ZST Digital Networks, Inc. Comments on New Regulations for Commercial Vehicles

The new regulations aim to improve safety conditions for drivers employed by road transport enterprises, strengthen supervision of commercial road transport vehicles, and reduce traffic accidents.  As part of the new regulations, relevant commercial transport vehicles, including tour buses, minibuses and vehicles for the transport of hazardous materials, will be required to install and utilize GPS tracking and monitoring systems before December 31, 2011.  The regulations indicate that transport enterprises must install GPS systems that meet the relevant government requirements, and that the GPS systems must be linked to the national commercial vehicles network and control system. The installation of a GPS system will be required for all new commercial vehicles that go into operation from August 1, 2011 in order for those vehicles to receive a road transport permit.  Vehicles that have already received permits but that do not as of yet operate a GPS tracking and monitoring device will be encouraged to have GPS systems installed and linked to the national network and control system.  

Mr. Zhong Bo, Chairman and Chief Executive Officer of ZST, commented, "We believe the new regulations announced by the government will encourage the long-term development of the commercial GPS market in China, and create further opportunity for our growing commercial GPS business segment. Given our focus on commercial road transport enterprises, and the comprehensive capabilities of our GPS tracking and monitoring systems and support services, we believe we stand to benefit directly from the implementation of these new regulations.  We will work closely with the relevant government bodies in Henan province and with our commercial GPS customers as the regulations go into effect to best position ZST Digital for the next phase of growth in the commercial GPS market in China."        

About ZST Digital Networks, Inc.

ZST Digital Networks, Inc. (Nasdaq: ZSTN) is a China-based company, principally engaged in (1) supplying digital and optical network equipment and providing installation services to cable system operators in China and (2) providing GPS location and tracking services to local logistics and transportation companies in China.  The Company has developed a line of IPTV devices that are used to provide bundled cable television, Internet and telephone services to residential and commercial customers.  The Company has assisted in the installation and construction of over 400 local cable networks in more than 90 municipal districts, counties, townships, and enterprises. The Company has also launched a commercial line of vehicle tracking devices utilizing our GPS tracking technologies and support services for transport-related enterprises to track, monitor and optimize their businesses.  For more information about ZST Digital Networks, Inc., please visit www.zstdigital.com/english.  

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