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China Information Security Tec

China Information Security Technology (CIST), a total solutions provider of digital security, geographic information, and hospital information systems in China, announced that its newly signed contracts in the fourth quarter of 2009 were valued at a record high of approximately US$36.73 million, an increase of over 22 percent, compared to the contracts signed during the third quarter of 2009, and an increase of 30 percent compared to the fourth quarter of 2008.

In a release dated January 14, the company stated:

During the fourth quarter of 2009, the company won contracts from clients in 19 provinces and provincial cities in China out of its current market presence in 32. Some important contracts secured in the fourth quarter included:

-- $10 million contract for Phase III of the Shenzhen Residence Card

Information Management System

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-- $2.3 million contract for the GIS Display System for Shanghai Zhiying

Electronics

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-- $1.8 million contract for the Police-use GIS for Hainan Province Public

Security Department

-- $1.3 million contract for the Haikou City Medical Emergency Rescue

Center Consolidated Command System

-- $0.5 million contract for the Geographic Information Public Service

Platform for the Shanxi Province Geographic Information Center

-- $0.6 million contract for the Shenzhen Maternal and Child Health

Hospital Data Sharing and Exchange Service Platform

Of this quarter's contracts, excluding those of Huipu, 56 percent were for the company's Digital Information Security Technology ("DIST") products, 39 percent were for its Geographic Information Systems ("GIS") products and 5 percent related to its Digital Hospital Information Systems ("DHIS") products. Management expects that the majority of these contracts will be recognized as revenue in 2010.

Jiang Huai Lin, Chairman and CEO of the company, said, "We are very excited about our record high contract wins in the fourth quarter. The momentum we have been gaining this year from the increased bidding and spending activities of our local governmental customers has repeatedly pushed our contract wins to new record highs each quarter. We believe that this constant growth reflects further customer recognition of the quality of our industry-leading solutions in our core business segments: DIST, GIS and DHIS, all of which have experienced strong growth this quarter. We are particularly pleased with the large contract win from the Shenzhen Municipal Government, who has awarded us with contracts for all three phases of the Shenzhen Residence Card Information Management System project, which we believe reflects the degree of satisfaction and trust they have in us and the work that
embroidered patches we have done for them. We expect that these contract wins and the level of our past performance will provide us with a competitive edge as we continue to grow our business throughout China."

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