Project Valued Approximately RMB 944 Million
SHENZHEN, China, Sept. 8 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("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 RMB 944 million (approximately US$138.0 million based on an exchange rate of USD 1.00 to RMB 6.84) E-city agreement for Nanjing New Town Science and Technology Park with a local government representative of Nanjing City.
According to the agreement, the project will commence in November 2009 and is expected to be fully completed before November 2011. The project's construction will be subjected to specific installation arrangements separated into several phases, and corresponding revenues will be recognized upon completion of each phase. In addition, the Industrial and Commercial Bank of China ("ICBC") will provide accounts receivable factoring service and working capital financing facilities for each phase of the project.
Located on the lower Yangtze River and with a population of approximately eight million, Nanjing is the capital of Jiangsu Province and one of the largest industrial cities in southeast China. This E-city project for Nanjing New Town Science and Technology Park -- "Project Accelerator" -- is customized to service fast-growing companies headquartered in the area and to catalyze regional economic growth. The project will be performed on a standard
Build-and-Transfer mode.
E-city, or Digital City, commonly refers to a set of advanced information facilities that combines broadband communications infrastructure, flexible and service-oriented computer systems, and multi-media and mass storage platforms, based on innovative GIS, GPS, remote sensing and various other technologies to meet the needs of governments, citizens and businesses. An E-city program involves the development of an integrated digital platform and comprehensive information technology facilities, including the development of Safe City, an Emergency Response System and an Information-based Transportation Management System.
Mr. Guoshen Tu, Chief Executive Officer of CSST, commented, "We are very pleased to announce this E-city project win in the prominent city of Nanjing. Our successful leap from Safe City to E-city illustrates our differentiated scale and scope to our government customers, as our leading brand, proven success, and unparalleled ability to provide comprehensive digital solutions to China's large cities once again were key winning criteria. We believe our expanding customer portfolio of these large-scale E-city projects will in turn drive additional wins in other major cities throughout China."
Mr. Tu continued, "As we had firmly established cooperation with large Chinese local banks in the past year, we are confident in our abilities to undertake big projects and believe that the receivable factoring agreements will fully satisfy our working capital needs. In addition, as we continue to push ahead with our bids for larger government contracts, we believe that the factoring agreements and other financing arrangements will continue to serve as strategic advantages and key factors in winning our bids."
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, CSST manufactures, distributes, installs and services surveillance and safety products and systems as well as develops surveillance and safety related software in China. Its customers are mainly comprised of commercial and government entities and non-profit organizations. CSST 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. Such statements include, among others, those concerning the Nanjing E-City project, our future cooperation with the ICBC and other banks, our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for surveillance and safety products, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. 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
