China Information Security (CPBY) Announces Signing of $6M in Contracts
China Information Security Technology, Inc. (Nasdaq: CPBY) today announced that it recently signed contracts valued at approximately US$6 million, with 6 cities and provinces including Shanghai, Shenzhen, Zhuhai, Jiangxi, Hunan and Guangxi, for the installation of their core police-use geographic information systems ("PGIS") platform under the initial roll-out of China's National PGIS Standardization Project (the "Project"). The contracts are expected to be completed by the end of 2010.
The goal of the Project is to upgrade and integrate all variations of PGIS systems throughout the country, in order to provide uniformity of standards, basic data, common technology and application mode characteristics; share information among different police divisions and regions across China; and enhance quick response capabilities for public emergencies. The Company's core PGIS technology was selected last year by China's Ministry of Public Security for use in standardizing PGIS technologies under the Project.
The Project will be implemented in 660 cities across China over the next 5 years and is expected to result in the standardization and interconnection of all PGIS systems in China. A total of 18 cities and provinces have been selected to participate in the first round of roll-out of the Project.
Mr. Jiang Huai Lin, Chairman and CEO of the Company, commented, "We are excited to win contracts representing one-third of the regions covered in the initial roll-out of the Project. We believe that these wins are a nod to our technological sophistication, proven track record, and contribution to the PGIS national standards. These wins are also an indication that our key products are effectively breaking into critical markets outside of the Guangdong region, notably in Shanghai, one of the largest cities in China and an emerging global financial center. We expect that Shanghai will serve as an anchor city for our further expansion into Eastern China, and will help to fuel our long-term goal to be the largest GIS provider in China. The new PGIS contracts also represent future opportunities for follow-on projects and maintenance contracts in these new markets once initial PGIS platforms are established. We expect that such recurring opportunities will establish our reputation in these new markets, and enable us to further penetrate them in the long-term."
The goal of the Project is to upgrade and integrate all variations of PGIS systems throughout the country, in order to provide uniformity of standards, basic data, common technology and application mode characteristics; share information among different police divisions and regions across China; and enhance quick response capabilities for public emergencies. The Company's core PGIS technology was selected last year by China's Ministry of Public Security for use in standardizing PGIS technologies under the Project.
The Project will be implemented in 660 cities across China over the next 5 years and is expected to result in the standardization and interconnection of all PGIS systems in China. A total of 18 cities and provinces have been selected to participate in the first round of roll-out of the Project.
Mr. Jiang Huai Lin, Chairman and CEO of the Company, commented, "We are excited to win contracts representing one-third of the regions covered in the initial roll-out of the Project. We believe that these wins are a nod to our technological sophistication, proven track record, and contribution to the PGIS national standards. These wins are also an indication that our key products are effectively breaking into critical markets outside of the Guangdong region, notably in Shanghai, one of the largest cities in China and an emerging global financial center. We expect that Shanghai will serve as an anchor city for our further expansion into Eastern China, and will help to fuel our long-term goal to be the largest GIS provider in China. The new PGIS contracts also represent future opportunities for follow-on projects and maintenance contracts in these new markets once initial PGIS platforms are established. We expect that such recurring opportunities will establish our reputation in these new markets, and enable us to further penetrate them in the long-term."
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