XSEL to Acquire NuCom Online, China's Largest Sports Portal

Company Welcomes New Shareholders; Significantly Increases Online Presence

BEIJING, Dec. 4 /PRNewswire-Asia-FirstCall/ -- Xinhua Sports & Entertainment Limited (Nasdaq: XSEL; "XSEL"), a leading sports and entertainment media company in China, announced today that it has entered into an agreement to acquire NuCom Online Corporation ("NuCom"). NuCom is a leading sports media company which owns China's largest sports portal, NuBB (http://www.nubb.com ). As a result of the transaction, shareholders of NuCom including KPCB China will become shareholders of XSEL.

Launched in August 2005, NuBB provides quality and popular broadband sports content, including live and delayed NBA games and highlights, and has one of the largest online sports communities in China with over 8 million registered users, 1.5 million average daily click-thru of video highlights, and over 15 million monthly unique visitors. The NuBB sports portal is the most advanced and robust sports site in China with functionality that includes fantasy sports, live chat rooms, daily updated sports news and events.

NuCom also currently possesses an internet broadband broadcasting license in China, which allows streaming live content on the internet, and is among only 23 non-government affiliated companies to have attained this license by the State Administration of Radio, Film and Television of China ("SARFT").

Under the terms of the transaction, NuCom is valued at US$27.6 million. XSEL will issue approximately 8.5 million American depositary shares, (or "ADS") valued at US$1.83 per ADS. An additional 6.6 million ADS will be issued only if NuBB achieves certain revenue targets for 2010 and 2011. Management believes NuBB may generate average annual net income of US$2.3 million for the period between 2010 to 2012.

"XSEL is excited to welcome KPCB China as a new shareholder to the Company," said Ms. Fredy Bush, XSEL CEO. "NuBB gives XSEL a large internet presence which greatly enhances our overall sports media platform."

"We are very excited to see the joining of these two companies and look forward to the many new opportunities that will arise as a result," said Tina Ju, Managing Partner of KPCB China. "NuCom will further enhance XSEL's position in China's media industry and will create unparalleled choices for consumers, while also creating long-term value for shareholders of both companies which are consistent with our investment philosophy."

Upon the closing of the transaction, Mr. Allen Hsu will join XSEL as a new independent director of the board. Mr. Allen is Chairman of Pac-Link Management Corporation, a Taiwan-based venture capital firm founded in 1998, which currently manages a portfolio of US$430 million with a focus on IC design, semi-conductor, telecommunication, LED, and clean energy companies. In addition, Mr. Hsu also serves as Deputy Managing Director of the Yulon Group, a leading Taiwanese conglomerate involved in textiles and automobile manufacturing, and is responsible for the Group's business diversification and investment.

Ms. Bush added, "We welcome Mr. Allen Hsu as a new Director. XSEL sees significant synergies between our two organizations with XSEL's ability to sell advertising combined with NuBB's advanced technology, significant traffic and online membership. In addition, we believe adding an e-commerce component such as sports products to a site where there are 8 million registered users represents a considerable opportunity for a new revenue stream in the near future."

Transaction Details

XSEL will issue approximately 17 million common shares to the shareholders of NuCom (equivalent to 8.5 million American depositary shares, or "ADS") and valued at $0.915 per common share, or $1.83 per ADS. An additional 13.2 milli