June 24, 2008
China Precision Steel Products Awarded Technological Achievements Certifications
SHANGHAI, China, June 24 /Xinhua-PRNewswire/ -- China Precision Steel (the ''Company'') , a niche precision steel processing company principally engaged in producing and selling high precision cold-rolled steel products, today announced that the Company's ultra-thin and high-strength cold-rolled steel strip products were awarded ''Project Converting Advanced New Technological Achievements into Productivity'' certifications by the Shanghai Municipal Office for Converting Advanced New Technological Achievements into Productivity in June 2008.
China Precision Steel's ultra-thin cold-rolled and high-strength cold- rolled strip products utilize patented systems and high technology reduction processing procedures. The certifications include about half of the Company's ultra-thin and high strength cold-rolled products, used in the manufacture of automobile parts and components, steel roofing, plane friction discs, appliances, food packaging materials, saw blades, textile needles, and microelectronics. Receiving these certifications allows China Precision Steel to take advantage of the preferential treatment provided under the provisions of the Chinese government's Science and Technology Ministry. Benefits include financing for accredited projects at a discounted interest rate, refunds of land use fees related to accredited projects and special tax treatment for corporate and value added taxes by local tax authority, subject to further approval.
''We focus our efforts on utilizing advanced technology for developing quality products, and the receipt of this prestigious certification recognizes our strength and capabilities,'' commented Dr. Wo Hing Li, China Precision Steel's Chairman and CEO. ''With further approval, by receiving these certifications, we will be able to take advantage of the provisions of the Science and Technology Ministry which will help us deploy our capital more effectively and expand our high-end product offerings."
Shanghai Municipal Office for Converting Advanced New Technological Achievements into Productivity is involved in setting long-term science and technology development policies in Shanghai. The office has established an accrediting system for projects with the purpose of converting advanced new technological achievements into productivity. Companies are certified on the basis of technological grade, market prospects, risks and intellectual property of projects in Shanghai. Certification is valid for one year.
About China Precision Steel
China Precision Steel is a niche precision steel processing company principally engaged in the production and sale of high precision cold-rolled steel products and provides value added services such as heat treatment and cutting medium and high carbon hot-rolled steel strips. China Precision Steel produces high precision ultra-thin, high strength (7.5 mm to 0.05 mm) cold- rolled steel products primarily for automotive components, food packaging materials, saw blades and textile needle manufacturing companies in the People's Republic of China. However, China Precision Steel is expanding into overseas markets such as Nigeria, Thailand, Indonesia and the Philippines, and intends to expand into Japan, the European Union and the United States in the future.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Precision Steel on its conference call in relation to this release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding our ability to prepare the company for growth, the Company's planned manufacturing capacity expansion in 2008 and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which China Precision Steel is engaged; cyclicality of steel consumption including overcapacity and decline in steel prices, limited availability of raw material and energy may constrain operating levels and reduce profit margins, environmental compliance and remediation could result in increased cost of capital as well as other relevant risks not included herein. The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
For more information, please contact: CCG Elite Crocker Coulson, President Tel: +1-646-213-1915 Email: [email protected] Web: http://www.ccgelite.com/ China Precision Steel Leada Li, CFO Email: [email protected]
China Precision Steel