China TransInfo Expands into Intelligent Transportation Systems for Expressways

BEIJING, Sept. 15 /PRNewswire-Asia-FirstCall/ -- China TransInfo
Technology Corp., (Nasdaq: CTFO), ("China TransInfo" or the "Company"), a
leading provider of public transportation information systems technology and
comprehensive solutions in the People's Republic of China ("PRC"), today
announced that it expanded further into the transportation systems market in
China through an indirect investment in Beijing UNISITS Technology Co. Ltd
("UNISITS").
Established in 2002 and headquartered in Beijing, UNISITS is a leader in
China's intelligent transportation systems industry. UNISITS primarily
provides traffic engineering E&M systems for expressways in China. Presently,
the company has penetrated over 20 provinces with an accumulated coverage of
over 8,000 kilometers of expressways in China. Through its close cooperation
with Tsinghua University, UNISITS has developed an expressway weigh-in-motion
system and lighting control system, both of which have been widely applied in
a number of provinces in China.
In addition, UNISITS provides intelligent transportation products and
services to railways, and urban transportation markets. UNISITS has also
developed a comprehensive nationwide service network to provide technical
assistance for its products. In 2008, UNISITS generated approximately $32.2
million in revenue and $3.8 million in net income.
On September 8, 2009, Mr. Shudong Xia, Chairman and Chief Executive
Officer of China TransInfo, executed agreement to acquire a 35.17% equity
interest in UNISITS from Unisplendour Corporation Limited ("Unisplendour")
with a cash payment of RMB 44.4 million (approximately $6.5 million).
Subsequently, on September 8, 2009, China TransInfo Technology Group Co., Ltd,
a variable interest entity of China TransInfo (the "Group Company") entered
into an option agreement with Mr. Xia, under which Mr. Xia granted to the
Group Company a perpetual option to acquire all of Mr. Xia's equity interest
in UNISITS for RMB 44.4 million (the "exercise price"). The exercise price of
the option was prepaid upon the granting of the option. Concurrently, the
Group Company acquired from Mr. Xia the rights to his share of all potential
UNISITS dividends or other distributions. As a result, the Company will begin
recording 35.17% of UNISITS net income (loss) in the Company's financial
statements, effective the third quarter of 2009, since Mr. Xia pledged his
equity interest in UNISITS to the Group Company for five years. The Group
Company expects to exercise the option and take title to the equity interest
now held by Mr. Xia upon the expiration of the five-year term of the pledge
agreement when the option will first become exercisable. The transaction is
expected to be accretive to earnings beginning in the third quarter of 2009.
"We are very excited to partner with UNISITS and expect to see numerous
synergies from being able to leverage our shared technology and market
channels over a larger addressable market," commented Mr. Xia. "With the
continued support of the Chinese government, we anticipate China's intelligent
transportation market will experience rapid growth during the next several
years. By leveraging UNISITS' large presence in the expressway market with our
leadership in the urban transportation market, we can better penetrate markets
for our current products and services. Furthermore, this partnership will also
help us to gain access to expressways real time traffic information, tapping
China's expressway information services market."
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 transportation information
services and comprehensive solutions based on GIS technologies. The Company
aims to become the largest transportation information products and
comprehensive solutions provider, as well as the largest real time
transportation information platform operator and provider in China. In
addition, the Company is developing its transportation system to include
Electronic Toll Collection (ETC) technology. As the co-formulator of several
transportation technology national standards, the Company owns software
copyrights for 92 software products and has won 5 of the 10 model cases
sponsored by the PRC Ministry of Communications. The Company's affiliation
with Peking University provides the Company access to the University's GeoGIS
Research Laboratory, including 30 Ph.D. researchers. As a result, the Company
is playing a key role in setting the standards for electronic transportation
information solutions. 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.
For more information, please contact:

Company Contact:
Ms. Fan Zhou, Investor Relations Director
China TransInfo Technology Corp.
Tel: +86-10-8267-1299 x8033
Email: ir@ctfo.com

Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: +1-646-213-1915 (NY office)
Email: crocker.coulson@ccgir.com
Web: http://www.ccgirasia.com

SOURCE China TransInfo Technology Corp.

Company Contact: Ms. Fan Zhou, Investor Relations Director, China TransInfo
Technology Corp., +86-10-8267-1299 x8033, or ir@ctfo.com; or Investor
Relations Contact: Mr. Crocker Coulson, President, CCG Investor Relations,
+1-646-213-1915 (NY office), or crocker.coulson@ccgir.com