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CXN/Bio-Tracking Releases Quarterly Filings Continued.

Business Editors

MONTREAL, Quebec--(BUSINESS WIRE)--May 27, 2004

China Xin Network Media Corp. (CXIN:OTCBB) released its quarterly filings for March 31, 2004.

The Company

CHINA XIN NETWORK MEDIA CORPORATION is a Florida-registered corporation. As previously reported in press releases dated November 26, 2003 and December 2, 2003, the registrant, has concluded the acquisition of Montreal (Canada) based Bio-Tracking Security Inc. (Bio-Tracking). Under the terms of the transaction, CXN acquires 100% of the outstanding shares of the Bio- Tracking, in exchange for 100,000,000 shares of CXN. The closing of the transaction occurred December 2, 2003, as a result of which Bio-Tracking is now a wholly owned subsidiary of CXN.

Capital Needs

CXN anticipates that it will be required to raise an additional $4 million to fund the current plan of growth and existing operations through June 30, 2005. The principal source of capital has been equity financing from investors and founders. Meeting the future financing requirements is dependent on access to equity capital markets. CXN may not be able to raise additional equity when required or may have to borrow on terms that may be dilutive to existing shareholders.

Goodwill

In July 2001, the FASB issued Statement No. 141, Business Combinations. and No. 142, Goodwill and Other Intangible Assets. Statement No. 141 supercedes the previous accounting standard on business combinations, Accounting Principles Board Opinion No. 16. and requires that all business combinations initiated after June 30, 2001 must be accounted by the purchase method. Statement No. 141 also changes the requirements for recognizing assets as assets apart from goodwill in business combinations accounted for by the purchase method for which the date of the acquisition is July 1, 2001 or later. Under Statement No. 142, goodwill acquired in a business combination for which the acquisition date is after June 30, 2001, should not be amortized, but should be tested for impairment in accordance for the provisions of this accounting standard.

Goodwill is the result of the acquisition of Bio-Tracking Security Inc. by the registrant on December 2, 2003. The closing price of the shares traded on December 2, 2003 was $0.05. The Goodwill is calculated as the excess of the fairvalue of the acquisition (the purchase method) over its tangible assets.

Results of Operations

 Three Months Ended March 31,

 2004 2003 % Change

Sales General &
 Administrative $50,002 $331,384 -84.9%


CXN has worked diligently to reduce overhead and expenses while building shareholder value. As of March 31, 2004, Sales General and Administrative expenses were $50,002 versus $331,384 for the year-ago period. This represents a reduction of expenses of 84.9%.

 Three Months Ended

 March 31, 2004 December 31, 2003 % Change

Total Liabilities $38,463 $1,345,419 -97.1%


On March 31, 2004 the liabilities of the corporation were reduced 97.1%. The loan payable of $868,579 which represents security for the acquisition of Bio-Tracking was settled for the issuance of shares for the acquisition. As well, shares were issued to 3884368 Canada Inc. as per the agreement dated November 7, 2003 for the settling of debt.

The end result of these transactions, the Shareholders' equity of CXN has increased to $4,962,153 from a deficit of $896,051.

For the complete 10-QSB please go to http://www.sec.gov or http://www.bio-tracking.com
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Publication:Business Wire
Date:May 27, 2004
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