XINHUA CHINA LTD.’s Strategic Readjustment

BEIJING, April 21 /PRNewswire-Asia/ — After a lot of market research,
XINHUA CHINA LTD. (OTC Bulletin Board: XHUA) believes that the automotive
market will become one of the largest markets in China within years. The
vehicle markets in China increase by 10% every year. Consequently, the
automotive aftermarkets in China rise by 10% annually too. The automotive
aftermarkets in China are taking shape. At the same time, the demand, such as
regulating the market products, smoothing the market information and improving
the physical distribution of the auto-parts markets from the auto-parts
manufacturers and auto-parts end users, is steadily on the increase. Therefore,
XINHUA CHINA LTD. decides to take part in the auto parts market services of
China.

Core business

1. To formulate a close working relationship with State Bureau of
Technical Supervision as well as trade associations, and to offer all-around
service for the auto-parts manufacturers, garages and car-owners.

2. To establish an auto aftermarket business trading platform in China.
To establish the auto parts product online browsing system and online
transacting security system.

    3. To establish the Auto parts online trading credibility system.
    4. To establish the Auto parts online trading achieving system.

Economic outlook

According to statistics, the auto parts production in China reached 900
billion yuan in 2008 and will increase by 10% every year. Consequently, the
sales volume of auto-parts markets will occupy 10% of the gross product in
2009, which means the sales amount will reach 100 billion yuan. XINHUA CHINA
LTD. will formulate an online business trading platform and reach 5% market
share within three years, 10% market share within five years and 15% market
share within ten years.

    For more information, please contact:

     Alex
     Tel:   +86-10-8447-7275
     Email: xhuachina@gmail.com
     Fax:   +86-10-8447-7277

SOURCE XINHUA CHINA LTD.