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CXTI - China Expert Technology Signs Two New e-Government Contracts in China with Anticipated Revenues of $45.3 million
May 16, 2007 12:58:00 PM
HONG KONG, May 16 /Xinhua-PRNewswire/ -- China Expert Technology, Inc. (OTC Bulletin Board: CXTI), an emerging leader in providing large scale network infrastructure construction mainly for e-government projects for communities and municipal governments in China, today announced that the Company has been awarded two new contracts to construct e-government systems for two city governments, located in the Fujian province of China.

Huian City 2nd Phase Contract with anticipated revenues of $33 million

The total anticipated revenues are $33 million, while the net revenue after PRC business tax is $31.6 million. The project is tentatively expected to commence in June 2007 and be completed by January 2008. Under the terms of the contract, China Expert Technology will be responsible for design and implementation of the following systems:

-- Smart Card System
-- Social Medical Security Information System
-- Promotional Use of e-government Application System
-- e-Commerce System
Nan'an City 3rd Phase Contract with anticipated revenues of $12.3 million

The total contract value is $12.3 million while the net revenues after PRC business tax is $11.7 million. The project is tentatively set to commence in June 2007 with an expected completion date of January 2008. China Expert Technology will be responsible for design and implementation of the e-Commence system for the city government.

Mr. Huang Tao, Chairman of the Board of Directors of China Expert, stated, "We are pleased to win two new contracts in the Fujian Province as we believe this region still represents fertile ground for new contract wins. Additionally, given this contract's expected start date in June and the anticipated length until completion we believe this significantly reinforces our ability to achieve our financial guidance for 2007 of $72 to $74 million in revenue and $20 to $21 million in net income."

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 this contract with the Xi'an City, the regulatory and approval processes for this and other signed and pending contracts, the impact of competitive products on pricing, technological changes, the effect of economic conditions and other uncertainties as are, and may be, detailed in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K.

For more information, please contact:
For the Company: Investors:
Phoebe Lam Matthew Hayden
China Expert Technology, Inc. Hayden Communications, Inc.
Tel: [phone] Tel: [phone]
Fax: [phone] Email: [e-mail]
Email: [e-mail]

SOURCE China Expert Technology, Inc.



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Phoebe Lam of China Expert Technology
Inc.
Tel
[phone]
or Fax
[phone]
or [e-mail]
or investors
Matthew Hayden of Hayden Communications
Inc.
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or [e-mail]
for China Expert Technology
Inc.