China Security & Surveillance Technology Signs Letter of Intent to Acquire Three Chinese Security Companies

SHENZHEN, China , Aug. 1 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. ('The Company' & 'CSST')(NYSE: CSR), a leading provider of digital surveillance technology in China, today announced its intention to acquire three Chinese...


SHENZHEN, China , Aug. 1 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. ('The Company' & 'CSST')(NYSE: CSR), a leading provider of digital surveillance technology in China, today announced its intention to acquire three Chinese security and surveillance companies.

Letters of intent have recently been signed with Shenzhen Coson Electronic Co. Ltd. ("Coson"), DIT Digital Co., Ltd. ("DIT"), and Shenzhen Skyrise Technology Co., Ltd. ("Skyrise") for 100% ownership of each business. The total amount of consideration payable for all three acquisitions will be approximately RMB 268 million (approximately USD$39.1 million based on a conversion price of USD: RMB 1.00:6.86), with consideration to be paid in cash and restricted common stock. The number of China Security's shares to be included in the equity portion of the purchase price for each acquisition will be subject to the achievement of certain net income performance targets over a three-year period. All three transactions are expected to be accretive to earnings upon closing and are expected to close within 2008.

Based in Shenzhen and established in 1994, Coson is a leading intelligent access control solution provider. The company provides control access solutions to a wide ranging group of clients that include government buildings, banks, post offices, universities and large residential properties.

DIT Digital is a Zhuhai-based security product supplier that specializes in residential security solutions. Its products include CCTV security solutions and home intruder & alarm systems. DIT has an extensive international distribution network covering US, Japan and Europe . In addition, DIT retails its products under the "KARE" brand. The company is CE, UL and FCC certified.

Established in 2003, Shenzhen Skyrise Technology is a leading high-tech and software enterprise, specializing in design and development of digital and IP security videophone systems. Skyrise has R&D partnerships with Philips, Huawei Technologies Co., Ltd. and ZTE Corporation. It has been appointed as the third party design partner for Huawei Hisilicon and serves as an equipment supplier and strategic partner for China Telecom, China Netcom , and China Tie Tong.

Mr. Guoshen Tu, Chief Executive Officer of China Security commented, "We are pleased to announce these three acquisitions and believe that the products offered by each acquisition will add to our expanding range of products and services. The addition of Coson's products into our portfolio, will allow the group to begin penetrating the residential markets which will ultimately provide the customer base for our operating services business. DIT has leading security products that can expand our position further into the consumer product category. Its customer base of well known electronics retailers around the world will further expand our export opportunities. Skyrise has a well established brand in the digital and IP security videophone market. Its systems have been widely implemented in China and its product portfolio will enhance our security surveillance solutions for the residential and corporate markets. As we seek additional Safe City projects and expand our business into the residential and commercial markets, these three acquisitions will further position our company as the one-stop solutions provider for security and surveillance needs."

Mr. Tu continued, "For the remainder of 2008, we do not anticipate announcing any additional acquisitions and intend to focus on the integration of our acquisitions as well as on the continued expansion and development of our security products and service portfolio. We remain comfortable with our cash position and have sufficient funds to meet our ongoing working capital and acquisition integration needs."

About China Security & Surveillance Technology, Inc.

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