SHENZHEN, China, April 15 /PRNewswire-Asia/ -- China Information Security Technology, Inc., (Nasdaq: CPBY) ("China Information Security," "CIST" or the "Company"), a leading application software developer, systems integrator and full-service Geographic Information Systems ("GIS") solutions provider to public security and civil-use markets in China, today announced that its newly signed contracts in the first quarter of 2009 were valued at $18.5 million.
Summary of First Quarter Contracts
The Company won contracts from 14 provinces and provincial cities in the first quarter of 2009, bringing the total number of cities in which it has a presence in China to 28. Some of the important contracts secured in the first quarter included:
-- Patented Medical Case Statistics Software selected for an exclusive
contract by the Health Department of Guangdong Province, valued at $2.5
million
-- Command System and Remote Data Backup System for the Shenzhen General
Station of Exit and Entry Frontier Inspection, valued at $3.2 million
-- First Responder Coordination Platform for the Shenzhen Transportation
Bureau, valued at $0.8 million
-- Shenzhen Traffic Police GIS System, valued at $1.7 million
-- Police-use GIS for the Public Security Bureau of Dongfang City, Hainan
Province, valued at $1.0 million
Of these contracts, 40% were won in the Digital Information Security sector, 46% were won in the Geographic Information Systems (GIS) sector, and 14% were won in the Digital Hospital Information Systems sector. Management expects that a majority of the revenues from these contracts will be realized in 2009. The first quarter of the year historically is seasonally slowest for the Company due to the Chinese New Year holiday. With the rollout of China's stimulus package underway, management expects to secure more contracts in the upcoming quarters.
"We were pleased that our patented Medical Case Statistics Software was selected for an exclusive contract by the Health Department of Guangdong during the quarter," commented Mr. Jiang Huai Lin, CEO of China Information Security. "We believe that the selection of our product is a demonstration of our corporate strength and capabilities, and a reaffirmation of our strategic entrance into the digital hospital sector. We remain confident in achieving our 2009 guidance due to a number of reasons, including the effect of China's infrastructure stimulus plan, ongoing construction for the 2011 26th World University Games in Shenzhen and the positive impact on our revenue and profits due to the recent selection by China's Ministry of Public Security of our PGIS technology for use in standardizing PGIS applications nationally."
About China Information Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Information Security Technology, Inc. headquartered in Shenzhen, China, is a leading application software developer, systems integrator and full-service Geographic Information Systems ("GIS") solutions provider to the public security and civil-use markets in China, aiming to use information technology to improve public safety and information management. Its main business lines range from digital information security, to GIS solutions, and digital hospital information systems. The Company provides a broad portfolio of fully integrated solutions and services, including its First Responder Coordination Platform, Intelligent Border Control System, Residence Card Information Management System, Digital Hospital Information System and Police- and Civil-use GIS products, to serve the growing demand for digital hospital and electronic medical record systems in China. Its commitment to leading-edge technology and quality assurance has won the Company numerous government and enterprise contracts throughout China. To learn more about the Company, please visit its corporate website at http://www.chinacpby.com .
Safe Harbor Statement
This press release may contain certain 'forward-looking statements' relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are 'forward-looking statements' including the impact of the first quarter 2009 contract wins on the Company's business and operations; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. 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. Investors 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:
Ms. Iris Yan
Investor Relations Manager
China Information Security Technology, Inc.
Tel: +86-755-8370-4767
Email: ir@chinacpby.com
Web: http://www.chinacpby.com
Investor Relations Contact:
CCG Investor Relations
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (NY office) or
Mr. Gary Chin
Tel: +1-646-213-1909
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com
