SHENZHEN, China, Aug. 5 /Xinhua-PRNewswire-FirstCall/ -- China Information Security Technology, Inc., (Nasdaq: CPBY) ("China Information Security," "CIST" or the "Company"), a leading provider of Information Security and 3S (Geographic Information Systems -- GIS, Global Positioning Systems -- GPS and Remote Sensing -- RS) services in China, today announced that the Company has been awarded a contract to construct the Shenzhen Residence Card Information Management System Phase II Project, with a total contract value of $7.0 million. The contract is estimated to be completed by the end of 2008.
The Shenzhen Residence Card Information Management System ("SRCIMS") is designed to form an integrated information sharing platform to facilitate the management of different social functions by the Shenzhen Municipal Government, including public security, social welfare, education, industry and commerce, labor and house rental service management. The Company began construction of the SRCIMS Phase I project and beta-test roll out in Shenzhen’s Yantian District on July 2007, and successfully completed the project in March 2008. Due to the positive feedback received by the government in connection with the Company’s SRCIMS Phase I project, the government has decided to roll out the residence card program throughout Shenzhen, with Phase II beginning August 1, 2008. For Phase II, China Information Security will expand the city’s current database storage capacity and other system infrastructure to provide robust support for approximately 5 million residence cards. Additional phases are expected to follow, pending successful completion of the Phase II roll-out. The current roll-out plan is to support approximately 12 million residence card holders in the next few years.
Shenzhen is a large and developed city with millions of migrant workers and the system will be able to provide solid data to support government decisions on social management and public services. The residence card system is expected to benefit migrant workers, by giving them access to the same services enjoyed by permanent residents. The system will efficiently provide them with information regarding social welfare, employment, education, housing and international travel, and this information will be segmented and shared across departments. Obtaining the Shenzhen residence card will be voluntary for Shenzhen residents, but only holders of the card will be entitled to a range of free public services, including low-cost housing and free education for their children in Shenzhen. Migrant workers will also need to obtain the residence card in order to obtain rental housing in Shenzhen.
"We are very pleased to have won the SRCIMS Phase II Project," said Mr. Jiang Huai Lin, the Company’s CEO. "We expect that Project II will serve as a model for large scale city-wide rollouts and will perfectly position us for other follow-on opportunities should the residence card program be extended to other cities across China."
About China Information Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Information Security is focused on the development and implementation of large scale, high-tech information security and 3S (Geographic Information Systems - GIS, Global Positioning Systems - GPS and Remote Sensing - RS) related projects. The Company provides a broad portfolio of fully integrated solutions and services, including Information Security (First Responder Coordination Platform, Intelligent Border Control System and Residence Card Information Management System), 3S and Product Sales and Services. Through its exclusive contractual arrangement with iASPEC Software Company Limited (iASPEC), China Information Security has the licenses to numerous registered and copyrighted software applications in China. In addition, iASPEC is considered the Company’s variable interest entity, and its financial data and information is consolidated into the Company’s accounts. To learn more about the Company, please visit the corporate website at http://www.chinacpby.com .
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the significance of the contract win of the Shenzhen Residence Card Information Management System Phase II project and the Company’s ability to take advantage of other follow-on opportunities; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
For more information, please contact:
Company Contact:
Mr. Michael Lin
Vice President, Investor Relations
China Information Security Technology, Inc.
Tel: +1-949-743-0868
Email: mlin@chinacpby.com
Web: http://www.chinacpby.com
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Investor Relations
Tel: +1-646-213-1915 (NY office)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgir.com
