China Information Technology Inc. Secures Contract Wins of Over $30 Million in the Second Quarter of 2011

SHENZHEN, China, July 15, 2011 /PRNewswire-Asia-FirstCall/ -- China Information Technology, Inc. (Nasdaq: CNIT), a leading provider of information technologies and display technologies based in China, today announced that it signed $30.4 million in new contracts during the second quarter of 2011. The Company's core IT business segment contributed 65%, or $19.8 million, of the total contract wins, while its Digital Display segment contributed 35%, or $10.6 million.

The Company's second quarter contract wins came from 28 provinces and provincial cities in China. Some of the important contracts secured include:

-- $3.5 million for additional works with the Shenzhen Traffic Police Bureau. The contract includes the design and creation of three tailored traffic management systems: the "On-Stop Driving License Processing System," the "Consolidated Vehicle-Related Business Auditing and Monitoring System," and the "Vehicle Inspection and License Plate Management System," respectively;

-- $2.4 million for a follow-on project for the Shenzhen Police TETRA system;

-- $1.8 million for a follow-on project for the Shenzhen Summer Universiade security management system; and

-- $1.7 million for a follow-on project for the Shenzhen - Hong Kong border e-Channel systems.

Mr. Jiang Huai Lin, Chairman and CEO of the Company, commented, "We experienced some weakness in terms of signing new contracts in the second quarter this year. The reasons for this were twofold, firstly, a number of government projects have been slowed as a result of recent monetary tightening measures in China, and secondly, we have been more discerning in the contracts we sign due to previously stated efforts towards improving the quality of our earnings. We have become more selective with the profitability and accounts receivable turnover of our projects. At the same time, our Digital Display business segment contributed 35% of the contract value this quarter, which reaffirms our decision earlier this year to expand this area of our business. Despite the slowdown in our information technology contracts, we believe there will be continuing opportunities for us in both business segments."

About China Information Technology, Inc.

China Information Technology, Inc., through its subsidiaries and other consolidated entities, specializes in information technologies and display technologies. Headquartered in Shenzhen, China, the Company's integrated solutions include specialized software, hardware, systems integration, and related services.  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 second quarter 2011 contract wins to the Company's business and the Company's ability to successfully fulfill its obligations under the contracts; the general ability of the Company to achieve its commercial objectives, including the Company's plan to sustain the growth while creating shareholder value; the business strategy, plans and objectives of the Company and its subsidiaries; 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.

SOURCE China Information Technology, Inc.