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China Infrastructure Investment Reports Fiscal Year 2009-2010 Financials

BEIJING--(Marketwire - 10/07/10) - China Infrastructure Investment Corporation (NASDAQ:CIIC - News), which is engaged in the investment, construction, operation and management of the Pinglin Expressway toll road, a 106-kilometer (66 miles) dual carriageway four-lane toll road in the central province of Henan, and the rental of petroleum stations and service districts along the toll roads reported that net profit for the fiscal year 2009-2010 increased 12.1% to $2,477, 130, comparing to $2,209,706 of the same period a year ago.The revenues derived from the operation of Pinglin Expressway decreased by approximately $7.7 million, from $50,270,277 for the year ended June 30, 2009 to $42,626,988 for the year ended June 30, 2010. The revenue decline is partially due to an unprecedented heavy snow storm in November 2009 and the traffic detour as the result of Lianhuo Expressway expansion project. Lianhuo Expressway connects Pinglin Expressway from the north. The expansion project reduces the incoming traffic to Pinglin Expressway. The project is expected to complete in June 2011.Despite the decrease of revenue, the Company was able to reduce its operating costs by approximately $2.0 million, from approximately $5.6 million for the year ended June 30, 2009 to approximately $3.6 million for the year ended June 30, 2010. General and administrative expenses also decreased by approximately $1.2 million to $4,197,729, compared to $5,404,212 for the year ended June 30, 2009.Net interest expense decreased by approximately $5.7 million, from $34,140,068 for the year ended June 30, 2009 to $28,397,389 for the year ended June 30, 2010. This decrease is primarily due to the decreased interest rate of our loans and the decrease in our loan principal.The net income increased by approximately $0.3 million, 12.1%, from $2,209,706 for the year ended June 30, 2009 to $2,477,130 for the year ended June 30, 2010.The Company's Chairman and Chief Executive Officer, Mr. Li Xipeng, commented, "Despite the adversary conditions, we are pleased with our overall operations and financial performances. The Company has proven its ability to generate net profit and positive cash flow while fulfilling its debt obligations in the past two years since we were listed on NASDAQ. The expansion project of Lianhuo Expressway with expected completion in June 2011 which we anticipate will increase traffic volume and improve Pinglin Expressway's revenue."About China Infrastructure Investment CorporationChina Infrastructure Investment Corporation, incorporated in Nevada, USA and headquartered in Henan Province, China, focuses on investing in, constructing, operating and managing infrastructure development projects in China. The Company currently operates the Pinglin Expressway, a 106-kilometer (66 miles) dual carriageway four-lane toll road in the central province of Henan. The Expressway is an important passage from the northwest region to the southeast coastal region of China. The Company is actively pursuing additional development opportunities in infrastructure projects, including expressways, electricity, water supply and bio fuel facilities. For more information, please visit www.ciicusa.com.

 
Years Ended June 30 Years Ended June 30
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2010 2009 2010 2009
Revenues 42,626,988 50,270,277 100.0% 100.0%
Operating costs 3,622,060 5,603,843 8.5% 11.1%
Depreciation and
amortization 12,995,000 12,130,615 30.5% 24.1%
Gross profit 26,009,928 32,535,819 61.0% 64.7%
General and
administrative expenses 4,197,729 5,404,212 9.8% 10.8%
Income from operations 21,812,199 27,131,607 51.2% 54.0%
Interest income from
related parties 8,379,605 9,335,849 19.7% 18.6%
Other interest income 189,641 65,129 0.4% 0.1%
Interest expense, net 28,397,389 34,140,068 66.6% 67.9%
Other income, net 1,474,458 676,601 3.5% 1.3%
Income from operations
before income taxes 3,458,514 3,069,118 8.1% 6.1%
Income tax expense 981,384 859,412 2.3% 1.7%
Net income 2,477,130 2,209,706 5.8% 4.4%

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of alternative new routes and modes of transportation, pricing and new technology; changes in consumer preferences, and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of maintenance and construction, and other factors such as those discussed in the Company's reports filed with the Securities and Exchange Commission. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.No securities regulatory authority has either approved or disapproved the contents of this news release.