China Public Security Technology Wins Phase I of the Shenzhen City Residence Card Information Management System Project

SHENZHEN, China , July 27 /Xinhua-PRNewswire-FirstCall/ -- China Public Security Technology, Inc. (OTC Bulletin Board: CPBY), (" China Public Security" or the "Company"), a leading provider of public security information technology and Geographic Information Systems ("GIS") software services in China , today announced that the Company has won the contract for construction of Phase I of the Shenzhen Residence Card Information Management System Project.

The Shenzhen Residence Card program is the one of the pilot projects advocated by China's Ministry of Public Security to reform the nation's household registration system. Construction of the entire Shenzhen Residence Card program is expected to take three years, with a total investment of approximately $390 million, an estimated $39 million of which has been set aside for the development and implementation of Information Management System. China Public Security has won the contract for construction of Phase I of the Shenzhen Residence Card Information Management System, valued at approximately $2.2 million dollars. Construction is expected to commence in the third quarter of 2007.

Shenzhen Residence Card Information Management System is an integral part of the entire Shenzhen Residence Card program. Through an integrated information transfer platform, the new system will facilitate several social programs in Shenzhen, including social welfare management, one-child policy family planning management, education management, and house rental management. The system will enable various government agencies to access information regarding immigrant populations and improve public management capabilities. In the near future, the Shenzhen Residence Card Information Management System may be expanded to be compatible with other applications, such as Trans Card (an e-currency card widely used as a payment vehicle in Shenzhen for buses, subways and other small purchases), and could be used to access medical history, personal credit history, and driving records.

China's Ministry of Public Security plans to first deploy the Residence Card Information Management System in China's largest cities, including in Shanghai and Shenzhen, and if successful, the system may be extended to 660 cities across China . The Residence Card Information Management System is designed to provide better visibility and control of the large scale urbanization and internal immigration associated with China's economic development. According to national statistics, there are over 150 million internal immigrants in China , and in many large and medium-sized cities, the population of recent immigrants from rural areas now exceeds the resident population. The bidding process for Phase 2 construction of the Shenzhen Residence Card Information Management System, which has an estimated value of $7 million USD, is expected to commence in the fourth quarter of 2007, and other Shenzhen Residence Card Information Management System projects are planned for implementation in 2008 and 2009.

"We are very excited and proud to have won the Shenzhen Residence Card Information Management System Project. Successful performance on this project will further showcase our technology prowess and large scale execution capability in the Public Security sector," said Mr. Jiang Huai Lin , the Company's CEO. "Our development of three key integrated operation platforms, including our Police GIS system, First Responder Coordination Platform and the pending Shenzhen Residence Card Information Management System, shows our ability to address China's critical security needs in an era of rapid development and increasing mobility, and puts us in a good position to win additional Residence Card Information Management System contracts in other regions across China . We believe that our successful completion of this contract will be an important step in achieving our financial goals for 2007."

About China Public Security Technology, Inc.

Through its wholly-owned Chinese subsidiary, CPST is focused on the development and implementation of large scale, high-tech public security and Geographic Information System (GIS) related projects. The Company provides a broad portfolio of fully integrated solutions and services, including public security information technology (First Responder Coordination Platform, Intelligent Border Control and Intelligent Security Surveillance), Geographic Information System (Police-use GIS and Civil-use GIS), and e-Government Platform services, software sales and maintenance as well. CPST currently has the licenses to 16 registered and copyrighted software applications in China , through its exclusive business turnkey agreement with Shenzhen iASPEC Software Engineering Company Limited (iASPEC). Under this agreement the Company acts as iASPEC's exclusive subcontractor to all its customers. To learn more about the Company, please visit the 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 Public Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding the ability of the Company to generate greater opportunities for winning additional projects or otherwise 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. You 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.

SOURCE China Public Security Technology, Inc.



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