SHENZHEN, China, Oct. 13 /PRNewswire-Asia-FirstCall/ -- 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 its newly signed contracts in the third quarter of 2009 were valued at approximately US$30.05 million, an increase of over 14.3% compared to the contracts signed during the second quarter of 2009.
The Company won contracts from clients in 14 provinces and provincial cities during the third quarter of 2009, increasing its market presence from 28 to 32 provinces and provincial cities throughout China. Some important contracts secured in the third quarter included:
-- $11 million contract for Phase I of the Shenzhen Emergency Command
Digital Trunking Mobile Communications System Project;
-- $1.3 million contract for Phase II of the Zhuhai City Police-use GIS
Project;
-- $1.2 million contract for Shenzhen City Planning Bureau Digital Land
Resource Management System.
Of this quarter's contracts, 55% were for the Company's Digital Information Security Technology ("DIST") products, 30% were for its Geographic Information Systems ("GIS") products and 15% related to its Digital Hospital Information Systems ("DHIS") products. Management expects that the majority of these contracts will be recognized as revenue in 2009.
Mr. Jiang Huai Lin, Chairman and CEO of the Company, commented, "We are very excited about our record high contract wins in the third quarter. The increased bidding and spending activities from our local governmental customers throughout this quarter indicate that the economic recovery has
re-enabled many previously delayed government projects to move forward and created strong, positive momentum for our businesses. This record high value of contract wins also demonstrates further customer recognition of the quality of our industry-leading solutions in our core business segments: DIST, GIS and DHIS, all of which have experienced strong growth this quarter. We believe that the large contract win from Shenzhen Public Security Bureau, in particular, highlights an attractive potential market in applying our PGIS systems to telecommunication networks and will provide us with the competitive edge to win bids on similar projects in other provinces throughout China."
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 third quarter 2009 contract wins on the Company's business and operations; the likelihood that the Company's key customers will fully return to their regular spending activities; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to successfully apply its PGIS systems to telecommunication networks and gain a competitive edge to win bids on similar projects in other provinces throughout China; 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:
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
