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China Fire Signs Additional Contracts with China Nuclear Power Engineering Co., Ltd.

Posted on: Monday, 29 December 2008, 06:30 CST

BEIJING, Dec. 29 /PRNewswire-Asia-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG) ("China Fire" or "the Company"), a leading industrial fire protection product and solution provider in China, announced today that the Company has won three additional contracts with China Nuclear Power Engineering Co., Ltd. ("CNPEC"), valued at approximately $5.3 million for three independent fire detection projects. The Company expects to fulfill and recognize revenue from these contracts over the course of a three year period beginning in 2009. The contracts announced today are in addition to the two contracts valued at $7.6 million for fire extinguishing projects China Fire announced on October 8, 2008.

CNPEC, headquartered in Shenzhen, Guangdong Province, is a subsidiary of China Guangdong Nuclear Power Group ("CGNPG"), the largest of the three nuclear power companies in China. CNPEC owns Guangdong Daya Bay Nuclear Power Station and Ling'ao Nuclear Power Station ("LNPS") Phase I that have a total installed generating capacity of up to 4,000 MWe. CGNPG is currently constructing four new projects, including LNPS Phase II, Liaoning Hong Yanhe Station ("LHYS") Phase I, Ningde Nuclear Power Station ("NNPS") Phase I and Yangjiang Nuclear Power Station ("Y NPS") Phase I with a total installed generating capacity of up to 10,000 MWe.

Under the first contract, China Fire will serve as a fire detection products provider for NNPS Phase I project that has a nuclear power generating capacity of 4,000 MWe in Fujian Province. The contract is valued at approximately $2.1 million. China Fire will provide multi-frequency infrared flame detector and various fire detection products in this contract.

Under the second contract, China Fire will also serve as a fire detection products provider for LHYS Phase I project that has a nuclear power generating capacity of 4,000 MWe in Liaoning Province. China Fire will provide various fire detection products with a contract value of approximately $2.1 million.

Under the third contract, China Fire will serve as a fire detection products provider for YNPS Phase I project that has a nuclear power generating capacity of 2,000 MWe in Guangdong Province. China Fire will provide various fire detection products with a contract value of approximately $1.1 million.

Mr. Brian Lin, Chief Executive Officer of China Fire commented, "We are pleased to further strengthen our relationship with CNPEC by securing additional contracts for project work. CFSG already serves as the fire-extinguishing equipment provider for the NNPS Phase I and LHYS Phase I projects and we are thrilled to now provide fire detection equipment work for these existing projects as well as for the YNPS Phase I project. We continue to concentrate on providing a total solutions offering for our nuclear customers. Having the ability to provide both extinguishment and detection products and solutions provides us with a greater opportunity to secure additional contracts in the nuclear industry."

"We remain focused on diversifying our revenue stream and customer base and these new contracts announced today are evidence of our progress. As we anticipate increased project demand in the nuclear industry, we are strengthening our R&D efforts to develop proprietary fire protection products to optimize our margin performance in this new vertical for CFSG. We are pleased with our progress in all key areas of our business and remain encouraged with our opportunities heading into the new year," concluded Mr. Gangjin Li, Executive Chairman of China Fire.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, statements about industry trends and China Fire & Security Group's future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

SOURCE China Fire & Security Group, Inc.

Source: PR Newswire

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