SHENZHEN, China, April 16 /Xinhua-PRNewswire-FirstCall/ -- China Information Security Technology, Inc., (OTC Bulletin Board: CIFS) (“China Information Security”, “CIST” or the “Company”), a leading provider of Information Security and 3S (Geographic Information System -- GIS, Global Positioning System -- GPS and Remote Sensing -- RS) services in China, today announced that its newly signed contracts in the first quarter of 2008, including those of newly acquired businesses Information Security Development Technology (Shenzhen) Company Ltd. (“ISDT”) and Shenzhen Bocom Multimedia Display Technology Co., Ltd. (“Bocom Technology”), is now valued at $16.63 million.
Due to the Chinese Spring Festival, the first quarter usually represents the lowest new contract value signed throughout the year. But newly signed contracts in the Company’s first quarter nearly doubled, compared to the fourth quarter of 2007. The new contracts represent business in 14 provinces and provincial cities in China, including Guangdong, Chongqing, Tianjin, Jiangxi, Guangxi, Zhejiang, Shanghai, Yunnan, Fujian, Hainan, Liaoning, Shaanxi, Sichuan and Macao. Among these contracts, 45% of them came from the Information Security sector, 22% from 3S and 33% from Product Sales and Services. Management expects that a majority of the revenues from these contracts will be realized in 2008.
“We are pleased to see such strong momentum in our operations in the first quarter, as we reaped the benefits of our expanded product portfolio and further geographic reach,” said Mr. Jiang Huai Lin, CEO of China Information Security. “With the rapid expansion of our customer base and successful integration of newly acquired businesses, we expect that we will strengthen our competitive position and increase our market share.”
The Company also announced that it has successfully integrated the product line of Wuda Geoinformatics Co., Ltd. (“Geo”) into its core business. All of Geo’s revenues will be consolidated into the Company starting from April 1, 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 System -- GIS, Global Positioning System -- 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 (GIS, GPS and RS), 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.cistchina.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 effect of the newly signed contracts; 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@cistchina.com
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Elite Investor Relations
Tel: +1-646-213-1915 (NY office)
Email: crocker.coulson@ccgir.com
