SHENZHEN, China, Nov. 18 /PRNewswire/ -- China Security & Surveillance Technology, Inc. (NYSE: CSR; DIFX: CSR), a leading provider of digital surveillance technology in China, today announced that Whitehorse Technology Limited, a company wholly owned by Mr. Tu Guo Shen, Chief Executive Officer of CSST, signed a Memorandum of Understanding ('MoU') to repurchase U.S.$50,000,000 in aggregate principal amount of Exchangeable Senior Notes (the "Notes") due 2012 from a third party investor not affiliated with CSST.
Whitehorse has not defaulted in any situation with the third party investor for the Notes. The parties to the Notes have reached an MOU today, which states that Whitehorse will repurchase the Notes by repayment installments. All of the repayment amount will be repaid by the middle of 2009. The collateral shares will be returned on a pro rata basis to Mr. Tu upon each repayment.
Mr. Guo Shen Tu, commented, "The terms of this MoU will provide greater flexibility and it releases the pressure of the obligations for Whitehorse under the Notes. I am very confident that this framework is good news not only for Whitehorse but for CSST also as it provides more confidence and accountability to our shareholders and potential investors."
Mr. Tu continued, "The intent of this original loan was to repurchase shares of CSST to demonstrate my commitment to CSST and express my belief that CSST's recent share price levels undervalue the company. The Notes were issued by Whitehorse and secured by my own holdings of CSST common stock. They did not result in any dilution of shares of common stock held by other CSST stockholders, interest on the Notes was paid by Whitehorse and CSST's net income was not affected in any way by my open market share purchase transactions."
CSST was not a party to any of the Note agreements and did not make any representations, warranties or covenants in connection with the Notes.
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 Contacts
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
