SHENZHEN, China, July 15 /PRNewswire-Asia/ -- China Information Security Technology, Inc. (Nasdaq: CPBY) ("China Information Security" or the "Company"), a leading total solutions provider of Geographic Information Systems (GIS), digital public security and hospital information systems in China, today announced that during the second quarter of 2010, the Company signed new contracts valued at $39.26 million, in the aggregate, an increase of 49% compared to the same period in 2009. Management expects that the majority of these contracts will be recognized as revenue in 2010.
During the second quarter of 2010, the Company won contracts from clients in 16 provinces and provincial cities in China. Some important contracts secured in the second quarter included:
-- $5.0 million contract for a GIS/Intelligent Traffic Management System
for the 16th Asian Games in Guangzhou, China
-- $6.0 million contract for Police-use GIS (PGIS) in Shanghai, Shenzhen,
Zhuhai, Jiangxi, Hunan and Guangxi under China's National PGIS
Standardization Program
-- $1.3 million contract for a PGIS large-screen display system for the
Fujian Department of Public Security
-- $0.8 million contract for a GIS surveying and mapping project for Jiayu
City, Hubei Province
-- $0.6 million contract for a Digital Hospital Information System for the
Guangxi Department of Health
Mr. Jiang Huai Lin, Chairman and CEO of the Company, commented, "We believe that our expanding portfolio of capabilities, combined with the excellent reputation of our product solutions in the PRC market, contributes to our continued contract wins from both new and existing clients. The contracts won in the second quarter of 2010, in particular, demonstrate our success in integrating DIST capabilities with GIS solutions to create more sophisticated and powerful tools, such as intelligent management systems, for our customers. Furthermore, these contract wins prove our ability to penetrate new markets nationally. We expect that our growth trend will continue as we address a huge market in China with very high barriers-to-entry."
About China Information Security Technology, Inc.
China Information Security Technology, Inc., together with its subsidiaries, specializes in Geographic Information Systems (GIS), digital public security and hospital information systems, with the goal of being the largest GIS software provider in the People's Republic of China. Headquartered in Shenzhen, China, the Company's total solutions include specialized software, hardware, systems integration, and related services organized into three business segments - Geographic Information Systems, Digital Information Security Technology (DIST), and Digital Hospital Information Systems (DHIS). 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 statements regarding: the significance of the second quarter 2010 contract wins to the Company's business and the Company's ability to successfully fulfill its obligations under the contracts; the expectation that public infrastructure spending in China will continue the Company's growth trend; the ability of the Company to expand its portfolio capabilities, continue expansion to new markets beyond the Guangdong region, continue winning contracts from both new and existing clients, and to otherwise 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 further information, please contact:
China Information Security Technology, Inc.
Iris Yan
Tel: +86-755-8370-4767
Email: ir@chinacpby.com
Web: http://www.chinacpby.com
Christensen
Kathy Li
Tel: +1-480-614-3036
Email: kli@christensenir.com
Roger Hu
Tel: +86-158-1049-5326
Email: rhu@christensenir.com
