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copied it:Xinhua China Subsidiary and Reader's Digest Unit Reach Licensing Agreement for China

BEIJING , Xinhua China, Ltd.
(OTC Bulletin Board: XHUA) announced today its subsidiary, Beijing Boheng
Investment + Management Co., Ltd., has executed a two-year licensing agreement
with Hong Kong-based Reader's Digest Association Far East Limited, a unit of
Reader's Digest Association, Inc.The agreement grants Beijing Boheng an
exclusive license for the publication in simplified Chinese characters,
marketing and sale of "Bilingual Series volumes one through five" in the
People's Republic of China.There are terms for renewal should both parties
wish. The agreement will be effective when Beijing Boheng makes its first non-
returnable but fully recoupable advance payment of $4,270 (after-tax) within
30 days of the contract signing.
Under the agreement, Beijing Boheng assumes responsibility for the
translation and distribution of the covered works while cooperating with
Chinese publishers as approved by Reader's Digest and in order to be in
compliance with Chinese law. The agreement permits format re-design to meet
the needs of the Chinese market , also as approved by Reader's Digest.Beijing
Boheng will pay Reader's Digest Far East royalties on all copies sold in
China. The amount of the royalty was not announced, however, Beijing Boheng
did report that the original royalty on the first edition would rise slightly
for any additional editions.
A small advance is due to be paid to Reader's Digest prior to publishing
each volume.Royalties are to be settled based upon six months intervals. The
first publications of the works must be completed within 12 months of the
signing of the agreement.The initial print run shall be at least 8,000 copies
at a selling price no lower that RMB$25.The cover and copyright page of each
volume will indicate the Reader's Digest name, the agreement specifies.
"We believe this agreement is an important first step for Xinhua China in
its goal to license works in cooperation with major publishers .We are
extremely pleased that Reader's Digest Far East is our first partner in this
endeavor," said Mr. Xianping Wang, Xinhua China president."Reader's Digest
publications are known throughout the world for their quality and universal
appeal. "
"Beijing Boheng has the extensive experience to arrange the production
while navigating the complexities of Chinese government regulations covering
approval of books and other materials for publication. Further, through our
subsidiary, Xinhua Publications Circulation and Distribution Co., Ltd., we
hold a national license for the distribution of books and other publications
in China. That gives us the ability to distribute publications like those
covered in the agreement to a network of bookstores throughout China. We are
uniquely able to ensure that the items this agreement covers are made
available to the maximum number of Chinese consumers. We look forward to a
long and productive association with The Reader's Digest organization," he
concluded.

About Reader's Digest Association Far East
Reader's Digest Association Far East is a subsidiary of Reader's Digest
Association , Inc. Since 1922, The Reader's Digest Association, Inc. has grown
to become one of the world's preeminent publishers and direct marketers.
Reader's Digest, the largest-selling magazine in the world, now appears in 48
editions and 19 languages. It is sold in more than 60 countries.The company
also reaches millions of readers through its special-interest magazines;
books, including the popular Select Editions series and offerings in the
do-it-yourself, cooking , health, gardening and children's titles; music from
Beethoven to Ella Fitzgerald to today's pop divas; and videos and audio books.
These are marketed through an increasing range of channels, including direct
mail, display marketing, direct response television, catalogs, retail and the
Internet .

About Xinhua China
Xinhua China Ltd. is a US publicly traded holding company that, through
one of its subsidiaries, Xinhua Publications Circulation + Distribution Co.,
Ltd., holds a national license for distribution of books and other
publications in China. Xinhua China is involved in forming strategy, operating
and financing for Xinhua C + D. Xinhua China also interfaces with the
worldwide financial communities to inform them of the combined companies'
goals and developments . For more information, please visit its website at http://www.xinhuachina .com.cn .