This contract win further builds on the Company's dominant market position in Guangdong Province and expands the Company's ongoing implementation of its Police-Use Geographic Information System ("PGIS") platform across China.

The Company expects that each PGIS roll-out in a new city will provide follow-on contract and maintenance service opportunities with the potential to generate additional revenues for the Company.

China Information Security provides PGIS customers with specialized GIS services, including specialized mapping, geographic positioning, messaging, automated police patrol area monitoring, patrol history tracking and work hour management.

Successful implementation of the PGIS platform also provides an opportunity for CIST to deliver ongoing systems operation and support services, as well as application interface services that enable interaction between the PGIS platform and other infrastructure applications currently in use by the PGIS customer.

"The Heyuan PGIS win demonstrates the continuing strength of our technological capabilities and market leadership position," commented Mr. Jiang Huai Lin, CEO of China Information Security.

"We are actively pursuing market expansion opportunities across China, while maintaining our dominant position in Guangdong Province. We expect that with each successive PGIS win, we will outpace our competitors, as we gain additional experience and enhance our brand recognition."

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