GPS Control Systems to be Installed in Approximately 7,000 Taxis Citywide
BEIJING, Sept. 28 /Xinhua-PRNewswire-FirstCall/ -- China TransInfo Technology Corp. (OTC Bulletin Board: CTFO) ("China TransInfo" or "the Company"), a leading Geographic Information System technology provider for the People's Republic of China ("PRC") government's Transportation, Land & Resource and Digital City segments, today announced that it has signed a letter of intent with the city of Urumqi's Department of Transportation to install global positioning system ("GPS") control units in most of taxis in Urumqi, Xinjiang Province.
In accordance with the letter of intent, China TransInfo will work with the city of Urumqi to build a central GPS operations platform and to install GPS control terminals in approximately 7,000 taxies for the purpose of providing real-time traffic data to the city of Urumqi's Department of Transportation. China TransInfo will operate the system for a 15-year period, and has rights to place interior or exterior advertisements on each taxi over the term of the agreement.
"This exclusive, long-term contract to distribute and operate Urumqi's real-time traffic data will generate a recurring stream of revenue and profits to China TransInfo, along with additional opportunities from taxi advertisements," Mr. Xia, Chief Executive Officer of China TransInfo, said. "Because we are building the platform in partnership with the city of Urumqi, it also establishes a high barrier to entry to competitors. We now have even more confidence in our future growth potential as we proceed with our strategy to win similar projects in China."
China TransInfo believes that successful completion of the project will enhance the Company's credibility in Xinjiang Province and possibly lead to additional projects within the province. The GPS platform created by China TransInfo will be the central GPS service platform in Urumqi and will serve as a revenue model for future projects in other cities across China.
About China TransInfo Corporation
China TransInfo Corporation, through its subsidiary Beijing PKU ChinaFront High Technology Co., Ltd., offers a full range of GIS application solutions that cover GIS system planning, deployment, system construction, data testing, system audit & optimization, user's manuals and customer training through self-developed GIS platform software products for 2D and 3D GIS system models. The Company has 13 copyright registered certificates granted from the China Software Testing Center and the National Copyright Administration of the PRC. China TransInfo serves the government sectors of the GIS market in China with an emphasis on the following three major Chinese central government initiatives: (i) Transportation; (ii) Digital City; and (iii) Land & Resources. Intra-Asia also has a first mover advantage in the 3D GIS segment having developed the first and only three-dimensional GIS platform software in China. Furthermore, the Company's affiliation with Peking University, which currently owns 15% of the company, provides access to the University's GeoGIS Research Laboratory, including 30 Ph.D. researchers. China TransInfo has been thoroughly involved in the beta stages of the GIS information systems in China, especially in the transportation segment. In 2005 and 2006, the Company was awarded three of four Ministry of Transportation case models designed to test GIS application solutions. As a result, the Company is currently playing a key role in setting the standards for GIS solutions.
Safe Harbor Statement
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"forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included herein are "forward-looking statements." 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. You 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. Shudong Xia
Chief Executive Officer
China TransInfo Technology Corp.
Email: xsd@techfront.com.cn
Investor Relations Contact:
Mr. Crocker Coulson
President
Tel: +1-646-213-1915 (NY office)
Email: crocker.coulson@ccgir.com