SHENZHEN, China, Jan. 14 /PRNewswire-Asia-FirstCall/ -- China Information Security Technology, Inc., (Nasdaq: CPBY) ("China Information Security," "CIST" or the "Company"), a leading application software developer, systems integrator and full-service Geographic Information Systems ("GIS") solutions provider to public security and civil-use markets in China, today announced that its newly signed contracts in the fourth quarter of 2008 were valued at $28.2 million, an increase of over 5.4%, compared to contracts signed during the third quarter of 2008, and that its PGIS product was named as a "Shenzhen Innovative Product".
Summary of Fourth Quarter Contracts
The Company won contracts from 2 new cities in the fourth quarter, bringing the total number of cities in which it has a presence in China to 26. Some significant contract wins included:
-- Remote Sensing Contract in Guangdong Province ($2.9 million)
-- PGIS Contract from Industry and Commerce Administrative Bureau of
Hainan Province ($2.73 million)
Of these contracts, 22% were won in the Information Security Technology sector, 58% were won in the Geographic Information Systems (GIS) sector, and 20% were won in the Product Sales and Services sector. Management expects that the majority of the revenues from these contracts will be realized before mid-2009.
"Shenzhen Innovative Product"
The "Shenzhen Innovative Product" award candidates are subject to a strict screening process and those products selected usually have proprietary rights and demonstrate significant innovation, with more advanced technological capabilities than other domestic competitive products. CIST's PGIS product, which has been well received by clients and successfully rolled out in multiple cities throughout China, passed the test developed by national technology authorities. Importantly, selected products become part of a preferred vendor list for government purchases and a resource for aid to companies applying for high-tech company certificates and other government support.
"We are pleased that our PGIS product was recognized as a Shenzhen Innovative Product," said Mr. Jiang Huai Lin, CEO of China Information Security. "Our receipt of this award is an indication that CIST continues to be at the forefront of product innovation with our competitive product offerings. We expect that the government's move towards supporting domestic software products and services, combined with our preferred vendor status will enable us to attain a higher level of brand recognition and help to increase our strong contract win ratio. Despite the current global economic slowdown, our products remain in high demand and we expect to maintain a healthy sales pipeline in 2009 as we continue our geographic expansion and leverage our unique capabilities into the Digital Hospital industry in 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, aiming to use information technology to improve public safety and information management. Its main business lines range from digital information security, to Geographic Information Systems (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 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 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 selection of the Company's PGIS product as a "Shenzhen Innovative Product" and its effect on the Company's ability to increase its sales, profits or market share; 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.ccgirasia.com
