SHENZHEN, China , April 2, 2008 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (the "Company" or ''CSST'') (NYSE: CSR), a leading provider of digital surveillance technology in China , today announced that it has completed the acquisition of two Chinese companies, Stonesonic Digital Technique Co., Ltd. (''Stonesonic'') and Longhorn Security Technology Co., Ltd. (''Longhorn'').
Under the terms of the acquisition of Stonesonic, the total consideration
is RMB227,037,605 (approximately US$32.4 million) comprised of 55% cash and
45% restricted common stock. The issuance of China Security's shares included
in the equity portion of the purchase price for the Stonesonic acquisition
will be subject to the achievement of certain net income performance targets
over a two year period, including a 2008 net income guarantee of RMB 35
million (approximately USD
Stonesonic, founded in 1993 and based in Chaozhou, Guangdong Province, is a leading monitoring equipment hardware manufacturer. This business will compliment China Security's existing product suite for Safe City projects. Stonesonic has received its High-tech Enterprise Certificate as well as 3111 product recognition.
Under the terms of the acquisition of Longhorn, the total consideration is
RMB120,557,510 (approximately US$17.2 million) comprised of 30% cash and 70%
restricted common stock. The issuance of China Security's shares included in
the equity portion of the purchase price for the Longhorn acquisition will be
subject to the achievement of certain net income performance targets over a
two year period, including a 2008 net income guarantee of RMB 18 million
Longhorn specializes in the manufacture and installation of security alarm systems in China . Longhorn's security alarm systems will compliment China Security's existing suite of security and surveillance system installations in China , allowing China Security to provide a more comprehensive security solution.
Mr. Guo Shen Tu , Chief Executive Officer of China Security commented, ''We are pleased to close these transactions, each of which will further strengthen our presence in China's growing security market.
Stonesonic is a leading monitoring equipment solutions provider in China that has a broad array of large flat panel display equipment. This addition to our product portfolio will provide us with a more comprehensive solution for Safe City projects with local governments. As one of China's leading alarm system manufacturers, Longhorn will allow China Security to move further into alarm monitoring for Safe City projects. It will also provide us the opportunity to penetrate the residential alarm monitoring service for our service division.
We are pleased that the Stonesonic and Longhorn acquisitions will be accretive immediately to earnings and believe that each of the transactions announced today will further strengthen our overall service offering and expand our geographic presence in China . We look forward to working with the senior management teams at each of these companies and are confident that their contributions will be meaningful to our business going forward. As the emerging leader in China's security industry, we remain highly encouraged with CSST's overall prospects for growth.''
The monetary exchange rate used for each transaction is US$1.0=RMB 7.01.
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , China Security manufactures, distributes, installs and maintains security and surveillance systems throughout China. China Security has manufacturing facilities located in China and an R&D facility which maintains an exclusive collaboration agreement with Beijing University. China Security has built a diversified customer base through its extensive sales and service network that includes numerous points of presence 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. These forward-looking statements may also include statements about our proposed discussions related to our business or growth strategy, which is subject to change. 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 filed with the Securities and Exchange Commission (SEC) on Form 10-K, and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov .
SOURCE China Security & Surveillance Technology, Inc.