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China Fire Awarded $10 Million Contract with China Nuclear Power

July 6, 2010

BEIJING, July 6 /PRNewswire-Asia/ — China Fire & Security Group, Inc.
(Nasdaq: CFSG) (“China Fire” or “the Company”), a leading total solution
provider of industrial fire protection systems in China, today announced that
the Company has been awarded a contract for Fire Detection Systems with China
Nuclear Power Engineering Co., Ltd. (“CNPEC”), valued at approximately $10
million
, the largest amount contracted from CNPEC to date.

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. CGNPG is in the process of constructing five
new power-generating projects, which will have a total installed generating
capacity of approximately 21,000 MWe. Among these projects is the Taishan
Nuclear Power Plant (the “Taishan Plant”).

The Taishan Plant, located in Taishan City, Guangdong Province, began its
official construction on December 21, 2009. It is the first nuclear power
station in China to be adopting the latest Evolutionary Power Reactor (“EPR”)
Technology. The overall plan is to build four sets of nuclear power units,
with a single unit within this project targeting capacity of 1,750 MWe, the
largest single-unit output in the world.

EPR technology is a third-generation nuclear power technology designed and
developed in Europe with a main design objective of stronger safety and
enhanced economic competitiveness compared to previous nuclear technologies.
According to the revised Chinese Medium- and Long-term Development Plan for
the Nuclear Power Industry (2005-2020), China aims to have an installed
nuclear power capacity of 70-80 gigawatts by 2020, where most nuclear power
units will adopt third generation technology.

“We are very pleased with our record contract win in the nuclear sector,
which not only demonstrates our success in the fast-growing nuclear vertical
but also further validates our continued efforts to diversify our revenue
mix,” commented Mr. Brian Lin, chief executive officer of China Fire. “As
nuclear power plants require use of the most sophisticated fire protection
products, this high-profile contract win highlights our leading position in
China’s fire protection industry, as well as our excellent value proposition
and strong track record.”

China Fire is contracted to supply its Fire Detection Systems to Nuclear
Island (“NI”), Conventional Island (“CI”) and Balance of Plant (“BOP”), three
key sections of the Taishan Plant. China Fire will be fully responsible for
all aspects of supplying the Fire Detection Systems, from design and
manufacturing to installation and maintenance. Currently, the Company is also
in the process of bidding on the corresponding fire-extinguishing contract for
the Taishan Plant.

For the NI portion of the contract, China Fire, together with the
Company’s business partner, will serve as a fire-detection system designer and
equipment provider. This part of the contract is valued at approximately $8
million
and expected to be completed within the next three years.

Under the CI and BOP portions of the contract, China Fire will serve as a
fire-detection equipment provider for various fire-detection products with a
total value of approximately $2 million. China Fire will provide
fire-detection products that include the Company’s proprietary recoverable
rate-of-rise temperature linear heat detectors, infrared flame detectors, and
special infrared flame detectors for explosion-hazard areas. The project is
expected to be completed within the next three years.

“CNPEC has been our customer since 2008, and we believe CFSG was awarded
this contract win based on CFSG’s proven capabilities of delivering the
industry’s best total fire protection solution and our deepening mutual
relationship of trust and quality with CNPEC. The third generation nuclear
power technology such as EPR technology is set to become the mainstream
technology used in China over the coming years, so we are particularly pleased
to have established a solid foothold in the market. With our strong brand and
technical leadership, we feel we are well-positioned to capture other new
business opportunities that will arise from China government’s implementation
of the $66 billion nuclear power development plan,” concluded Mr. Brian Lin.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG), through its wholly owned
subsidiary, Sureland Industrial Fire Safety Limited (“Sureland”), 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, manufacturing, 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, power, petrochemical and
transportation industries throughout China. China Fire has a seasoned
management team with strong focus on standards and technologies. Currently,

China Fire has a comprehensive portfolio of patents covering fire detection,
system control and fire extinguishing technologies. Founded in 1995, China
Fire
is headquartered in Beijing with about 430 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 Groups’ future performance, operations and products.
This and other “Risk Factors” are contained in China Fire & Security Groups’
public filings with the SEC.

    For more information, please contact:

    China Fire & Security Group, Inc.
     Amy Gao, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu
     Tel:   +86-10-6599-7960
     Email: michael.tieu@icrinc.com

     In the U.S.:
     Bill Zima
     Tel:   +1-203-682-8200
     Email: bill.zima@icrinc.com

SOURCE China Fire & Security Group, Inc.


Source: newswire



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