China Information Security Technology, Inc. CEO Closes on Equity Transfer Agreement to Purchase Remaining Interest in iASPEC

    SHENZHEN, China, July 14 /Xinhua-EMWNews-FirstCall/ -- China

Information Security Technology, Inc., (Nasdaq: CPBY) ("China Information

Security," "CIST" or the "Company"), a leading provider of Information

Security and 3S (Geographic Information System - GIS, Global Positioning

System - GPS and Remote Sensing - RS) services in China, today announced

that Mr. Jiang Huai Lin, the Chairman and Chief Executive Officer of the

Company consummated the purchase the 24% minority interest in iASPEC

Software Co. Ltd. ("iASPEC"), CIST's variable interest entity, from Mr. Jin

Zhu Cai, for a total consideration of RMB60 million (approximately $8.72

million).



    Mr. Lin paid the purchase price by delivering to Mr. Cai, 1,527,855

shares of restricted common stock of CIST owned by him, valued at $5.708

per share (based on a 5-day average of CIST's share price during the week

of June 23, 2008). As a result of the transaction, Mr. Lin now holds 100%

of the equity interests of iASPEC. Details of the transaction can be found

in an 8-K filed by the Company on July 3, 2008.



    Management believes that the transaction solidifies the economic

relationship between CIST and iASPEC and better aligns Mr. Cai's interest

with the interests of CIST shareholders. CIST will continue to receive 100%

of the economic benefits of iASPEC.



    "We are pleased that we have consummated this transaction with Mr.

Cai," said Mr. Lin. "Mr. Cai has been extremely instrumental in iASPEC's

success and we value his continued presence as a CIST shareholder." "I have

developed a strong and respectful relationship with the management of CIST

over the years," said Mr. Jin Zhu Cai, "and I look forward to sharing in

iASPEC's continued success through CIST."

    About China Information Security Technology, Inc.



    Through its wholly-owned Chinese subsidiary, China Information Security

is focused on the development and implementation of large scale, high-tech

information security and 3S ("Geographic Information System - GIS, Global

Positioning System - GPS and Remote Sensing - RS") related projects. The

Company provides a broad portfolio of fully integrated solutions and

services, including Information Security (First Responder Coordination

Platform, Intelligent Border Control System and Residence Card Information

Management System), 3S (GIS, GPS and RS), and Product Sales and Services.

Through its exclusive contractual arrangement with iASPEC Software Company

Limited (iASPEC), China Information Security has the licenses to numerous

registered and copyrighted software applications in China. In addition,

iASPEC is considered the Company's variable interest entity, and its

financial data and information is consolidated into the Company's accounts.

To learn more about the Company, please visit the corporate website at

http://www.chinacpby.com.



    Safe Harbor Statement



    This press release may contain certain "forward-looking statements"

relating to the business of China Information Security Technology, Inc.,

and its subsidiary companies. All statements, other than statements of

historical fact included herein are "forward-looking statements" including

statements regarding the general ability of the Company to achieve its

commercial objectives; the business strategy, plans and objectives of the

Company and its subsidiaries; and any other statements of non-historical

information. These forward-looking statements are 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.






    For more information, please contact:



    Company Contact:

     Mr. Michael Lin

     Vice President, Investor Relations

     China Information Security Technology, Inc.

     Tel: +1-949-743-0868

     Email: [email protected]



    Investor Relations Contact:

     Mr. Crocker Coulson

     President

     CCG Investor Relations

     Tel:     +1-646-213-1915 (NY office)

     Email:   [email protected]

     Website: http://www.ccgir.com