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China Fire Awarded $10 Million Contract with China Nuclear Power

2010-07-06 17:12 1327

BEIJING, July 6 /PRNewswire-Asia/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG) ("China Fire" or "the Company"), a leading total solution provider of industrial fire protection systems in China, today announced that the Company has been awarded a contract for Fire Detection Systems with China Nuclear Power Engineering Co., Ltd. ("CNPEC"), valued at approximately $10 million, the largest amount contracted from CNPEC to date.

CNPEC, headquartered in Shenzhen, Guangdong Province, is a subsidiary of China Guangdong Nuclear Power Group ("CGNPG"), the largest of the three nuclear power companies in China. CGNPG is in the process of constructing five new power-generating projects, which will have a total installed generating capacity of approximately 21,000 MWe. Among these projects is the Taishan Nuclear Power Plant (the "Taishan Plant").

The Taishan Plant, located in Taishan City, Guangdong Province, began its official construction on December 21, 2009. It is the first nuclear power station in China to be adopting the latest Evolutionary Power Reactor ("EPR") Technology. The overall plan is to build four sets of nuclear power units, with a single unit within this project targeting capacity of 1,750 MWe, the largest single-unit output in the world.

EPR technology is a third-generation nuclear power technology designed and developed in Europe with a main design objective of stronger safety and enhanced economic competitiveness compared to previous nuclear technologies. According to the revised Chinese Medium- and Long-term Development Plan for the Nuclear Power Industry (2005-2020), China aims to have an installed nuclear power capacity of 70-80 gigawatts by 2020, where most nuclear power units will adopt third generation technology.

"We are very pleased with our record contract win in the nuclear sector, which not only demonstrates our success in the fast-growing nuclear vertical but also further validates our continued efforts to diversify our revenue mix," commented Mr. Brian Lin, chief executive officer of China Fire. "As nuclear power plants require use of the most sophisticated fire protection products, this high-profile contract win highlights our leading position in China's fire protection industry, as well as our excellent value proposition and strong track record."

China Fire is contracted to supply its Fire Detection Systems to Nuclear Island ("NI"), Conventional Island ("CI") and Balance of Plant ("BOP"), three key sections of the Taishan Plant. China Fire will be fully responsible for all aspects of supplying the Fire Detection Systems, from design and manufacturing to installation and maintenance. Currently, the Company is also in the process of bidding on the corresponding fire-extinguishing contract for the Taishan Plant.

For the NI portion of the contract, China Fire, together with the Company's business partner, will serve as a fire-detection system designer and equipment provider. This part of the contract is valued at approximately $8 million and expected to be completed within the next three years.

Under the CI and BOP portions of the contract, China Fire will serve as a fire-detection equipment provider for various fire-detection products with a total value of approximately $2 million. China Fire will provide

fire-detection products that include the Company's proprietary recoverable rate-of-rise temperature linear heat detectors, infrared flame detectors, and special infrared flame detectors for explosion-hazard areas. The project is expected to be completed within the next three years.

"CNPEC has been our customer since 2008, and we believe CFSG was awarded this contract win based on CFSG's proven capabilities of delivering the industry's best total fire protection solution and our deepening mutual relationship of trust and quality with CNPEC. The third generation nuclear power technology such as EPR technology is set to become the mainstream technology used in China over the coming years, so we are particularly pleased to have established a solid foothold in the market. With our strong brand and technical leadership, we feel we are well-positioned to capture other new business opportunities that will arise from China government's implementation of the $66 billion nuclear power development plan," concluded Mr. Brian Lin.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG), through its wholly owned subsidiary, Sureland Industrial Fire Safety Limited ("Sureland"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacturing, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, power, petrochemical and transportation industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has a comprehensive portfolio of patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 430 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

For more information, please contact:

China Fire & Security Group, Inc.

Amy Gao, Investor Relations

Tel: +86-10-8441-7400

Email: ir@chinafiresecurity.com

ICR, Inc.

In China:

Michael Tieu

Tel: +86-10-6599-7960

Email: michael.tieu@icrinc.com

In the U.S.:

Bill Zima

Tel: +1-203-682-8200

Email: bill.zima@icrinc.com

Source: China Fire & Security Group, Inc.
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