China Intelligence Information Systems, Inc. Subsidiary Signs Virtualization Agreement with China Telecom Shandong Branch

JINAN, China, Jan. 21, 2011 /PRNewswire-Asia-FirstCall/ -- Jinan Yinquan Technology Co., Ltd. (Yinquan), one of the wholly-owned subsidiaries of China Intelligence Information Systems, Inc. (OTC Bulletin Board: IICN), today announced that it has signed virtualization agreements with China Telecom Shandong Branch ("the customer"). This is the continuous success for Yinquan in telecom industry after the cases of China Unicom Zibo and Linyi Branches in last March.

China Telecom is an extra-large State-owned telecom operator in China, Global Partner of World Expo 2010 Shanghai, and was selected into the Top 500 Global Corporations for many consecutive years. China Telecom mainly provides the integrated information services including the fixed-line telephone, mobile service, Internet connection and applications services.

Yinquan will provide the customer with world-leading comprehensive datacenter solution technologies. This will help the customer reduce investment and operating expenses, lowering the total cost of business ownership. It will also help the customer enhance its datacenter security and reduce the required number of servers, resulting in higher energy-savings, lower emissions and more environmentally-friendly effects.

"We designed the integrated virtualization datacenter solution based on the telecom carrier's current and future needs. We are pleased to see our solution is proving to be profitable and useful in the telecom industry," Mr. Kunwu Li, President and CEO of China Intelligence Information Systems, said, "there are great opportunities for us to market telecom industry, and we believe this industry will bring us tremendous profits in the future."

About China Intelligence Information Systems, Inc.

China Intelligence Information Systems, Inc. (CIISI) offers virtualization technology application and cloud computing products in the People's Republic of China through its wholly owned subsidiary Jinan Yinquan Technology Co., Ltd and Beijing PowerUnique Technologies, Co., Ltd. Through the two subsidiaries, CIIS is well positioned to take full advantage of the tremendous economic growth currently being experienced in China. The Company is currently marketing its integrated virtualization solutions and services in China and at this time is in the testing stages of other Information Technology products. More information can be found www.ciisi.com .

About Virtualization Technology

Virtualization is a proven software technology that is rapidly transforming the IT landscape and fundamentally changing the way people compute.

Today's powerful x86 computer hardware was originally designed to run only a single operating system and a single application, but virtualization breaks that boundary, making it possible to run multiple operating systems and multiple applications on the same computer at the same time, increasing the utilization and flexibility of hardware.

Virtualization is a technology that can benefit anyone who uses a computer, from IT professionals and Mac enthusiasts to commercial businesses and government organizations. Millions of people around the world use virtualization to save time, money and energy while achieving more with the computer hardware they already own.

About Cloud Computing

Cloud computing is a general term for anything that involves delivering hosted services over the Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). The name cloud computing was inspired by the cloud symbol that's often used to represent the Internet in flowcharts and diagrams.

A cloud service has three distinct characteristics that differentiate it from traditional hosting. It is sold on demand, typically by the minute or the hour; it is elastic -- a user can have as much or as little of a service as they want at any given time; and the service is fully managed by the provider (the consumer needs nothing but a personal computer and Internet access). Significant innovations in virtualization and distributed computing, as well as improved access to high-speed Internet and a weak economy, have accelerated interest in cloud computing.

Safe Harbor Statement

Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

SOURCE China Intelligence Information Systems, Inc.

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