SHENZHEN CITY, China, July 8 /Xinhua-PRNewswire/ -- China Information Security Technology, Inc., (Nasdaq: CPBY) (“China Information Security,” “CIST” or the “Company”), a leading provider of Information Security and 3S (Geographic Information Systems -- GIS, Global Positioning Systems -- GPS and Remote Sensing -- RS) services in China, today announced that its newly signed contracts in the second quarter of 2008 is valued at $25.34 million, an increase of over 50% compared to the first quarter of 2008.
New contracts came from 15 provinces and provincial cities in China, including Guangdong, Fujian, Henan, Sichuan and Guangxi. Some significant contracts include the Police Geographic Information System (“PGIS”) for Heyuan City in Guangdong Province ($2.68 million), the PGIS for the An’xi City Police Bureau in Fujian Province ($1.55 million), the PGIS for the Shenzhen City Traffic Police Bureau in Guangdong Province ($2.38 million) and the Intelligent Anti-Stowaway System for the Shenzhen General Station of Exit and Entry Frontier Inspection ($2.3 million). Of these contracts, 45% were won in the Information Security sector, 24% were won in the 3S sector and 31% were won in connection with our Product Sales and Services. Management expects that the majority of the revenues from these contracts will be realized in 2008.
“We are pleased to see the growth in our operations in the second quarter, and the geographic expansion of our sales and marketing network,” commented Mr. Jiang Huai Lin, CEO of China Information Security. “We believe that our performance is indicative of our growing presence as a competitor in the national market and the strong demand for public security services. We remain confident in achieving our commercial goals for 2008.”
About China Information Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Information Security is focused on the development and implementation of large scale, high-tech information security and 3S (Geographic Information Systems -- GIS, Global Positioning Systems -- GPS and Remote Sensing -- RS) related projects. The Company provides a broad portfolio of fully integrated solutions and services, including Information Security (First Responder Coordination Platform, Intelligent Border Control System and Residence Card Information Management System), 3S and Product Sales and Services. Through its exclusive contractual arrangement with iASPEC Software Company Limited (iASPEC), China Information Security has the licenses to numerous registered and copyrighted software applications in China. In addition, iASPEC is considered the Company’s variable interest entity, and its financial data and information is consolidated into the Company’s accounts. To learn more about the Company, please visit the 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 Company’s contract wins and the general ability of the Company to 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 more information, please contact:
Company Contact:
Mr. Michael Lin
Vice President, Investor Relations
China Information Security Technology, Inc.
Tel: +1-949-743-0868
Email: mlin@chinacpby.com
Web: http://www.chinacpby.com
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Investor Relations
Tel: +1-646-213-1915 (NY office)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgir.com
