffic radio FM107.7. Beijing and Shanghai EasyFM are China´s only bilingual radio channels targeting audience with higher education and income levels. Guangdong Radio FM107.7 is primarily a drive-time radio format aimed at high-income private vehicle owners aged 25 to 48.

Xinhua Finance Media Limited announced that it has launched The Investor Journal, a weekly financial publication. The Chinese language newspaper is headed by Zhao Li, a founder of the Economic Observer in China. The Investor Journal is aimed at sophisticated investors looking for in-depth market research, fundamental analysis and reliable information.