China Security & Surveillance Technology, Inc. Announces Repurchase of $50 Million Tranche A Convertible Notes

SHENZHEN, China, Oct. 22 /PRNewswire-Asia/ -- China Security & Surveillance Technology, Inc. ("CSST" or the "Company") (NYSE: CSR; Nasdaq Dubai: CSR), a leading provider of digital surveillance technology in the PRC, today announced that it has entered into definitive agreement with Citadel Equity Fund Ltd. ("Citadel") to repurchase its $50,000,000 Tranche A Zero Coupon Guaranteed Senior Unsecured Convertible Notes ("Tranche A Notes") for $47.5 million in cash.

Existing Notes Details

Previously, on September 2, 2009 the Company consummated restructuring of its two Guaranteed Senior Unsecured Convertible Notes due 2012 into two new tranches of notes: the Tranche A Notes and the Tranche B Zero Coupon Guaranteed Senior Unsecured Notes (the "Tranche B Notes").

The Tranche A Notes have a principal amount of $50 million, zero coupon interest, and mature on September 2, 2012. The Company will repay the principal amount in six consecutive semi-annual installments, starting March 2, 2010, with 25%, 25% and 50% of the principal amount to be repaid in the first, second and third year, respectively. The conversion price will be $10.00 per share initially, subject to customary conversion price adjustments, anti-dilution protections and a one-time price reset on the date that is eighteen months following the Closing Date (the "Reset Date") based on the volume weighted average price of the Company's shares during the 45 trading days immediately preceding the Reset Date, provided that the conversion price shall be adjusted to no lower than $6.00 per share.

The Tranche B Notes, which are not convertible, have a principal amount of $84 million, zero coupon interest, and mature on September 2, 2012. The Company will repay the principal amount in six consecutive semi-annual installments, starting March 2, 2010, with 46%, 46% and 8% of the principal amount to be repaid in the first, second and third year, respectively.

The Company is entitled to redeem the two tranches of notes at any time with no premium or penalty at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus default interest, if any.

About China Security & Surveillance Technology, Inc.

Based in Shenzhen, China, CSST manufactures, distributes, installs and services surveillance and safety products and systems as well as develops surveillance and safety related software in China. Its customers are mainly comprised of commercial and government entities and non-profit organizations. CSST has built a diversified customer base through its extensive sales and service network that includes over 150 branch offices and distribution points throughout China. To learn more about the Company visit http://www.csst.com .

Safe Harbor Statement

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning the repurchase of the Tranche A Zero Coupon Guaranteed Senior Unsecured Convertible Notes, our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our surveillance and safety products, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. Forward-looking statements can be identified by the use of forward-looking terminology such as 'will,' 'believes,' 'expects' or similar expressions. Such information is based upon expectations of our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to uncertainties and contingencies beyond our control and based upon premises with respect to future business decisions, which are subject to change. The repurchase transaction described herein may not proceed as described, or at all. We do not undertake to update the forward- looking statements contained in this press release. For a description of the risks and uncertainties that may cause actual results to differ from the forward-looking statements contained in this press release, see our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC'), and our subsequent SEC filings. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system at http://www.sec.gov .

    For more information, please contact:

    Company Contact:
     Terence Yap
     Tel:   +86-755-8351-5634
     Email: ir@csst.com

    Investor Contact:
     ICR: Michael Tieu
     Tel:   +86-10-6599-7960
     Email: michael.tieu@icrinc.com

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

    Media Contact:
     Patrick Yu
     Fleishman-Hillard Hong Kong
     Tel:   +852-2530-2577
     Email: patrick.yu@fleishman.com

SOURCE China Security & Surveillance Technology, Inc.