SHENZHEN, China , March 27 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. ("Company") (NYSE: CSR), a leading provider of security solutions in China , today announced that it has won a bid for a Safe City project directly with the government of Jining City. Located in the Shandong province, Jining has a population of approximately 8.1 million people. The Safe City project is expected to cover all of Jining City and includes the installation of security cameras and related equipment, a build out of the city-wide secured network infrastructure which will enable digital images and data to be transmitted over a wide area. It will also include the digitization of an existing information database that will allow for more efficient and effective analysis of data.
The total project value of this contract is approximately RMB 800 million (approximately USD$114 million, based on a conversion price of USD: RMB 1.00:7.03). As part of this agreement, CSR will sub-contract the build out of the telecom infrastructure to a licensed telecom provider of its choosing. This is the biggest Safe City project ever won by CSR to date. The Company expects to begin realizing revenue from this agreement in 2008 with the majority of the revenues expected to be recognized in 2009. After the implementation of this contract, CSR will also have a right to provide security related services under a separate contract from the one announced today. In addition, as part of the project, CSR will have rights to place advertising banners on the surveillance camera poles deployed throughout the city. This will enable CSR to enjoy additional revenues.
Mr. Guo Shen Tu , Chief Executive Officer of China Security, commented, "This is a great win for CSR. Our recent Safe City project wins, including this project with Jining City highlights the continued success of our consolidation strategy and serves as further proof that we have assembled a total solutions offering that is unmatched by our competition. Our Safe City projects are becoming more comprehensive and as one of the few total solution providers in China , we are becoming more successful negotiating a larger segment of the business than ever before. Scale is highly important in the China market. The consolidation strategy that we have adopted over the past few years is beginning to show results. For this project, we were successful getting the local city government to award CSR this project in one large phase instead of smaller phases -- the Jining City government has formally agreed to award us with subsequent services work such as data management and back-end operating services before we have commenced initial work on this project. We are also allowed the right to provide operating security related services under a separate contract at a later date. As the leading one-stop-shop security solutions provider in China , we continue to see strong momentum in our business and look forward to record growth for our business in 2008."
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China , China Security manufactures, distributes, installs and maintains security and surveillance systems throughout the PRC. 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 the PRC. To learn more about the Company visit http://www.csst.com .
SOURCE China Security & Surveillance Technology, Inc.