BEIJING, May 22 /Xinhua-PRNewswire-FirstCall/ -- China TransInfo Technology Corp., (OTC Bulletin Board: CTFO), ("China TransInfo" or "the Company"), a leading provider of public transportation information systems technology and comprehensive solutions in the People’s Republic of China (“PRC”), today announced that it has entered into equity transfer agreements to acquire majority ownership of China TranWiseway Information Technology Co., Ltd. (“China TranWiseway”) for RMB 6.5 million (approximately $0.93M) in cash.
China TranWiseway is a high tech enterprise specializing in highway and street traffic monitoring projects. It has significant experience in R&D, consulting, design, and engineering in the transportation information business. China TranWiseway’s main clients include regional and municipal transportation administrative agencies located in over 20 of China’s 31 provinces. Once the acquisition is consummated, China TransInfo will own 70% of China TranWiseway, with the remaining 30% held by Beijing Marine Communication and Navigation Co., a direct subsidiary of China Transportation & Telecommunication Center, which is a state owned institution under the Ministry of Communication.
“China TransInfo’s acquisition of China TranWiseway is a significant milestone in our corporate development. As a traffic surveying company that has a close relationship with the government, China TranWiseway has accumulated rich industry experience and a large contingent of mature and stable customers. We firmly believe these factors will substantially benefit China TransInfo, helping us accelerate our establishment of a nationwide transportation information platform and significantly increasing our market share in the domestic transportation information service market,” said Mr. Shudong Xia, CEO of China TransInfo. “Through the acquisition of China TranWiseway, we will also be able to significantly enlarge the scale of our transportation information database and utilize this new information source to develop more integrated services and products. In addition, the acquisition of China TranWiseway will improve China TransInfo’s corporate image and increase market recognition. We believe China TranWiseway will play an integral role in helping China TransInfo’s become China’s leading domestic transportation information solutions provider.”
About China TransInfo
China TransInfo, through its subsidiary Beijing PKU ChinaFront High Technology Co., Ltd. (“PKU”), is primarily focused on providing transportation information services. The Company aims to become the largest transportation information product and comprehensive solutions provider, as well as the largest integrated transportation information platform and commuter traffic media platform builder and operator in China. China TransInfo is involved in developing multiple applications in transportation, digital city，land and resource filling system based on GIS technologies which is used to service the public sector. In addition, the Company is also developing its transportation system to include ETC technology. The Company is the co-formulator to several transportation technology national standards and has software copyrights to 23 software products. China TransInfo has won 3 of 4 model cases sponsored by the PRC Ministry of Communications. The Company’s affiliation with Peking University, which currently owns 5% of PKU, provides access to the University’s GeoGIS Research Laboratory, including over 30 Ph.D. researchers. As a result, the Company is currently playing a key role in setting the standards for electrified transportation information solutions. For more information please visit the company website at http://www.chinatransinfo.com .
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements". 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. You 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.
