BEIJING, May 19 /PRNewswire-Asia-FirstCall/ --
Xinhua Sports & Entertainment
Limited ("XSEL" or the "Company"; Nasdaq: XSEL), a leading media
group in China, has entered into
an agreement to sell the entirety of its equity interest in two of
its print advertising companies, Beijing JinGuan XinCheng
Advertising Co., Ltd and Beijing Jingshijinguan Co., Ltd, to an
independent, non-affiliated purchaser.
"This transaction will provide the Company with significant
capital which we believe will go a long way towards addressing the
Company's liquidity issues and improving the Company's balance
sheet. It is part of our continued endeavor to reposition the
Company to focus on sports media," said Ms. Fredy Bush, XSEL's CEO. "It is a key part of
that exercise, and will help us to focus on our core platform of
television, Internet, mobile phones and content, which provide a
solid base for expansion in the sports media field."
The transaction is subject to certain closing conditions and is
expected to be completed during the second quarter of 2010.
Financial terms of the transaction were not disclosed.
About XSEL
XSEL is a leading sports and entertainment media company in
China. Catering to a vast audience
of young and upwardly mobile consumers, XSEL is well-positioned in
China with its unique content and
access. Through its key international partnerships, XSEL is able to
offer its target audience the content they demand - premium sports
and quality entertainment. Through its Chinese partnerships, XSEL
is able to deliver this content across a broad range of platforms,
including television, the Internet, mobile phones, cinema,
university campuses and other multimedia assets in China. Along with its in-house advertising
resources, XSEL offers a total solution empowering clients at every
stage of the media process linking advertisers with China's young and upwardly mobile
demographic.
Headquartered in Beijing, the
Company has offices and affiliates in major cities throughout
China including Beijing, Shanghai, Guangzhou, Shenzhen and Hong
Kong. Xinhua Sports &
Entertainment Limited shares are listed on the NASDAQ Global Market
(NASDAQ: XSEL). For more information, please visit
http://www.xsel.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. Statements that are not
historical facts, including statements about XSEL'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
include, but are not limited to, risks outlined in XSEL's filings
with the U.S. Securities and Exchange Commission, including its
annual report on Form -20-F. All information provided in this press
release is as of the date hereof, and XSEL undertakes no duty to
update such information, except as required under applicable
law.
For more information, please contact:
Media Contact
Joy Tsang
XSEL
Tel: +86-21-6113-5999
Email: joy.tsang@xsel.com
IR Contact
Graham Earnshaw
XSEL
Tel: +86-10-8567-6061
Email: graham.earnshaw@xsel.com
Howard Gostfrand
American Capital Ventures
Tel: +1-305-918-7000 toll free
Tel: +1-877-918-0774
Email: info@amcapventures.com
SOURCE Xinhua Sports &
Entertainment Limited