China Security & Surveillance Technology, Inc. Signs Letters of Intent to Acquire Two Chinese Security Service Companies
19 June 2009 - 12:52AM
PR Newswire (US)
SHENZHEN, China, June 18 /PRNewswire-Asia/ -- China Security &
Surveillance Technology, Inc. ("China Security" or "CSST" or the
"Company") (NYSE: CSR; Nasdaq Dubai: CSR), a leading provider of
digital surveillance technology in the PRC, today announced it has
signed letters of intent for equity transfer agreement with
Shanghai Forever Security Co., Ltd, (SFSC) and Beijing Emergency
Security Service Center for Maintenance and Repair (BESC), two
leading security companies in China in June 2009, for RMB17 million
(approximately $2.5 million based on a conversion price of USD: RMB
1.00:6.83) and RMB 3 million (approximately $0.4 million based on a
conversion price of USD: RMB 1.00:6.83) in cash, respectively.
Established in 1995, SFSC is a professional security service
company based in Shanghai. With its dedicated call center facility,
high-tech digital supervision alarm system and a fleet of guard
dispatch and patrol vehicles, SFSC provides professional security
and safety monitoring and first level alarm responses. SFSC owns a
Shanghai First Degree Certificate in Design and Installation of
Security Systems. It is also a member of China Security and
Protection Industry Association (CSPIA), Shanghai Security and
Protection Industry Association and China Standardization Technic
Committee for Security and Protection Alarm Systems (SAC/TC100). By
the end of 2008, SFSC had approximately 2,500 users subscribing to
their network security and alarm services. Established in 2006,
BESC is a professional security emergency maintenance service
provider based in Beijing, authorized by the local government and
the Beijing Security Industry Association. In conjunction with the
Beijing Security Industry Association, BESC has developed and
established various standards in the quality management and
maintenance of security related systems in Beijing. It is also the
only company approved by Beijing Municipal Administration for
Industry and Commerce to engage in maintenance and repair services
for security systems related to specific government projects. Its
services include the provision of emergency maintenance services,
routine maintenance services, and consulting services. BESC's
customers include government organizations, the public security
bureaus, hospitals, educational institutions and logistic
companies. Mr. Guoshen Tu, Chief Executive Officer of China
Security commented, "We are very pleased to announce the two
transactions which will facilitate our strategic objective of
building our security service business in China and a recurring
revenue business. The acquisitions also signify a strategic move on
our part to enter the security markets in Beijing and Shanghai.
This move fits nicely with our long-term strategy and reflects our
determination and confidence in building the largest homegrown
security service provider in China. We believe that as the security
market in China continues to grow and develop, professional
security services will become a key competitive differentiator.
About China Security & Surveillance Technology, Inc. Based in
Shenzhen, China, China Security manufactures, distributes, installs
and services security and surveillance products and systems as well
as develops security and surveillance related software in China.
Its customers are mainly comprised of commercial and government
entities and non-profit organizations. China Security 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. 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 upon
assumptions 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: Investor Contact: ICR: Michael Tieu Tel: +86-10-6599-7960
Email: Bill Zima Tel: +1-203-682-8200 Email: Media Contact: Patrick
Yu Fleishman-Hillard Hong Kong Tel: +852-2530-2577 Email:
DATASOURCE: China Security & Surveillance Technology, Inc.
CONTACT: Terence Yap of China Security & Surveillance
Technology, Inc., +86-755-8351-5634, ; or Investors, Michael Tieu,
+86-10-6599-7960, , or Bill Zima, +1-203-682-8200, , both of ICR;
or Media, Patrick Yu of Fleishman-Hillard Hong Kong,
+852-2530-2577, Web site: http://www.csst.com/
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