-Implementing New Communications System for Shenzhen Public Security System-
SHENZHEN, China, Sept. 8 /PRNewswire-Asia/ -- China Information Security Technology, Inc., (Nasdaq: CPBY) ("China Information Security," "CIST" or the "Company"), a leading total solutions provider of digital security, geographic and hospital information systems in China, today announced that the Company has been awarded an $11 million contract for Phase I of the Shenzhen Emergency Command Digital Trunking Mobile Communications System Project (the "Project"). The Company anticipates completing this contract within the next 12 months and will recognize revenue over that period of time.
According to the contract, CIST will serve as general contractor and systems integrator for the Project and will construct an emergency response communications system based on EADS Secure Network's TETRA (Terrestrial Trunked Radio) two-way transceiver technology. The Shenzhen Public Security Bureau's ("SPSB") previous analog system was limited to one speaker per channel. TETRA's safe, fast and reliable wireless digital transmission on the other hand allows for multiple, simultaneous one-to-one or one-to-many conversations. In addition, the Project's secured network will be directly connected wirelessly to that of the Shenzhen Police and integrated with the city's PGIS (police-use geographic information system) and first responder system, both built by CIST. The Project will enable synchronized, integrated network management among different sub-systems used by various emergency responder agencies, including police, traffic, fire, health, and others. As a result, the Project's enhanced system should greatly improve command, coordination, and response of municipal emergency services, ranging from day-to-day police activities to large-scale special events or city-wide emergencies. Going forward, the system may be expanded to cover other government agencies and industry applications such as metro transportation city management and aviation in Shenzhen City.
Mr. Jiang Huai Lin, Chairman and CEO of CIST, commented, "We are very excited about this large contract win from the Shenzhen Public Security Bureau, as this project marks the beginning of integrating our PGIS systems with telecommunication networks, which raises the technological bar even higher and has an attractive new market. Our proven success with mission-critical applications, unmatched large-scale deployment capabilities, and integrated offering clearly differentiated CIST from other bidders. We are confident that we will win the remaining $19 million of the Project's total estimated value of $30 million and will complete the entire Project prior to the opening of the 2011 Shenzhen Universidad. Since this is the pilot project in China, our successful implementation will also serve as a live demonstration for similar systems that are expected to be implemented in other major cities throughout China. We estimate this eventual nationwide rollout can create approximately $450 million in new market opportunities for CIST. This contract win further demonstrates our strategy of gaining first mover advantage in Guangdong province, which is a technological leader among provinces/regions in China."
Mr. Lin continued, "We are also very excited about our cooperation with EADS Secure Networks. We believe they were impressed with our technological strength, state-secret level certifications, and proven brand. This cooperation should further solidify CIST's industry leadership and competitive advantages, which can further drive CIST's business expansion nationally."
About China Information Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Information Security Technology, Inc. ("CIST" or the "Company") headquartered in Shenzhen, China ("PRC"), is a leading application software developer, systems integrator and full-service Geographic Information Systems ("GIS") solutions provider to the public security and civil-use markets in China, dedicated to the use of information technology to improve public safety and information management. Its main business lines range from digital information security, to GIS, and digital hospital information systems. The Company provides a broad portfolio of fully integrated solutions and services, including its First Responder Coordination Platform, Intelligent Border Control System, Residence Card Information Management System, Police- and Civil-use GIS products, and Digital Hospital Information System, to serve the growing demand for digital geographic information, hospital and electronic medical record systems in China. Its commitment to leading-edge technology and quality assurance has won the Company numerous government and enterprise contracts throughout China. To learn more about the Company, please visit its 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 the impact of the mentioned contract win on the Company's business and operations; the ability of the Company to win the remainder of the contract, the expectation that a nationwide rollout can create $450 million in new market opportunities for CIST; 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:
Iris Yan
China Information Security Technology, Inc.
Tel: +86-755-8370-4767
Email: ir@chinacpby.com
Web: http://www.chinacpby.com
Investor Relations Contact:
ICR:
Michael Tieu
Tel: +86-10-6599-7960
Email: michael.tieu@icrinc.com
