China Security & Surveillance Technology to Acquire Santachi Video Technology

SHENZHEN, China, June 24 /PRNewswire-Asia/ -- China Security &
Surveillance Technology, Inc. ("China Security" or "CSST" or the "Company")
(NYSE: CSR; Nasdaq Dubai: CSR), a leading provider of digital surveillance
technology in the PRC, today announced it has signed a letter of intent to
purchase 100% ownership in Santachi Video Technology Co., Ltd ("Santachi"), a
leading security solutions provider for highways and railways in China for
RMB150 million (approximately US$21.9 million based on an exchange rate of USD
1.00 to RMB 6.84). Completion of the transaction is subject to negotiation of
a definitive equity transfer agreement that will be subject to a number of
closing conditions, including regulatory approval.
Established in 1999, Santachi is devoted to the development,
manufacturing,
sales, material requisition, custom engineering and post-sale service of a
full range of electronic surveillance products and focuses on surveillance
solutions for highways and railways nationwide. It has consistently been named
one of the country's top 10 security brands, and its products have been
deployed in more than 30% of China's highways, according to official
statistics in 2006. Santachi is also the first company to bring forward the
concept of "Entire Closed-Circuit Television Solutions." Headquartered in
Shenzhen, Santachi has subsidiaries in over 30 cities across China, including
Beijing, Shanghai, Guangzhou, Chengdu, Urumqi, etc. Its security products
have also been exported to the United States, Europe, Brazil, Turkey, and
other countries.
In addition to its leading position in highway and railway security,
Santachi has also won various key government projects including Safe City
projects throughout China. Partnering with China Telecom, the biggest
state-owned telecommunication enterprise in China, Santachi was awarded the
Dongguan City Surveillance Project, which included the implementation of 8,000
of Santachi's video servers. Santachi also was awarded Chongqing City's Jiu
Long Po District Safe City Project, valued at approximately RMB48 million
(approximately US$7.0 million).
Mr. Guoshen Tu, Chief Executive Officer of China Security, commented, "We
are very pleased to announce the contemplated acquisition of Santachi Video
Technology, as this transaction will further expand and deepen our Safe City
business. Santachi's strong execution capability for large scale Safe City
projects complements our core strengths, while its leading position and
expertise in highways and railways can accelerate our goal of integrating Safe
City projects with major infrastructure projects. We believe that the Chinese
government's $586 billion stimulus package and accelerated pace of investments
in further expanding and upgrading the nation's vast highway and railway
network will provide additional opportunities for our business throughout the
next several years.
"The Santachi opportunity represents our continued efforts to expand our
market leadership in China's security and surveillance industry by expanding
our portfolio of integrated solutions and services. As we execute our
strategic growth plan, we aim to further consolidate our dynamic industry and
to deliver strong, sustainable, long-term financial performance, and
ultimately to reward our investors with shareholder value."
About China Security & Surveillance Technology, Inc.
Based in Shenzhen, China, China Security manufactures, distributes,
installs and services security and surveillance products and systems as well
as develops security and surveillance related software in China. Its customers
are mainly comprised of commercial and government entities and non-profit
organizations. China Security has built a diversified customer base through
its extensive sales and service network that includes over 150 branch offices
and distribution points throughout China. To learn more about the Company
visit http://www.csst.com .
Safe Harbor Statement
This press release may include certain statements that are not
descriptions of historical facts, but are forward-looking statements.
Forward-looking statements can be identified by the use of forward-looking
terminology such as 'will,' 'believes,' 'expects' or similar expressions. Such
information is based upon expectations of our management that were reasonable
when made but may prove to be incorrect. All of such assumptions are
inherently subject to uncertainties and contingencies beyond our control and
upon assumptions with respect to future business decisions, which are subject
to change. We do not undertake to update the forward-looking statements
contained in this press release. For a description of the risks and
uncertainties that may cause actual results to differ from the forward-looking
statements contained in this press release, see our most recent Annual Report
on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and
our subsequent SEC filings. Copies of filings made with the SEC are available
through the SEC's electronic data gathering analysis retrieval system at
www.sec.gov.
For more information, please contact:

Company Contact:
Terence Yap
Tel: +86-755-8351-5634
Email: ir@csst.com

Investor Contact:
ICR:
Michael Tieu
Tel: +86-10-6599-7960
Email: michael.tieu@icrinc.com

Bill Zima
Tel: +1-203-682-8200
Email: bill.zima@icrinc.com

Media Contact:
Patrick Yu
Fleishman-Hillard Hong Kong
Tel: +852-2530-2577
Email: patrick.yu@fleishman.com

SOURCE China Security & Surveillance Technology, Inc.

Company Contact: Terence Yap, +86-755-8351-5634, or ir@csst.com; Investor
Contact: ICR: Michael Tieu, +86-10-6599-7960, or michael.tieu@icrinc.com; Bill
Zima, +1-203-682-8200, or bill.zima@icrinc.com; Media Contact: Patrick Yu,
Fleishman-Hillard Hong Kong, +852-2530-2577, or patrick.yu@fleishman.com