Business News

XFMedia Announces Divestment to Focus on Sports and Entertainment

Wednesday 31. December 2008 - XFMedia (NASDAQ:XFML), a leading media group in China, today announced the divestment of its Hong Kong based outdoor advertising business, Convey Advertising Company, Ltd. ("Convey"), to Pariya Holdings Limited, a company controlled by the management and original sellers of Convey, for a total purchase price of US$85 million.

Ms. Fredy Bush, XFMedia’s Chief Executive Officer commented, “We are pleased to announce this divestment, which is in line with our strategy to focus on sports and entertainment content and distribution in China as this sector continues to show strong growth opportunities. Additionally, the divestment will improve our liquidity position as we prepare the Company for future growth.” Ms. Bush continued, “Given current market conditions, we are very pleased with the terms of the deal. Looking ahead, we will continue to restructure our businesses to focus on sports and entertainment, which could give rise to material one-time non-cash charges in the fourth quarter of 2008.”