Beijing, Dec. 28, 2010 /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. ("Beijing Zhangcheng"), has signed a contract with the Beijing Transportation Information Center to develop a commercial operation center (the "Commercial Operation Center") to provide dynamic traffic-information services to drivers in Beijing. The contract is valued at RMB 6.2 million (approximately $0.9 million) and will be classified within the Company's traffic information service business.
According to the contract, the Commercial Operation Center will include: the traffic information-service distribution platform, a customized commuting-service demonstration system, and the launch of 500 interactive dynamic navigation terminals, which are expected to be completed by the end of 2011. The contract also includes the provision of two-years of traffic-information service via the 500 terminals starting in 2011. After two years' time, Beijing Zhangcheng will continue to provide traffic-information services at market price.
On December 23, 2010, the Beijing government unveiled new measures to ease the city's increasingly severe traffic congestion. According to the new regulations, Beijing will strengthen the role of traffic information and services to counter traffic congestion and smooth traffic flow. The Commercial Operation Center is expected to help alleviate the city's mounting urban transportation issues and foster the development of the market for consumer-oriented traffic information services.
"We're very delighted to participate in the construction of the Commercial Operation Center, especially to provide terminal-based traffic information services," said Mr. Shudong Xia, Chairman and Chief Executive Officer of China TransInfo. "Our selection is a strong validation of our technology and service capabilities. The government's increased investment in traffic information services will continue to support the development of our industry."
"Since Beijing Zhangcheng's related platform, system and terminals have almost been finalized and meet the requirements of the Commercial Operation Center, we estimate that this contract can achieve 80% gross margins. In addition, the launch of 500 terminals represents the beginning of our offering paid traffic-information services in the Beijing market. The 500 interactive navigation terminals will also comprise a data source, which we will use to further improve the quality of our traffic-information service."
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 fleet management 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," "plans" 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.
Investor Relations Contact:
Ms. Fan Zhou, Investor Relations Director
Mr. Athan Dounis
China TransInfo Technology Corp.
SOURCE China TransInfo Technology Corp.