SHENZHEN, China, June 24 /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 PRC, today announced it has signed a letter of intent to purchase 100% ownership in Santachi Video Technology Co., Ltd ("Santachi"), a leading security solutions provider for highways and railways in China for RMB150 million (approximately US$21.9 million based on an exchange rate of USD 1.00 to RMB 6.84). Completion of the 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 1999, Santachi is devoted to the development, manufacturing, sales, material requisition, custom engineering and post-sale service of a full range of electronic surveillance products and focuses on surveillance solutions for highways and railways nationwide. It has consistently been named one of the country's top 10 security brands, and its products have been deployed in more than 30% of China's highways, according to official statistics in 2006. Santachi is also the first company to bring forward the concept of "Entire Closed-Circuit Television Solutions." Headquartered in Shenzhen, Santachi has subsidiaries in over 30 cities across China, including Beijing, Shanghai, Guangzhou, Chengdu, Urumqi, etc. Its security products have also been exported to the United States, Europe, Brazil, Turkey, and other countries.
In addition to its leading position in highway and railway security, Santachi has also won various key government projects including Safe City projects throughout China. Partnering with China Telecom, the biggest state-owned telecommunication enterprise in China, Santachi was awarded the Dongguan City Surveillance Project, which included the implementation of 8,000 of Santachi's video servers. Santachi also was awarded Chongqing City's Jiu Long Po District Safe City Project, valued at approximately RMB48 million (approximately US$7.0 million).
Mr. Guoshen Tu, Chief Executive Officer of China Security, commented, "We are very pleased to announce the contemplated acquisition of Santachi Video Technology, as this transaction will further expand and deepen our Safe City business. Santachi's strong execution capability for large scale Safe City projects complements our core strengths, while its leading position and expertise in highways and railways can accelerate our goal of integrating Safe City projects with major infrastructure projects. We believe that the Chinese government's $586 billion stimulus package and accelerated pace of investments in further expanding and upgrading the nation's vast highway and railway network will provide additional opportunities for our business throughout the next several years.
"The Santachi opportunity represents our continued efforts to expand our market leadership in China's security and surveillance industry by expanding our portfolio of integrated solutions and services. As we execute our strategic growth plan, we aim to further consolidate our dynamic industry and to deliver strong, sustainable, long-term financial performance, and ultimately to reward our investors with shareholder value."
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 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 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 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
