CEO Ann Yu Discusses Marketing Initiatives, Expanded Business Plan, Growth Strategy in 2009 NEW YORK and SHENZHEN, China, Feb. 18 /PRNewswire-Asia-FirstCall/ -- China Finance, Inc. (OTC Bulletin Board: CHFI; the "Company"), a provider of financial support and services for China's large and rapidly expanding class of small and medium enterprises ("SMEs"), today announced the release of a letter to shareholders from Ms. Ann Yu, Chief Executive Officer. Fellow Shareholders: 2009 will be an important year for China Finance and its shareholders. We expect to see the completion of several significant initiatives in addition to our traditional business of providing financial services to some of the fastest growing private companies in China. China Finance is in the process of looking at several investment acquisition opportunities where we will seek to use our expertise to make direct investments in companies developing quality businesses with significant potential. We view this as a logical extension of our business plan and have embarked on this expansion to further maximize our revenues, and of course, shareholder value. To this end, management has attended several industry meetings over the past few months both to look for opportunities as well as market the services of China Finance. Through these meetings and other outreach efforts, we believe that we have established strong and promising contacts with the potential to lead to future business. These include: -- Response to US's Subprime Crisis: I delivered a speech on the funding challenges confronting Chinese companies to a large group of Asian entrepreneurs. -- The Matching and Promoting Conference of China (western) Hi-tech Industry and VC Capital 2009: Management interacted with a group of 1,000 people including investors, experts and over 100 media representatives on topics such as utilizing international capital markets, particularly in Western China. -- Peak HR Seminar: I delivered a speech to national and international Human Resources professionals on improving employee skills, retention of talent and the latest global techniques in HR management. We recently developed our most important initiatives for 2009, which will focus on the following five planks of our business model: -- Continue to focus on providing financial support and services for SMEs -- Identify and provide financing to target companies -- Utilize CHFI's expertise to educate and help guide growing companies -- Fund strategic investments that have the potential to become public in the US -- Make expansion funds available to established business China Finance is reviewing several potential companies that appear to meet our criteria for investment, which includes strong growth and revenue potential. We intend to focus on companies currently delivering $30 million or more in revenue. These companies could be in virtually any sector. I thank you for your support and interest and look forward to bringing you regular details of our initiatives in 2009 and beyond. For the latest information, kindly bookmark our website: http://www.chinafinanceincorporation.com/ Sincerely, Ann Yu Chief Executive Officer China Finance, Inc. ABOUT CHINA FINANCE, INC. China Finance, Inc. provides financial support and services -- primarily in the form of surety guarantees, loan guarantees, or short-term loans -- to privately owned SME's when they seek access to capital or to be acquired by a United States reporting company. China Finance provides its services through its wholly owned indirect subsidiary, Shenzhen Hua Yin Guaranty and Investment Limited Liability Corporation, which is located in the financial district of Shenzhen, China. The Company may also directly invest in the equity of SME's through its wholly owned subsidiary, Value Global International Limited, a British Virgin Islands company. FORWARD-LOOKING STATEMENTS The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements relating to expected operating results and future performance, as well as future events and developments, are forward-looking statements and are not historical in nature. Generally, the words "looking forward", "believe", "expect", "intend", "estimate", "anticipate", "likely", "project", "may", "will" and similar expressions identify forward-looking statements. The Company warns that any forward-looking statements in this release involve numerous risks and uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by any forward-looking statement. These risks and uncertainties include, but are not limited to, the risk that the value of our portfolio securities will decline resulting in a decline in the value of the Company's stock, we might not achieve our anticipated development milestones, the market for our services will not grow as expected and we might not achieve our expectations. If these or other significant risks and uncertainties occur, or if our underlying assumptions prove inaccurate, our actual results could differ materially. While the Company is an operating company, the Company is registered as a "closed-end" investment company under the Investment Company Act of 1940, as amended, and is subject to the types of investment risks that effect investment companies. You are urged to consider the operating and investment objectives and strategies, expenses and history of the Company, along with all risks and uncertainties noted above, and to review the risk factors and financial information about the Company available in the Company's registration statement on Form N-2, and the Company's Annual and Semi-Annual Reports and other regulatory filings accessible on the SEC's website at http://www.sec.gov/. In light of the uncertainty inherent in forward-looking statements, you should not consider their inclusion to be a representation that such forward-looking matters will be achieved. Moreover, pursuant to the Private Securities Litigation Reform Act of 1995, such statements speak only as of the date they were made, and the company undertakes no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise. Past performance is no guarantee of future results, and like all investments, you may lose money on an investment in the Company's stock. For more information, please contact: China Finance, Inc. Wei Wei Tel: +1-212-823-0534 Email: DATASOURCE: China Finance, Inc. CONTACT: Wei Wei, China Finance, Inc. at +1-212-823-0534 or Web site: http://www.chinafinanceincorporation.com/

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