China Security & Surveillance Files 8K

SHENZHEN, China , Jan. 31 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (" China Security," "CSST" or the "Company") (NYSE: CSR), a leading provider of digital surveillance technology in the PRC, today announced that...


SHENZHEN, China , Jan. 31 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (" China Security," "CSST" or the "Company") (NYSE: CSR), a leading provider of digital surveillance technology in the PRC, today announced that Whitehorse Technology Limited, a wholly owned company by Mr. Tu Guo Shen , Chief Executive Officer issued and sold U.S. $50,000,000 in aggregate principal amount of Exchangeable Senior Notes due 2012 to a third party investor not affiliated with CSST. In connection with this transaction, Whitehorse and Mr. Tu pledged 8,750,000 shares of CSST's common stock that are directly and indirectly beneficially owned by Whitehorse and Mr. Tu , respectively, to secure the Notes. Whitehorse may only use the Note proceeds to (i) buy CSST common stock from CSST in a private transaction, (ii) make a loan to CSST, the proceeds of which may be used by CSST to fund certain acquisitions, or (iii) buy stock of CSST in the open market.

The Notes are issued to Mr. Tu and secured by his own holdings of CSST common stock and the Notes will neither result in any dilution of shares of common stock held by other CSST stockholders, nor will interest on the Notes, which is payable by Whitehorse and not CSST, in any way currently affect CSST's net income. CSST is not a party to any of the Note agreements and did not make any representations, warranties or covenants in connection with the Notes.

"I look forward to deploying my personal cash in a way that is beneficial to CSST. This initiative demonstrates my confidence in the long-term value of the Company," commented Mr. Tu .

This transaction is described in more detail in the 8K and other supporting documents filed with the Securities and Exchange Commission.

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 in China and a 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 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. 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 at http://www.sec.gov .

SOURCE China Security & Surveillance Technology, Inc.