China Housing and Land Development, Inc., a leading developer of residential and commercial properties in the city of Xi'an announced today that on March 9, 2007 it has signed a definitive agreement to acquire Xi'an New Land Development Co. Ltd.

Pursuant to the definitive agreement, China Housing purchased 100 percent equity ownership of New Land for 270 million RMB or approximately $34 million USD. The total purchase price includes the initial cash payments of 62 million RMB, or approximately US$8 million, and the issuance of 10% promissory note of the balance payable before or on January 30, 2009. The acquisition is expected to close 30 days after the completion of the GAAP audit.

As part of the agreement with the Baqiao District Government and prior to any sales, China Housing will be responsible for the installation and maintenance of all basic infrastructures, including water, electricity, and gas supply, and telecommunication and sewer systems. New Land has already spent approximately $8.8 million to date on such initiatives and many of these infrastructure projects are well under way. Once these improvements are completed management expects to begin selling parcels of land by the end of calendar 2007.