Xinhua Finance Invests in Leading Provider of Independent Investment Research and Proxy Advisory and Voting Services

SHANGHAI, China and SAN FRANCISCO, Aug. 9 /Xinhua-PRNewswire/ -- Xinhua Finance (TSE Mothers: 9399; OTC: XHFNY), China's unchallenged leader in financial information and media, and Glass, Lewis & Co., LLC, a leading provider of investment research and global proxy advisory and voting services, today announced that Xinhua Finance has purchased a 19.9% equity stake in Glass, Lewis & Co., LLC ("Glass Lewis").

The investment further advances Xinhua Finance's mission of bringing transparency and corporate governance to China and of introducing essential products and services that facilitate investment in China. The investment from Xinhua Finance -- and the ongoing business relationship -- will enhance Glass Lewis' global presence, its capabilities in emerging markets and the firm's dedication to providing superior services to institutional investors globally.

Founded in 2003, Glass Lewis helps investors make more informed investment and proxy voting decisions by identifying business, legal, governance and financial statement risk at public companies. Glass Lewis also facilitates proxy voting by institutional investors with the most advanced and reliable proxy voting platform in the industry. Headquartered in San Francisco, with offices in New York, London, Tokyo and Denver, Glass Lewis serves many of the world's largest and most respected institutional money managers, pension funds, mutual funds and hedge funds. Glass Lewis' clients collectively manage more than $11 trillion.

"We see demand for the services Glass Lewis provides, as foreign investment in China's public companies is increasing dramatically through the Qualified Foreign Institutional Investor mandates. We expect we will also be able to facilitate Glass Lewis' expansion into the China market," said Fredy Bush, Chief Executive Officer of Xinhua Finance.

Bush added, "Global investors are adding Chinese companies to their portfolios. China's public companies have complicated shareholding structures -- including State-owned shares, Legal Person shares and Free Float shares -- which can make the voting process for a foreign investor very complicated. Providing global institutions with research and voting advice on Chinese public companies is a significant opportunity for Xinhua Finance and Glass Lewis. Once again, Xinhua Finance is taking first-mover advantage in a service sector that is increasingly important to large investors while bringing international standards to the China market."

"We are excited to partner with such a highly respected financial information provider and believe our current and future clients will benefit from the association and global reach of Xinhua Finance," said Greg Taxin, Chief Executive Officer of Glass Lewis. "Moreover, everyone at Glass Lewis believes the Chinese capital markets will continue to grow at a rapid pace and investors inside and outside of China will have a strong appetite for objective, professional insight into the business, legal, corporate governance and financial statement risk at Chinese companies."

The relationship will provide Glass Lewis and its institutional investor clients with access to the extensive resources of Xinhua Finance, including the analysis capability of various news units and the comprehensive database of business and financial data on global publicly-listed companies powered by its subsidiary, Mergent.

"Glass Lewis' expertise and methodology complement as well as leverage our existing resources across several of our services lines," said Dan Connell, Chief Operating Officer of Xinhua Finance. "Working together, we believe we can strengthen the information infrastructure that Xinhua Finance has already built both inside and outside of China, and further enhance our strategy to empower investors to execute high-value decisions with confidence and clarity."

  Notes to Editors

  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 20 news bureaus and offices in 19 locations across Asia, Australia, North America and Europe.

For more information, please visit http://www.xinhuafinance.com/ . About Glass, Lewis & Co., LLC

Glass, Lewis & Co, LLC (Glass Lewis) is a leading investment research and global proxy advisory and voting services firm, serving institutions that collectively manage more than $11 trillion. Glass Lewis helps institutional investors make more informed investment and proxy voting decisions by identifying business, legal, governance and financial statement risk at more than 13,000 companies worldwide, including more than 2000 companies in Asia. Founded in 2003, Glass Lewis is headquartered in San Francisco with offices in New York, London, Tokyo and Denver.

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

This is a press release to the public and should not be relied on as information to make an investment decision by any investor. Investors should read the Company's Annual Securities Report for the year ended 2005 and consider the risk factors together with other information contained therein when making an investment decision. This press release contains some forward-looking statements that involve a number of risks and uncertainties. A number of factors could cause actual results, performance, achievements of the Company or industries in which it operates to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

  More information:

  Xinhua Finance
  Hong Kong / Shanghai
   Ms. Joy Tsang
   Tel:   +852-3196-3983, +852-9486-4364, +86-21-6113-5999
   Email: joy.tsang@xinhuafinance.com

  Japan
   Mr. Sun Jiong
   Tel:   +81-3-3221-9500
   Email: jsun@xinhuafinance.com

  Glass, Lewis & Co.
   Bayley Diamond
   Tel:   +1-415-738-4115
   Email: bdiamond@glasslewis.com

  Taylor Rafferty (IR Contact)
  Japan
   Mr. James Hawrylak
   Tel:   +81-3-5733-2621
   Email: James.hawrylak@taylor-rafferty.com

  United States
   Ms. Ishviene Arora
   Tel:   +1-212-889-4350
   Email: ishviene.arora@taylor-rafferty.com

  Europe
   Mr. John Dudzinsky
   Tel:   +44-20-7614-2900
   Email: John.Dudzinsky@taylor-rafferty.co.uk