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China TransInfo Technology Signs New Contract with City of Huhhot

2008-02-14 14:23 960


BEIJING, Feb. 14 /Xinhua-PRNewswire-FirstCall/ -- China TransInfo Technology Corp., (OTC Bulletin Board: CTFO), ("China TransInfo" or "the Company"), a leading provider of public transportation information systems technology and comprehensive solutions in the People’s Republic of China, announced today that it signed a contract jointly with the Huhhot Comprehensive Traffic Information Center and the Huhhot Department of Transportation Administration on January 28, 2008 to exclusively invest in and construct the LED stripe screen advertisement broadcasting system for taxis (LSABS) in the city of Huhhot. LSABS will be an integral part of the Huhhot central traffic command and information coordination system. With a population of roughly 2.5 million, Huhhot is the capital city of the Inner-Mongolia Autonomous Region in northern China.

The contract with Huhhot will be effective for 15 years. Pursuant to the agreement, China TransInfo will install LED screens and other equipment to compliment the pre-existing GPS system platform in vehicles. The new LSABS system will display advertisements and other information both inside and outside of taxis.

As stated in the terms of the contract, China TransInfo will maintain the exclusive rights to use LED stripe screens on the roofs of taxis, media platforms inside taxis, and rear window space for advertising purposes. As a result, China TransInfo is the only company authorized to provide taxi advertising in Huhhot, giving it 100% of market share for the effective length of the contract. In total, China TransInfo will be installing equipments on 4,666 taxis.

In addition, China TransInfo will be responsible for ad placement and operations management for the LED stripe screen media platform. By also providing free public information broadcasting services for the local government on these display screens, the Company has obtained the exclusive right to use real-time operations data from taxis, including taxi speed and location, free of charge. China TransInfo may use this as the foundation to develop interactive traffic information services.

“We are very excited to provide Huhhot with our transportation media platform services,” stated Mr. Shudong Xia, CEO of China TransInfo. “This contract has further expanded the geographic breadth of our clientele, increasing China TransInfo’s profile as one of the few companies which can provide transportation information services on a national scale.”

Prior to Huhhot, China TransInfo has also signed similar contracts with Urumqi in Xijiang province and Chengdu in Sichuan province. The Company believes that the LSABS business is developing favorably and plans to use a similar business model in more domestic cities.

About China TransInfo

China TransInfo, through its subsidiary Beijing PKU ChinaFront High Technology Co., Ltd. ("PKU"), is primarily focused on providing transportation information services. The Company aims to become the largest transportation information product and comprehensive solutions provider, as well as the largest integrated transportation information platform and commuter traffic media platform builder and operator in China. China TransInfo is involved in developing multiple applications in transportation, digital city, land and resource filling system based on GIS technologies which is used to serve the public sector. In addition, the Company is also developing its transportation system to include ETC technology. The Company is the co-formulator to several transportation technology national standards and has software copyrights for to 13 software products. China TransInfo has won 3 of 4 model cases sponsored by PRC Ministry of Communications. The Company’s affiliation with Peking University, which currently owns 5% of PKU, provides access to the University’s GeoGIS Research Laboratory, including 30 Ph.D. researchers. As a result, the Company is currently playing a key role in setting the standards for electrified transportation information solutions.

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements". 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.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any security.

For more information, please contact:

China TransInfo Technology Corp.

Mr. Troy Mao, CFO

Tel: +86-1352-0627195 (Beijing)

Email: troymao@ctfo.com

CCG Elite Investor Relations Inc.

Mr. Crocker Coulson, President

Tel: +1-646-213-1915 (New York)

Email: crocker.coulson@ccgir.com

Source: China TransInfo Technology Corp.
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Keywords: Transportation
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