BEIJING, April 4, 2011 /PRNewswire-Asia-FirstCall/ -- China TransInfo Technology Corp. (NASDAQ: CTFO) ("China TransInfo" or the "Company"), a leading provider of comprehensive intelligent transportation solutions and traffic information services in China through its affiliate, China TransInfo Technology Group Co., Ltd. (the "Group Company"), today announced that the Group Company's subsidiary, Beijing Zhangcheng Science and Technology Co., Ltd. ("Palmcity"), has recently signed a development agreement with Nissan Motor Co., Ltd. ("Nissan") to work on a New Energy and Industrial Technology Development Organization (NEDO) project, which is the first national cooperation between China and Japan aimed at improving the use of energy efficiency and protecting the environment in China through the application of a New Traffic Information System. The two-year agreement is valued at JPY340.9 million, or approximately $4.1 million.
According to the agreement, Palmcity will be responsible for developing and managing an Open Verification System, User Recruitment Service, and Real Time Traffic Information Interface, which will be used for verification of a new traffic information system (the "System"). The development of the system is expected to be completed by October 2011, and put it into operation immediately afterwards. In addition to providing traffic information services, the System will provide suggestions for drivers based on their driving behavior so they can save energy. Upon the completion of the System's construction, China TransInfo will provide dynamic traffic information services for 12,000 PND (portable navigation device) users who are connected to the System and 600 Nissan on-board terminal users in Beijing.
Nissan and its affiliates will contribute the required technology that is fully commercialized in Japan to build the System. All jointly developed technology and intellectual property will be jointly owned by Palmcity and Nissan upon the completion of the project. China TransInfo expects to provide traffic information services for additional users based on this System.
"We are excited about our cooperation with Nissan regarding the new traffic information system, which will bring us mature navigation products with the Eco Management System featuring the latest technologies from Japan," said Mr. Shudong Xia, Chairman and Chief Executive Officer of China TransInfo. "In addition, the project will bring us an opportunity to develop a new set of Telematics Service Provider (TSP) platform and service verification systems that can be commercialized, as well as 12,600 new users. We believe these products and users will help create a differentiating advantage for our Company in the traffic information services segment. As this TSP service platform will be the only third-party TSP service platform in the Chinese market, China TransInfo is well positioned to expand its business model for traffic information services based on its operational expertise. The cooperation will also give us a priority status as Nissan's vendor. "
About China TransInfo
China TransInfo, through its affiliate, China TransInfo Technology Group Co., Ltd., (the "Group Company") and the Group Company's PRC operating subsidiaries, is primarily focused on providing urban and highway transportation management solutions and information services. The Company is a leading transportation information products and comprehensive solutions provider, and aims to be the largest real time transportation information service provider and major commercial vehicles service provider in China. As the co-formulator of several transportation technology \national standards, the Company owns five patents and has won a majority of the model cases awarded by the PRC Ministry of Transportation. As a result, the Company is playing a key role in setting the standards for transportation information solutions in China. For more information, please visit the Company's website at http://www.chinatransinfo.com.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements". 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. You 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 TransInfo Technology Corp.