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China Information Security Technology, Inc. Issues Guidance & Discuss Outlook for 2009
Date:11/13/2008

SHENZHEN CITY, China, Nov. 13 /Xinhua-PRNewswire-FirstCall/ -- China Information Security Technology, Inc., (Nasdaq: CPBY) ("China Information Security," "CIST" or the "Company"), a leading application software developer, systems integrator and full-service Geographic Information Systems ("GIS") solutions provider to public security and civil-use markets in China, today issued guidance for 2009.

China Information Technology has targeted revenue for 2009 of $107.5 million, an increase of approximately 26.5% from the stated goal of $85.0 million in the year 2008. Pro-forma net income is estimated at $32.9 million for 2009, representing a 21.9% increase from the Company's target of $27.0 million for 2008. Pro-forma earnings per share is estimated at $0.70 for 2009, up 25% from the Company's earnings per share target of $0.56 for 2008. The estimated pro-forma net income and earnings per share estimates for 2008 and 2009 exclude any non-cash expenses as a result of employee stock awards in 2008 and 2009 and amortization of intangible assets associated with recent acquisitions.

The Company expects to maintain a healthy growth rate through 2009 despite the current economic slowdown worldwide due to the end markets it serves. In November, China's State Economic Council unveiled a stimulus plan of approximately $586 billion for infrastructure projects aimed at boosting domestic demand.(1) In addition, the Guangdong Provincial Development and Reform Commission has indicated that Guangdong Province will spend $347 billion in the next five years to stimulate demand.(2) The Company's product mix is positioned to target city infrastructure planning so these recent announcements should work to its benefit. More important, the Company expec
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SOURCE China Information Security Technology, Inc.
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