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China Expert Technology Signs Two New e-Government Contracts in China Totaling $60 million
Thursday December 14, 10:09 am ET
12 New e-Government Contracts Awarded Year-to-Date with a Total Contract Sum of $201.5 million
HONG KONG, Dec. 14 /Xinhua-PRNewswire-FirstCall/ -- China Expert Technology, Inc. (OTC Bulletin Board: CXTI - News), an emerging leader in providing large scale network infrastructure construction mainly for e-government projects for communities and municipal governments in China, today announced the Company has been awarded two new e-government contracts to construct e-government systems for Quanzhou City and Fuzhou City, both located in the Fujian Province.
Quanzhou City Quangang District Contract valued at $34 million
Implementation and services will commence July 2007 with an expected completion date of August 2010. The net contract sum after excluding hardware purchases on behalf of the customer and PRC Value Added business tax is $30.8 million. A consultant who facilitated this project is due a cash fee of approximately $1.9 million, payable within twenty business days from the contract signature date.
Fuzhou City Pingtan County Contract valued at $26 million
Implementation and services will commence in October 2007 with an expected completion date of September 2010. The net contract sum after excluding hardware purchases on behalf of the customer and PRC Value Added business tax is $22.4 million. A consultant who facilitated this project is due a cash fee of approximately $1.2 million, payable within twenty business days from the contract signature date.
Under the terms of the two contracts, China Expert Technology will be responsible for design and implementation of the following systems:
* Hardware Platform Integration
* Security Platform
* Application Platform
* Portal Website
* Unified Administration Approval System
* Coordinated Office System
* Calling Center
* Geographical Information System
* Emergency Commanding System
* Auxiliary Decision System
* Social Medical Security Information System
* Smart Card System
* Information Database
* e-Commerce System (for Quanzhou City Quangang District only)
Mr. Huang Tao, Chairman of the Board of Directors of China Expert, stated, "Our sales momentum in the Fujian Province continues to accelerate with these two new significant contract wins. This new business is a direct result of our prior success in the region and the Company's decision to target this large and still under penetrated opportunity. These contracts have implementation timeframes spanning three years, which further improves both our visibility and confidence in our future growth prospects."
About the e-government project:
The e-government project is aimed at establishing a national electronic government system, in which existing and expected government networks and applied systems can be combined to form united technology standards and regulations and consequently a united national government service platform. The term e-government is a process in which the government is able to take advantage of modern information and communication technologies to integrate the management and service of government functions on the Internet, optimize and reform the government structures and working processes, and provide good and standard international administration and service to the society without time and space limitation.
About China Expert Technology, Inc:
CHINA EXPERT TECHNOLOGY, INC. ("CXTI") is a company listed on the OTC Bulletin Board in the USA (Trading Symbol: CXTI), with its subsidiaries (collectively the "Group") situated in Hong Kong and China. The group is specialized in providing large-scale network infrastructure construction (mainly e-government projects) for communities and municipal governments in China. The Group also utilizes its network with experts from various universities in China to deploy business and IT consultancy services to corporations in Hong Kong and China. The Group's existing major clients includes municipal governments, government authorities and other technology firms in China. Its income is derived mainly from four areas, e-government, technology achievement appraisal, expert consultation and project database.
Safe Harbor under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results directly and indirectly related to these contracts with the Quangang District of Quanzhou City and Pingtan County of Fuzhou City, the regulatory and approval processes for these and other signed and pending contracts, the impact of competitive products on pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission.
For more information, please contact:
For the Company: Investors:
Phoebe Lam Mathew Hayden
China Expert Technology, Inc. Hayden Communications, Inc.
Tel: +852-2802-1555 Tel: +858-704-5065
Fax: +852-2583-9222 E-mail: Matt@haydenir.com
Email: phoebe@chinaexpertnet.com
