China Security wins $114M contract

    Story highlights
  • $114M contract for surveillance
  • CSS&S will build telecom infrastructure
  • Company gets rights to sell advertising on surveillance cameras' poles
  • Deal boosts company's stock price

NEW YORK - China Security & Surveillance Technology Inc., which provides digital surveillance technology, said Thursday it has won a bid from Jining City, China, to install security cameras and related equipment for about $114 million.

As part of the agreement, China Security will subcontract the build out the city's telecom infrastructure.

The company expects to realize revenue from this contract in 2008, with the majority of revenue to be recognized the following year.

Additionally, China Security will have rights to place advertising banners on the surveillance camera poles throughout the city and will have a right to provide security-related services under a separate contract.

Based in the Shandong province, Jining City has a population of about 8.1 million.

China Security shares jumped $1.31, or 8.2 percent, to $17.32 in morning trading. Shares have traded between $10.54 and $35.35 in the past 12 months.

Copyright 2008 Associated Press. All rights reserved. This material may not be published broadcast, rewritten, or redistributed