SHENZHEN, China, July 9 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("China Security" or "CSST" or the "Company") (NYSE: CSR; Nasdaq Dubai: CSR), a leading provider of digital surveillance technology in the P.R.C., today announced it has signed letters of intent to purchase 100% ownership of Zhejiang Loyal Co., Ltd. ("Zhejiang Loyal") and Anhui Guangcheng Technology Co., Ltd. ("Anhui Guangcheng") for RMB110 million (approximately US$16.1 million based on an exchange rate of USD 1.00 to RMB 6.83) and RMB20 million (approximately US$2.9 million) respectively, in each case to be paid partially in cash and partially in restricted common stock of CSST over the next three years. Completion of each transaction is subject to negotiation of a definitive equity transfer agreement that will be subject to a number of closing conditions, including regulatory approval.
Established in 2005, Zhejiang Loyal is engaged primarily in the design and installation of fire safety auto-alarm networking systems. It also provides professional fire monitoring and management services to its networked customers. As the sole operator of the City Fire Auto-Alarm Networking System Remote Monitoring Center in Zhejiang province, it has constructed and now administers the central monitoring center in Hangzhou city as well as regional sub-centers in 11 cities including Jiaxing, Jinhua, Taizhou, Shaoxing and many others across the province. With system inter-connection as its core technology, and supported by industry experts from Tsinghua University, Zhejiang Loyal has developed a fire alarm networking platform that incorporates its proprietary technology and fully conforms to the national fire codes and technical standards. The platform is designed to accurately receive and transmit alarm signals to the fire department in a timely manner. As of March 2009, Zhejiang Loyal had approximately 2,000 customers, 1,090 of which are service subscribers with completed systems on-site. Its customers include government organizations, power stations, oil companies, telecom operators, transportation and educational institutions.
Established in 2003, Anhui Guangcheng is located in the Hefei National High-tech Industrial Zone. It owns a number of patents and National Certification of Security Information System Installation and Supervision. In conjunction with the Ministry of Transport of the P.R.C., Anhui Guangcheng actively participated in the development of the National Intelligent Transportation Networking Standards and many other industrial standards. Aiming to become a leading intelligent transportation security system and service provider, Anhui Guangcheng focuses on providing total solutions and applications to the intelligent transportation industry.
Mr. Guoshen Tu, Chief Executive Officer of China Security, commented, "We are very pleased to announce these two contemplated acquisitions, and believe that the transactions will effectively increase the competitiveness of our solutions and services in the field of transportation safety, as well as demonstrate our aim to enter the fire safety industry. As the Chinese government continues to pay close attention to expanding the nation's fire safety infrastructure, we believe that building our fire services business can generate recurring revenue that will augment our long term growth strategy."
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 may include 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 based upon premises 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 on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov.
For more information, please contact:
Company Contact:
Terence Yap
Tel: +86-755-8351-5634
Email: ir@csst.com
Investor Contact:
ICR:
Michael Tieu
Tel: +86-10-6599-7960
Email: michael.tieu@icrinc.com
Bill Zima
Tel: +1-203-682-8200
Email: bill.zima@icrinc.com
Media Contact:
Patrick Yu
Fleishman-Hillard Hong Kong
Tel: +852-2530-2577
Email: patrick.yu@fleishman.com
