XFMedia to Build Sports and TV Broadcasting Business in China

XFMedia (Nasdaq: XFML), a leading media group in China, announced today that it has entered into a secured convertible loan facility for up to $80 million with affiliates of Patriarch Partners LLC (“Patriarch”), a global investment firm based in New York and currently the second largest shareholder of XFMedia.

Fredy Bush, CEO and Chairman of XFMedia, said the funds will be used to finance XFMedia’s expansion in its broadcast business, with a focus on sports. The money will be drawn down only as needed, and will be used to pay for the already identified acquisitions as they are brought in.

“We are very fortunate to be able to secure a facility for up to $80 million from our long-term seed investor Patriarch. This will allow us to continue pursuing our vision and taking advantage of the opportunities we are seeing in China,” said Ms. Bush.

“The broadcast area in China, and particularly sports, is a high margin business with significant growth potential. We are in a unique position to take advantage of that,” Ms. Bush added. “We are delighted that Patriarch shares our vision and provides its continued support. The increased investment as well as its higher-than-market conversion price is a vote of confidence in both the fundamentals and future prospects of our Company.”

Lynn Tilton, CEO of Patriarch said, “As a major shareholder of XFMedia, we are impressed with the fundamentals of the company and the consistent growth in earnings since last year’s initial public offering. We believe the acquisitions and opportunities that management has identified will foster continued growth. We are especially excited about the new sports based strategy that we believe creates great synergistic potential for the entire platform and which we hope will be inelastic to the current economic turmoil.”

The facility is for a term of four years, and is secured by a pledge of certain television assets of XFMedia. Amounts outstanding are convertible into XFMedia shares after one year at a conversion price of $2.24 per American Depository Share (“ADS”) which represents a 100% premium to Monday’s closing price of $1.21 per ADS. The conversion price will be increased to $2.74 per ADS after the second year, and to $3.24 per ADS after the third year that the facility is outstanding.

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.

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