SHENZHEN, Oct. 19 /PRNewswire-Asia-FirstCall/ -- China Information Technology, Inc., (Nasdaq: CNIT), a leading total solutions provider of Geographic Information Systems (GIS), digital public security and hospital information systems in China, today announced that its subsidiaries, Information Security Software (China) Co., Ltd. ("ISS") and Shenzhen Zhongtian Technology Development Co., Ltd. ("Zhongtian"), were each granted "National High-Tech Enterprise" status ("National HT Status") by the PRC government, as approved by the Ministry of Science and Technology of China, the Ministry of Finance and the State Administration of Taxation.
National HT Status is awarded by the PRC government to recognize companies that are technological leaders in their fields and industries, consistently invest in new product development and have substantial revenues generated by their own proprietary patented or innovative products. Award recipients benefit from a series of preferential tax policies that are created by the government to encourage domestic and foreign investment in advanced technologies in China, and to stimulate and promote the production of high-tech products and the provision of high-tech related services and technology in China.
According to relevant regulations issued by the State Administration of Taxation and the China Banking Regulatory Commission, companies with National HT Status are eligible for a number of significant benefits, including lower tax rates (a decrease from 25% to 15%), preferential treatment in obtaining financial support from the national Technological Development Fund, and receipt of competitive commercial bank loans and subsidized interest rates. Zhongtian's and ISS's National HT Status will last three years, after which the status will be reviewed for renewal. In 2009, four other CNIT subsidiaries, Information Security Technology (China) Co., Ltd, Shenzhen Bocom Multimedia Display Technology Co., Ltd., iASPEC Software Co., Ltd. and Wuda Geoinformatics Co., Ltd., were granted National HT Status. As a result, six of CNIT's seven operating subsidiaries now enjoy National HT Status.
"We are very pleased to announce the recognition of another two of our subsidiaries as national high-tech enterprises, bringing to six the number of our subsidiaries that have now achieved this esteemed status," remarked Mr. Jiang Huai Lin, Chairman and CEO of the Company. "We expect that this award will provide us with additional tax benefits, government funding and public policy support, and better position us to compete for bids on government contracts. We plan to leverage these high-tech capabilities to build our brand name and continue developing technological innovations."
About China Information Technology, Inc.
China Information Technology, Inc., through its subsidiaries and other consolidated entities, specializes in Geographic Information Systems (GIS), digital public security and hospital information systems, with the goal of being the largest GIS software provider in China. Headquartered in Shenzhen, China, the Company's total solutions include specialized software, hardware, systems integration, and related services organized into three business segments – Geographic Information Systems, Digital Information Security Technology (DIST), and Digital Hospital Information Systems (DHIS). To learn more about the Company, please visit its corporate website at http://www.chinacnit.com.
Safe Harbor Statement
This press release may contain certain "forward-looking statements" relating to the business of China Information Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the significance of the National High-Tech Enterprise certification by the PRC government and the expected tax benefits, government funding and public policy support; the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries, including the ability to leverage its high-tech capabilities to build a brand image, continue development of technological innovations by taking advantage of government funding and grant incentives and continue to gain momentum for future growth; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
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SOURCE China Information Security Technology, Inc.