SHENZHEN, China , Feb. 19 /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, today announced that its variable interest entity, Shenzhen iASPEC Software Engineering Company Limited ("iASPEC"), has entered into a series of agreements to acquire 57% of the shares of Wuda Geoinformatics Co., Ltd. ("Geo"), a leading provider of GIS software products and integrated solutions in China , for an aggregate purchase price of RMB49.5 million (approximately US$6.8 million) in cash. The transactions are expected to close on or before April 1, 2008 , after which, iASPEC will become Geo's controlling shareholder, and Wuhan University, Geo's founder, will be the second largest shareholder through direct and indirect investments.
Geo was founded in 1999 by Wuhan University, a leading university in Asia for GIS-related studies. Geo develops and sells GIS software, contracts surveying and mapping projects, produces space measurement data and provides technical consulting and supervision services for GIS projects. Geo's affiliation with Wuhan University has enabled it to develop impressive research and development capabilities and has resulted in the development of the copyrighted, award winning GeoStar(R) system. The GeoStar(R) system consists of a large-scale GIS and software series, covering the whole GIS product family, from data acquisition through data processing and huge database management, GIS customization and the publication of geographic data on the internet. In 2005, Geo was granted a Level A Certificate of Surveying & Mapping, the highest qualification for providing the widest range of GIS services in China .
In addition to its research and development capabilities, Geo will provide the Company with direct access to numerous permits and mapping data that will further enhance the Company's technological capabilities, lower project construction costs and enable the Company to price its products and services more competitively. The Company's ownership of the data will also provide licensing and recurring domestic and international revenue opportunities for the Company.
"We look forward to becoming the controlling shareholder of Geo," said Mr. Jiang Huai Lin , CEO of China Public Security. "We believe this acquisition will further enhance our technology platform, product offering and competitive advantages, and will enable us to expand our PGIS expertise to the larger GIS market. We also welcome the opportunity to be associated with the prestigious Wuhan University and to have access to its top GIS research and development team."
After the closing of the acquisition, China Public Security will be the only company in China with both the Level A Certificate of Surveying & Mapping and the Computer System Integration Level One Qualification under its umbrella, which will serve as a testament to the Company's technological capabilities in the GIS sector.
About Wuda Geoinformatics Co., Ltd.
Wuda Geoinformatics Co., Ltd. (Geo) provides integrated solutions through innovative technology that covers the whole life cycle of spatial information, including acquiring, processing and updating geospatial data at the front-end, database establishment, integration and management in the middle, and analysis, application and publish of spatial information at the back-end. Geo has over 200 employees and supplies a wide range of customers with expertise and professional services, including data production and supervision, application and development, technical support and consultation. Geo's customers are engaged in many industries, including surveying and mapping, city planning, territorial management and electric power, in more than thirty provinces and municipalities in China . Its key customers include the Urban Planning and Land Resource Bureau of Shenzhen City, the Informatization Office of Nanchang City, the National Basic Geographic Information Center, the Urban Planning and Land Resource Bureau of Shenyang City, the Land Resource Information Center of Guangdong Province, the Land Resource Department of Guangxi Province, the Land Resource Bureau of Dongguan City, Urban Planning Reconnaissance and Design Institute of Guangzhou City and the Urban Planning and Design Institute of Dongguan City. Geo also provides integrated data processing services to customers in the U.S. and Europe .
About Wuhan University
Founded in 1893, Wuhan University is one of the top tier universities in China , with strong research capabilities and talented professionals. It has the only research laboratory that has been awarded the designation of "State Key Laboratory of Information Engineering in Surveying, Mapping and Remote Sensing in China ." Its School of Geodesy and Geomatics has the most comprehensive surveying and mapping subjects in Asia.
About China Public Security Technology, Inc.
Through its wholly-owned Chinese subsidiary, China Public Security is focused on the development and implementation of large scale, high-tech public security and 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. Through its exclusive contractual arrangement with Shenzhen iASPEC Software Engineering Company Limited (iASPEC), China Public Security has the licenses to 16 registered and copyrighted software applications in China . In addition, iASPEC is considered the Company's variable interest entity, and its financial data and information is consolidated into the Company's accounts. 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 effect of the Wuda Geoinformatics Co., Ltd. acquisition on the Company's ability to market its products and services; the general ability of the Company to 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. Investors 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.