China Information Security Technology, Inc. Announces Second Quarter 2010 Results

On January 12, 2010, the Company granted eligible employees a total of 213,363 shares of the Company's common stock as compensation under the China Information Security Technology, Inc. 2007 Equity Incentive Plan ("The Plan"). The fair value of these shares of approximately $1.3 million, based on the quoted market price, was accrued as of December 31, 2009 as the compensation was for services provided in 2009.

On February 2, 2009, the Company granted eligible employees a total of 60,000 shares of the Company's common stock as compensation under the Plan. The fair value of these shares of $183,600 based on quoted market price was recognized as stock-based compensation for the six months ended June 30, 2009.

Selected information by segment is presented in the following tables for the three and six months ended June 2010 and 2009.

                               Three months ended        Six months ended
                                    June 30                  June 30
                                2010        2009         2010        2009
                             (Unaudited) (Unaudited)  (Unaudited)  (Unaudited)


    Revenues(1)
         GIS Segment         $15,677,977  $7,974,312  $26,315,057  $13,833,978
         DIST Segment         13,957,662  15,221,482   26,055,086   22,741,939
         DHIS Segment          3,881,249   2,592,125    6,451,852    4,192,186
                             $33,516,888 $25,787,919  $58,821,995  $40,768,103

    (1) Revenues by operating segments exclude intercompany transactions.

    Percentage to Revenue
         GIS Segment               46.8%       30.9%        44.7%        33.9%
         DIST Segment              41.6%       59.0%        44.3%        55.8%
         DHIS Segment              11.6%       10.1%        11.0%        10.3%

SOURCE China Information Security Technology, Inc.

Contact:
China Information Security Technology, Inc.
China Information Security Technology, Inc. - Iris Yan
Phone: +86-755-8370-4767
Email Contact Christensen - Kathy Li
Phone: +1-480-614-3036
Email Contact Roger Hu
Phone: +86-158-1049-5326
Email Contact
Web: http://www.chinacpby.com



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