China Security & Surveillance Technology, Inc. Completes Jin Lin Acquisition

SHENZHEN, China , July 11 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (the "Company" or "CSST") (NYSE: CSR), a leading provider of digital surveillance technology in China , today announced that it has completed the...


SHENZHEN, China , July 11 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. (the "Company" or "CSST") (NYSE: CSR), a leading provider of digital surveillance technology in China , today announced that it has completed the acquisition of Long Top Limited, a Hong Kong corporation. Long Top is a holding company and has no operations and assets other than its 100% ownership of Shenzhen Jin Lin Technology Co., Ltd. ("Jin Lin"). CSST originally announced an LOI to acquire this business on October 16, 2007 .

Under the equity transfer agreement, the Company will pay a total amount of RMB 68,581,647 (approximately USD$10.0 million) in exchange for 100% ownership of Long Top , consisting of RMB 40,000,000 (approximately USD$5.83 million) in cash and RMB 28,581,647 (approximately USD$4.17 million) in shares of the Company's common stock. The number of shares issuable in satisfaction of the equity portion of the purchase price is 268,870 (based upon USD$15.5035 per share, which is the 20-day average closing price of the Company's stock prior to the signing of the equity transfer agreement) which will be issued within 90 days following the execution of the equity transfer agreement. The Company has paid off RMB 13 million (approximately USD$1.90 million) of the cash portion of the purchase price, the remaining RMB 27 million (approximately USD$3.93 million) of the cash consideration will be paid in several installments upon Jin Lin's achievement of certain net income thresholds from 2008 to 2010. The sole shareholder of Long Top also pledged a total of 215,096 shares of the equity portion of the purchase price to secure the achievement of such net income thresholds. The minimum after tax net income threshold for fiscal year 2008 is RMB 12 million (approximately USD$1.75 million). The minimum after tax net income target for fiscal year 2009 is RMB 15 million (approximately USD$2.19 million). The minimum after tax net income target for fiscal year 2010 is RMB 20 million (approximately USD$2.92 million).

Jin Lin, based in Shenzhen , provides professional intelligent security monitoring systems and specializes in intelligent transportation system (ITS) product development. Its product applications include electronic police systems and traffic junction controls (software and hardware manufacturer). This business also compliments China Security's existing suite for Safe City projects. Jin Lin was recently awarded the Shenzhen High-Tech Enterprise certificate.

Mr. Guoshen Tu, Chief Executive Officer of China Security commented, "We are excited to be acquiring a leading traffic management system provider. We officially welcome the Jin Lin executive management team to our company and look forward to their future contributions. Our reputation as a leading total solutions provider for security and surveillance needs continues to resonate with many local governments and businesses throughout China . This acquisition of Jin Lin further strengthens our total solutions offering and reinforces our leadership position in the market."

The monetary exchange rate used for this transaction is US$1.0=RMB6.86

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 .

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