Agreement Valued at Approximately RMB 170 Million
SHENZHEN, China, Dec. 1 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. (NYSE: CSR; NASDAQ Dubai: CSR)('The Company' or 'CSST'), a leading provider of security solutions in China, today announced that it has signed a Safe City framework agreement valued at approximately RMB 170 million (approximately US$25 million) with the local government in Guangshui City.
Guangshui City is located in the northeast of Hubei Province with a population of roughly 1 million people. The scope of this project entails a build out of an integrated digital security network, environmental safety detection system, emergency response and security data management facilities for the local public security bureau. Revenue from this project is expected to be recognized in 2009.
Mr. Guoshen Tu, Chief Executive Officer of CSST commented, "We are very excited to announce an additional Safe City project to our project pipeline scheduled for next year. Our strong reputation and proven capabilities providing total security solutions to many local governments in China have allowed us to expand into additional regions of the country. With the various banking facilities we have established over the past year, we are extremely confident that we have secured sufficient financing to help us capture as much Safe City business as possible and meet our ongoing working capital needs without compromising our balance sheet. We started our relationship with IBM Global Financing Asia during the third quarter of this year. This has and will continue to assist in the equipment purchase financing for our various Safe City contracts.
In addition, we have initiated our banking facilities with China Construction Bank to address working capital requirements on specific Safe City contracts. Moving forward, we will begin to work with the Shanghai Pudong Development bank and other domestic banks in china to address working capital and receivable financing for the government Safe City projects in 2009. These various financing facilities will continue to support our strategic efforts to expand our penetration into the government-related Safe City projects. In spite of the global economic slowdown, we continue to see strong momentum from security and infrastructure solutions in the Chinese market. We also believe the recent USD$586 billion stimulus package from Chinese government will provide additional opportunities for our business ahead. We are pleased to be a leading player in China's security market and continue to focus on the execution of our strategic growth plan."
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, China Security manufactures, distributes, installs and services security and surveillance products and systems as well as develops security and surveillance related software in China. Its customers are mainly comprised of commercial and government entities and
non-profit organizations. China Security has built a diversified customer base through its extensive sales and service network that includes over 150 branch offices and distribution points throughout China. To learn more about the Company visit http://www.csst.com .
Safe Harbor Statement
This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "will" "believes", "expects" or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and upon assumptions with respect to future business decisions, which are subject to change. We do not undertake to update the forward-looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
For more information, please contact:
China Security & Surveillance
Terence Yap
Tel: +86-755-8351-6102
Email: terence.yap@csst.com
Kewa Luo
Tel: +1-212-984-0688
Email: ir@csst.com
Investor Contact
Bill Zima & Ashley Ammon MacFarlane
Tel: +1-203-682-8200
Media Contact
Fleishman-Hillard Hong Kong
Patrick Yu
Tel: +852-2540-2577
Email: Patrick.yu@fleishman.com
