Xinhua Finance to Acquire Chinese Risk Manager Beijing Alpha

March 3, 2006

Xinhua Finance Limited, China’s foremost financial information and media provider, announced that it has signed an agreement to acquire Beijing Alpha Financial Engineering Company, one of the country’s leading developers of financial engineering and risk management systems.

“This acquisition is expected to deepen and broaden Xinhua Finance’s offering by providing comprehensive index services and better investment solutions and tools in China,” said the announcement. “It is the first ever introduction of risk management techniques into index services in China aimed at meeting rising demand for tailor-made and complex services.”

Fredy Bush, Xinhua Finance CEO, commented: “We are pleased to have the addition of Beijing Alpha to the Xinhua Finance family enabling us to provide better investment tools to the markets. This is a pioneering step and market-driven decision to integrate risk management element into the index service in China. We are proud of being innovative and able to continue to set standard in China.”

Beijing Alpha General Manger Cheng Bing stated: “We look forward to working closely with Xinhua Finance’s team. We believe that Beijing Alpha can further enhance the standard and quality of its risk management service and strengthen its sales and marketing capability with the support of Xinhua Finance whose products are all built on the international standard.”

The bulletin notes that Beijing Alpha was founded in 1998 and is led by the financial engineering professionals from the Chinese Academy of Science. It has “established a leading position in China with its risk analytic expertise and in-depth local knowledge. Backed by the first class research team, it has built an impressive clientele, including fund management companies like SYWG BNP Paribas, Boshi, Fuguo, Penghua; banks such as Bank of China and ICBC Beijing Branch; major insurance companies, securities firms, and the National Social Security Fund Council.”

Xenhua said it will “directly acquire 100 percent of the shares of Beijing Alpha Financial Engineering Limited from its shareholders Chen Bing and Ma Yuewen. The purchase price will be paid over a period of three years, in an amount linked to the performance of Beijing Alpha in 2005, 2006, 2007 and 2008. The total consideration is estimated at $2,000,000.”

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