China Security & Surveillance Technology, Inc. Signs Letters of Intent to Acquire Two Chinese Security Companies
09 July 2009 - 11:01PM
PR Newswire (US)
SHENZHEN, China, July 9 /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 P.R.C., today announced it
has signed letters of intent to purchase 100% ownership of Zhejiang
Loyal Co., Ltd. ("Zhejiang Loyal") and Anhui Guangcheng Technology
Co., Ltd. ("Anhui Guangcheng") for RMB110 million (approximately
US$16.1 million based on an exchange rate of USD 1.00 to RMB 6.83)
and RMB20 million (approximately US$2.9 million) respectively, in
each case to be paid partially in cash and partially in restricted
common stock of CSST over the next three years. Completion of each
transaction is subject to negotiation of a definitive equity
transfer agreement that will be subject to a number of closing
conditions, including regulatory approval. Established in 2005,
Zhejiang Loyal is engaged primarily in the design and installation
of fire safety auto-alarm networking systems. It also provides
professional fire monitoring and management services to its
networked customers. As the sole operator of the City Fire
Auto-Alarm Networking System Remote Monitoring Center in Zhejiang
province, it has constructed and now administers the central
monitoring center in Hangzhou city as well as regional sub-centers
in 11 cities including Jiaxing, Jinhua, Taizhou, Shaoxing and many
others across the province. With system inter-connection as its
core technology, and supported by industry experts from Tsinghua
University, Zhejiang Loyal has developed a fire alarm networking
platform that incorporates its proprietary technology and fully
conforms to the national fire codes and technical standards. The
platform is designed to accurately receive and transmit alarm
signals to the fire department in a timely manner. As of March
2009, Zhejiang Loyal had approximately 2,000 customers, 1,090 of
which are service subscribers with completed systems on-site. Its
customers include government organizations, power stations, oil
companies, telecom operators, transportation and educational
institutions. Established in 2003, Anhui Guangcheng is located in
the Hefei National High-tech Industrial Zone. It owns a number of
patents and National Certification of Security Information System
Installation and Supervision. In conjunction with the Ministry of
Transport of the P.R.C., Anhui Guangcheng actively participated in
the development of the National Intelligent Transportation
Networking Standards and many other industrial standards. Aiming to
become a leading intelligent transportation security system and
service provider, Anhui Guangcheng focuses on providing total
solutions and applications to the intelligent transportation
industry. Mr. Guoshen Tu, Chief Executive Officer of China
Security, commented, "We are very pleased to announce these two
contemplated acquisitions, and believe that the transactions will
effectively increase the competitiveness of our solutions and
services in the field of transportation safety, as well as
demonstrate our aim to enter the fire safety industry. As the
Chinese government continues to pay close attention to expanding
the nation's fire safety infrastructure, we believe that building
our fire services business can generate recurring revenue that will
augment our long term growth strategy." 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 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: 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, , all for China
Security & Surveillance Technology, Inc. Web site:
http://www.csst.com/
Copyright