China Intelligence Information Systems, Inc. Subsidiary Signs Additional Contract with Xinwen Mining Group

China Intelligence Information Systems, Inc. (OTC Bulletin Board: IICN), a leading virtualization solution provider in China, today announced that its wholly-owned subsidiary Jinan Yinquan Technology Co., Ltd. (Yinquan) has signed an additional contract with Xinwen Mining Group Co., Ltd (the Customer). This follow-on project expands the scope of a project to implement integrated virtualization solution for the Customer’s datacenter announced on April 16, 2010.

The Customer will still use Yinquan’s sophisticated integrated virtualization solution to improve their servers’ utilization rates and enhance datacenter security this time. Yinquan offers the Customer a complete backup solution and virtualization desktop solution (VDI) based its existing virtualized datacenter. Yinquan’s virtualization solutions will also reduce purchasing and administrative expenses. Yinquan was also awarded with a post-implementation services support contract.

“I’m very glad to see the Customer accepted our customized solution well,” Mr. Kunwu Li, President and CEO of China Intelligence Information Systems said, “From April last year to now, we provided virtualization solutions to Xinwen Mining Group Co., Ltd., Zibo Mining Group Co., Ltd. and Linyi Mining Group. The further cooperation with Xinwen Mining Group clearly demonstrates our solid partnership with it. All our mining customers are large state-owned enterprises. These successful cases indicate Yinquan’s ability to serve large-scale enterprise users. We believe we will obtain more and more contracts from the mining industry by helping customers find the right solutions and satisfying their specific demands.”

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

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.