Represents First Significant Contract Outside of the Fujian Province
HONG KONG, April 30 /Xinhua-PRNewswire-FirstCall/ -- China Expert Technology, Inc. (OTC Bulletin Board: CXTI), an emerging leader in providing large scale network infrastructure construction mainly for e-腾讯娱乐government projects for communities and municipal governments in China, today announced the Company has been awarded a new contract to construct e-government systems for Xi'an city government, located in the Shaanxi province of China. The total contract value is $48 million while the net contract sum after excluding hardware purchases on behalf of customer and PRC business tax is $42.4 million, which the Company will now be recording into backlog. A consultant who facilitated this new project is due a 5 percent commission based on the net contract sum, payable in approximately 323,000 shares of the Company's common stock, with 80 percent of the shares payable now and 20 percent payable upon project commencement.
The project is tentatively expected to commence in September 2007 and be completed within 30 months from initiation. Under the terms of the contract, China Expert Technology will be responsible for design and implementation of the following systems:
* Hardware Platform Integration
* Security Platform
* Application Platform
* Unified Administration Approval System
* Portal Website
* Coordinated Office System
* Geographical Information System
* Emergency Commanding System
* Auxiliary Decision System
* Financial Control System
* Social Medical Security Information System
* Smart Card System
* Information Database
* e-Commerce System
Mr. Huang Tao, Chairman of the Board of Directors of China Expert, stated, "This new contract win represents a significant milestone for the Company by being our first major contract awarded outside the Fujian province. One of our major goals for 2007 was to expand into new cities and provinces and we are pleased that our efforts have enabled us to begin winning business in these new markets. We expect to utilize these higher profile project implementations to secure incremental future contracts both in Fujian and throughout China."
About the e-government project:
The e-government project is aimed at establishing a national electronic government system, in which existing and expected government networks and applied systems can be combined to form united technology standards and regulations and consequently a united national government service platform. The term e-government is a process in which the government is able to take advantage of modern information and communication technologies to integrate the management and service of government functions on the Internet, optimize and reform the government structures and working processes, and provide good and standard international administration and service to the society without time and space limitation.
About China Expert Technology, Inc:
CHINA EXPERT TECHNOLOGY, INC. ("CXTI") is a company listed on the OTC Bulletin Board in the USA (Trading Symbol: CXTI), with its subsidiaries (collectively the "Group") situated in Hong Kong and China. The group is specialized in providing large-scale network infrastructure construction (mainly e-government projects) for communities and municipal governments in China. The Group also utilizes its network with experts from various universities in China to deploy business and IT consultancy services to corporations in Hong Kong and China. The Group'AAAAisting major clients includes municipal governments, government authorities and other technology firms in China. Its income is derived mainly from four areas, e-government, technology achievement appraisal, expert consultation and project database.
Safe Harbor under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this press release are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results directly and indirectly related to this contract with the Xi'an City, the regulatory and approval processes for this and other signed and pending contracts, the impact of competitive products on pricing, technological changes, the effect of economic conditions and other uncertainties as may be detailed in the Company's filings with the Securities and Exchange Commission.
For more information, please contact:
For the Company: Investors:
Phoebe Lam Matthew Hayden
China Expert Technology, Inc. Hayden Communications, Inc.
Tel: +852-2802-1555 Tel: +858-704-5065
Fax: +852-2583-9222 E-mail: Matt@haydenir.com