SHENZHEN, China, October 20, 2014 /PRNewswire/ — China Information Technology, Inc. (the “Company”) (Nasdaq GS: CNIT), a leading provider of cloud-based software as service for the Chinese new media industry, today announced that it has signed a major contract to install 20,000 units of the Company’s new media terminals on behalf of the Hunan provincial government. Reoccurring monthly revenue from each new media terminal is expected to range from RMB 60 to RMB 200, depending on terminal model and location. Such revenue includes both hardware lease and software and platform service fee. These new media terminals are expected to be installed over the next three years and will display advertisement and public legal information.
Integrating the Company’s public information platform and high definition display, the CNIT new media terminals centrally manage all advertisement contents over the cloud and provide the latest government and legal information to the target audience in real time. Compared with traditional media such as outdoor ads, newspaper, radio and television, the CNIT new media terminals are superior in that they incur lower operating cost, disseminate up-to-date information and engage the audience more effectively.
CNIT signed an agreement with a leading media agency authorized by the Hunan Provincial Legal Affairs Division to install the Company’s new media terminals in the following cities and district – Shaoshan City, Changsha City, Hengyang City, Shaoyang City, Chenzhou City, Xiangyin County, and Hongjiang District. Consisting of 114 units, the first batch of new media terminals will be installed inside conference rooms, elevators, and near service windows of various government agencies. Over the next three years, the Company expects to install a total of 20,000 units of new media terminals in Hunan Province, covering airports, hotels, piers, railway and high-speed railway stations, shopping malls and other high-traffic venues.
Mr. Guangyuan Zong, Chief Marketing Officer of the Company, commented, “We are pleased that our advanced new media terminals have been selected by the Hunan government to disseminate public legal information. Winning this major contract is an acknowledgement of our product and service quality. In addition, working directly with a media agency brings reoccurring and predictable revenue and enhances our profitability. We will continue to push for geographical and sector expansion of our new media franchise.”
About China Information Technology, Inc.
Headquartered in Shenzhen, China, China Information Technology, Inc., through its subsidiaries and other consolidated entities, provides the CNIT Cloud Platform based on its proprietary Cloud-App-Terminal (CAT) model. The Company’s cloud-based products include Cloud-based Education Platform (CEP), Information Distribution Platform (IDP), Elevator Internet-of-Things Platform (EIoTP), Community Service Platform (CSP), Online Ad Exchange Platform (OAEP), etc. The Company’s integrated hardware, software, and cloud-based services serve a variety of customers in the fields of government, education, healthcare, financial, commercial, communication and individual consumers. To learn more about the Company, please visit its corporate website at http://www.chinacnit.com.
Safe Harbor Statement
This press release may contain certain “forward-looking statements” relating to the business of China Information Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein, are “forward-looking statements” in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, 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. Investors 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.
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