Xinhua Finance Media Says Lawsuit is Without Merit
May 23 2007 - 9:41AM
PR Newswire (US)
SHANGHAI, China, May 23 /Xinhua-PRNewswire-FirstCall/ -- Xinhua
Finance Media (NASDAQ:XFML) ("XFMedia") today stated that the
lawsuit filed against it on 22 May by an individual who bought 100
shares in its IPO is wholly without merit and that the Company
intends to defend itself vigorously. The Company added that the
allegations in the complaint appear to be premised on factual
errors drawn from a recent press article on the Company. XFMedia
CEO Fredy Bush issued a statement clarifying the following
inaccuracies which have appeared in recent media articles: -- Mr.
Andrew Chang, who has been with Xinhua Finance Limited since 2003,
is XFMedia's CFO, and not, as has been wrongly stated, David Wang.
-- Prior to the IPO XFMedia underwent an intensive due diligence
process, and the prospectus contained all material information as
required by US securities laws. -- Mr. Shelly Singhal took on the
position of CFO for XFMedia in September on a full time basis. He
was not, as has been alleged, working simultaneously for XFMedia
and Bedrock Securities (a broker dealer which he owns but does not
operate). -- The National Association of Securities Dealers
withdrew its cease-and-desist letter from Bedrock Securities on
December 14, 2006, prior to the IPO. -- Mr. Jonathan Weil recently
resigned from Glass Lewis. He submitted his first resignation
letter on May 2nd stating the following: "I'm writing to notify you
formally that I am resigning my positions at Glass Lewis as
managing director and editor of financial research, effective May
16th, in order to pursue other opportunities." On May 18th, one day
prior to the publication of a negative article on XFMedia, Mr. Weil
submitted a revised resignation letter which he circulated to
various media outlets making disparaging comments about the
management and directors of XFMedia and its parent, Xinhua Finance
Limited. Ms Bush added, "The Xinhua Finance business is robust and
growing as evidenced by the firms' recent first quarter results and
upward reforecast announcement on May 15th. The fundamentals of the
businesses are strong and I believe that the recent sell-off of
shares does not reflect the performance of the businesses." About
Xinhua Finance Media Limited Xinhua Finance Media ("XFMedia";
Nasdaq: XFML) is China's leading diversified financial and
entertainment media company targeting high net worth individuals
nationwide. The company reaches its target audience via TV, radio,
newspapers, magazines and other distribution channels. Through its
five synergistic business groups, Advertising, Broadcast, Print,
Production and Research, XFMedia offers a total solution empowering
clients at every stage of the media process and keeping people
connected and entertained. Headquartered in Beijing, the company
has offices and affiliates in major cities of China including
Beijing, Shanghai, Guangzhou, Shenzhen and Hong Kong. For more
information, please visit http://www.xinhuafinancemedia.com/ . Safe
Harbor Statement This announcement contains forward-looking
statements. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates," "confident" and
similar statements. Among other things, quotations from management
in this announcement contain forward-looking statements. XFMedia
may also make written or oral forward-looking statements in its
periodic reports to the U.S. Securities and Exchange Commission on
forms 20-F and 6-K, etc., in its annual report to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Statements that are not historical facts, including statements
about XFMedia's beliefs and expectations, are forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties that could cause actual results to differ materially
from those contained in any forward-looking statements. Potential
risks and uncertainties are risks outlined in XFMedia's filings
with the U.S. Securities and Exchange Commission, including its
registration statement on Form F-1. All information provided in
this press release is as of May 23, 2007, and XFMedia undertakes no
duty to update such information, except as required under
applicable law. For more information, please contact: Joy Tsang
Tel: +86-136-2179-1577 Tel: +852-948-64364 Email: DATASOURCE:
Xinhua Finance Media CONTACT: Joy Tsang, +86-136-2179-1577, or
+852-948-64364, Web site: http://www.xinhuafinancemedia.com/
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