CNIT signs $1.1 million cloud-based ad terminal contract for Beiijing
 
Jul 25, 2017
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SHENZHEN, China, July 24, 2017 - China Information Technology, Inc. (Nasdaq:CNIT), a provider of cloud-app technologies for internet-based ad distribution and ad screen sharing systems in China, today said it has entered into a contract for the sale of 2,000 CNIT cloud-based ad terminals to be installed by year-end throughout Beijing City.

Signed with advertising agency Beijing Haojing Culture & Media Limited, the contract is expected to generate sales and service revenue to CNIT of about $1.1 million. Beijing Haojing is the majority-owned subsidiary of Haojing (Xiamen) Culture Media Co., Ltd., a leading digital elevator advertising service company in China with nationwide market coverage.

The 2,000 terminals will include a built-in module for accessing Yunti Guard, CNIT's IoT safety solution comprising a series of state-of-the-art features not previously available in a single elevator maintenance system.

Today's news is the fifth announcement in the last two months on CNIT's sales of its cloud-based ad terminals. The five contracts have total sales of 20,000 terminals projected to produce revenue of $6.6 million this year. Each of the contracts is also expected to generate additional revenue from customers' use of Yunfa Net (www.cnitiot.com), CNIT's cloud-based system allowing an advertiser to create reduced-cost ads on a PC or mobile app, transmit these ads to the elevator ad terminals of their choice, and receive feedback from the terminals on how viewers are responding to the ads.

"This is a major milestone of our company," said chairman and CEO Mr. Jianghuai Lin. "As the nation's capital and one of the largest cities in China, Beijing will be a great showcase for our products and technology, and likely lead to additional business for CNIT."

The CEO said he remained confident that by year-end CNIT will sell at least 60,000 cloud-based ad terminals with market coverage of approximately 100 million people in 20 major Chinese cities. This expanded coverage will be supported by the buildout of CNIT's national IoT network of cloud-based ad terminals installed in office buildings, residential communities, shopping malls and various outdoor locations, said Mr. Lin, the combination of which is expected to generate growing levels of recurring platform, resource exchange and big data service fees.

These service fees, he said, are likely to have net profit margins exceeding 50 percent.

About China Information Technology, Inc.
China Information Technology, Inc. (CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, elevator safety management, education, etc. Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community. To learn more, please visithttp://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 subsidiaries and other consolidated entities. 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 terminologies 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 and its subsidiaries and other consolidated entities or persons acting on their 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 further information, please contact:
China Information Technology, Inc.
Iris Yan
Tel: +86-755-8370-4767
Email: IR@chinacnit.com
or
Eisenberg Communications
Jimmy Caplan
Tel: +512-329-9505
Email: jimmycaplan@me.com
Media Relations:
Rick Eisenberg
Tel: +212-496-6828
Email: eiscom@msn.com

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