SHENZHEN, China, March 25 /Xinhua-PRNewswire-FirstCall/ -- China Public Security Technology, Inc., (OTC Bulletin Board: CPBY) (“China Public Security” or the “Company”), a leading provider of public security information technology and Geographic Information Systems (“GIS”) software services, today announced that the Company has successfully completed construction of Phase I of the Shenzhen City Residence Card Information Management System Project and is actively preparing for the Phase II bidding process.
The Shenzhen Residence Card program is the one of the pilot projects advocated by China’s Ministry of Public Security to reform the nation’s household registration system. Construction of the entire Shenzhen Residence Card program is expected to take three years, with a total investment of approximately $390 million, an estimated $39 million of which has been set aside for the development and implementation of the Information Management System.
The Shenzhen Residence Card Information Management System is an integral part of the entire Shenzhen Residence Card program. Through an integrated information transfer platform, the new system will facilitate several social programs in Shenzhen, including social welfare management, one-child policy family planning management, education management, and house rental management. The system will enable various government agencies to access information regarding immigrant populations and improve public management capabilities. In the near future, the Shenzhen Residence Card Information Management System may be expanded to be compatible with other applications, such as Trans Card (an e-currency card widely used as a payment vehicle in Shenzhen for buses, subways and other small purchases), and could be used to access medical history, personal credit history, and driving records.
China’s Ministry of Public Security plans to first deploy the Residence Card Information Management System in China’s largest cities, including in Shanghai and Shenzhen, and if successful, the system may be extended to 660 cities across China. The Residence Card Information Management System is designed to provide better visibility and control of the large scale urbanization and internal immigration associated with China’s economic development. According to national statistics, there are over 150 million internal immigrants in China, and in many large and medium-sized cities, the population of recent immigrants from rural areas now exceeds the resident population.
The Company has completed Phase I of the Shenzhen Residence Card Information Management System, valued at approximately $2.2 million dollars, and to date, the system has accepted nearly 200,000 applications for residence cards. The system has also improved public security through the identification and capture of several criminals who had previously escaped detection.
The bidding process for Phase II, which has an estimated value of $7 million, is expected to commence in the first half of 2008. The Company believes that the successful completion of Phase I of the Shenzhen Residence Card Information Management System has made the Company a strong contender for the Phase II contract win.
“We are very proud to have completed Phase I of the Shenzhen Residence Card Information Management System Project,” said Mr. Jiang Huai Lin, the Company’s CEO. “We believe that our performance on this project further showcases our technology prowess and large scale execution capability in the public security sector. We remain excited about the bidding process for Phase II and our prospects for winning additional follow-on contracts when the pilot system is extended to other cities across China.”
About China Public Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Public Security is focused on the development and implementation of large scale, high-tech public security and GIS related projects. The Company provides a broad portfolio of fully integrated solutions and services, including public security information technology (First Responder Coordination Platform, Intelligent Border Control and Intelligent Security Surveillance), Geographic Information System (Police-use GIS and Civil-use GIS), and e-Government Platform services, software sales and maintenance. Through its exclusive contractual arrangement with Shenzhen iASPEC Software Engineering Company Limited (iASPEC), China Public Security has the licenses to 16 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 Public 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 general ability of the Company to win Phase II of the Shenzhen Residence Card Information Management System Project, win additional follow-on contracts when the Residence Card system is extended to other cities across China or otherwise 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 Public Security Technology, Inc.
Tel: +1-949-743-0868
Email: mlin@chinacpby.com
Investor Relations Contact:
Mr. Crocker Coulson
President
CCG Elite Investor Relations
Tel: +1-646-213-1915 (NY office)
Email: crocker.coulson@ccgir.com
