SHENZHEN, China , Aug. 27 /Xinhua-PRNewswire-FirstCall/ -- China Public Security Technology, Inc. (OTC Bulletin Board: CPBY), (" China Public Security" or the "Company"), a leading provider of large-scale, high-tech public security information technology and Geographic Information Systems ("GIS") software and services in China , today announced it signed non-binding letters of intent to acquire two Chinese high technology companies, Shenzhen Information Security Development Technology Company Ltd. and Shenzhen Bocom Multimedia Display Technology Company Ltd.
China Public Security recently signed separate letters of intent to enter into exclusive partnership agreements with Shenzhen Information Security Development Technology Company Ltd. ("Shenzhen Information Security") and Shenzhen Bocom Multimedia Display Technology Company Ltd. ("Bocom Multimedia"), respectively. The total consideration payable for the two transactions is to be announced after the completion of due diligence by China Public Security. However, the consideration paid for Shenzhen Information Security and Bocom Multimedia will be subject to their achievement of certain net income performance targets over a two year period. In addition, each company is expected to be subject to a "make good" provision based upon future net income thresholds.
The acquisition of Shenzhen Information Security and Bocom Multimedia is subject to entry into definitive purchase agreements, final due diligence review, the receipt of government approvals, and the conversion of Shenzhen Information Security and Bocom Multimedia's financial statements to US GAAP. Further details relating to the acquisitions, including audited financial data for the respective target companies, will be disclosed at the closing of each transaction.
Shenzhen Information Security, provides a leading Certification Authority (CA) application platform and e-Government solution technology, and is an exclusive CA application provider for the Shenzhen municipality. A CA issues digital certificates, which contain a public key and the identity of the owner. The CA also attests that the public key contained in the certificate belongs to the person, organization, server or other entity noted in the certificate. CAs are currently used in China's e-Government industry and can be successfully integrated with China Public Security's platform and solutions, to enhance customer applications.
Bocom Multimedia is a leading provider of advanced multimedia display and control technology. The company's multimedia display technology and control systems can significantly enhance China Public Security's PGIS technology, and can be integrated into many applications in the China Public Security's First Responder Coordination System, thereby strengthening the Company's competitive advantages.
"We are very pleased to have signed letters of intent with these two companies," said Mr. Jiang Huai Lin , the Company's CEO. "We believe these acquisitions will further enhance our technology platform, differentiate our product offering and strengthen our competitive position in the public security industry. Furthermore, we believe that our acquisition of these companies will help us expand to other markets and become a national public security solutions provider."
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 services. CPST currently has the licenses to 16 registered and copyrighted software applications in China , through its exclusive commercial arrangement 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 enhance its technology platform, product offering and competitive position, the ability of the Company to expand to other markets or achieve its commercial objectives, 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.