SHENZHEN, China, July 29 /Xinhua-PRNewswire-FirstCall/ -- 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 the Company has been awarded two contracts to construct aerophotogrammetrical surveys and digital maps for China's Bureau of Land and Resources. One contract, for the city of Nanning, in Guangxi Province, is valued at $1.3 million and the other contract for the city of Jiaxing, in Zhejiang Province, has a contract value of $3.3 million. CIST expects the contracts to be completed by October 2008.
The contracts will require production of Digital Elevation Models (DEMs) and Digital Orthophoto Quadrangles (DOQs), which are often used in Geographic Information Systems. A DEM is a digital representation of ground surface topography or terrain. Commonly built using remote sensing techniques or from land surveying, DEMs are the most common basis for digitally-produced relief maps. A DOQ is an aerial photo that has been geometrically corrected, or orthorectified, such that the scale of the photograph is uniform, meaning that the photo can be considered equivalent to a map. An orthorectified aerial photo, or orthophotograph, can be used to measure true distances, because it is an accurate representation of the earth's surface, having been adjusted for topographic relief, lens distortion and camera tilt. DOQs can also be used in many different fields, such as city planning, environmental protection, farming, water conservancy, emergency coordination, public security and city management.
For Nanning, the Company will acquire true color digital images of the city with a total area of 2200 square kilometers. It will then create a 1:2000 DEM and DOQ. This project will provide basic working maps for continuous land surveying and acreage calculations. In Jiaxing, the Company will acquire digital images of the city with a total area of 450 square kilometers. Its GIS platform will create a 1:500 DEM and DOQ, producing high precision map data that should improve land management efficiency, while meeting the city's current stringent requirements.
"These contract wins further demonstrate the synergies that we have generated from holding both the Level A Certificate of Surveying & Mapping and Computer System Integration Level One Qualification licenses," commented Mr. Jiang Huai Lin, CEO of China Information Security. "We believe that our comprehensive GIS-related services distinguishes us from other companies in China's 3S market and will allow us to execute our national market expansion plans and strengthen our brand recognition. We hope that these RS contracts will provide us with greater opportunity to win future follow-on contracts as China's city landscapes continue to change in the wake of the country's rapid economic growth."
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 Nanning and Jiaxing Aerophotogrammetrical Survey and Digital Mapping 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
