Published: April 02, 2008
China Security & Surveillance Technology Completes Two Acquisitions
SHENZHEN,China, April 2, 2008 /Xinhua-PRNewswire/ --China Security &
Surveillance Technology, Inc. (the "Company" or ''CSST'') (NYSE: CSR), a
leading provider of digital surveillance technology inChina, today announced
that it has completed the acquisition of two Chinese companies, Stonesonic
Digital Technique Co., Ltd. (''Stonesonic'') and Longhorn Security Technology
Co., Ltd. (''Longhorn'').
Under the terms of the acquisition of Stonesonic, the total consideration
is RMB227,037,605 (approximately US$32.4 million) comprised of 55% cash and
45% restricted common stock. The issuance ofChina Security's shares included
in the equity portion of the purchase price for the Stonesonic acquisition
will be subject to the achievement of certain net income performance targets
over a two year period, including a 2008 net income guarantee of RMB 35
million (approximately USD $5.0 million).
Stonesonic, founded in 1993 and based in Chaozhou, Guangdong Province, is
a leading monitoring equipment hardware manufacturer. This business will
complimentChina Security's existing product suite for Safe City projects.
Stonesonic has received its High-tech Enterprise Certificate as well as 3111
product recognition.
Under the terms of the acquisition of Longhorn, the total consideration is
RMB120,557,510 (approximately US$17.2 million) comprised of 30% cash and 70%
restricted common stock. The issuance ofChina Security's shares included in
the equity portion of the purchase price for the Longhorn acquisition will be
subject to the achievement of certain net income performance targets over a
two year period, including a 2008 net income guarantee of RMB 18 million
(approximately USD $2.56 million).
Longhorn specializes in the manufacture and installation of security alarm
systems inChina. Longhorn's security alarm systems will complimentChina
Security's existing suite of security and surveillance system installations in
China, allowingChina Security to provide a more comprehensive security
solution.
Mr. Guo Shen Tu, Chief Executive Officer ofChina Security commented, ''We
are pleased to close these transactions, each of which will further strengthen
our presence in China's growing security market.
Stonesonic is a leading monitoring equipment solutions provider inChina
that has a broad array of large flat panel display equipment. This addition
to our product portfolio will provide us with a more comprehensive solution
for Safe City projects with local governments. As one of China's leading
alarm system manufacturers, Longhorn will allowChina Security to move further
into alarm monitoring for Safe City projects. It will also provide us the
opportunity to penetrate the residential alarm monitoring service for our
service division.
We are pleased that the Stonesonic and Longhorn acquisitions will be
accretive immediately to earnings and believe that each of the transactions
announced today will further strengthen our overall service offering and
expand our geographic presence inChina. We look forward to working with the
senior management teams at each of these companies and are confident that
their contributions will be meaningful to our business going forward. As the
emerging leader in China's security industry, we remain highly encouraged with
CSST's overall prospects for growth.''
The monetary exchange rate used for each transaction is US$1.0=RMB 7.01.
AboutChina 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 located inChina and an R&D
facility which maintains an exclusive collaboration agreement withBeijing
University.China Security has built a diversified customer base through its
extensive sales and service network that includes numerous points of presence
throughoutChina. 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.
These forward-looking statements may also include statements about our
proposed discussions related to our business or growth strategy, which is
subject to change. 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 (EDGAR) at http://www.sec.gov .
For more information, please contact:
Company Contact:
Kewa Luo
Tel: +1-212-588-0885
Email: ir@csst.com
Investor Contact:
ICR: Bill Zima & Ashley Ammon MacFarlane
Tel: +1-203-682-8200
SOURCEChina Security & Surveillance Technology, Inc.
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