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ZST Digital Networks, Inc. Signs Agreement to Develop City-Wide GPS Tracking and Services Platform

ZHENGZHOU, China Feb. 24, 2011 China Henan Province

Under the terms of the agreement, ZST Digital will plan, design and implement a city-wide GPS tracking platform primarily for use by commercial vehicle fleets operating in Shangqiu City, including trucks, freight vehicles, taxis, tour buses, minibuses and vehicles for the transport of hazardous materials.  The platform will utilize ZST Digital’s commercial GPS tracking technology and will link registered vehicles to the national and provincial transportation departments.  In addition, ZST Digital will provide ongoing maintenance and support of the platform.

Upon completion of the project, commercial fleets operating within Shangqiu City will be required to register their vehicles on the GPS platform, but will have the option to choose from various GPS equipment and service providers to provide the vehicle-installed GPS units.   However, as part of the agreement with Shangqiu City, ZST Digital will be designated as the "preferred vendor" for GPS products and services by the Shangqiu City Road Transportation Department.  

RMB2.0 million RMB40-50 million

Zhong Bo Henan Province RMB40.0 million RMB50.0 million

Henan Province

About ZST Digital Networks, Inc.

China Henan Province China http://www.shenyangkeji.com

Forward-Looking Statements

the People’s Republic of China

Contacts:

ZST Digital Networks, Inc.

John Chen, CFO

Email: [email protected]

Investor Relations (HK):

Mahmoud Siddig

Taylor Rafferty

Tel:  +852-3196-3712

Email: [email protected]

Investor Relations (US):

Bryan Degnan

Taylor Rafferty

Tel: +1 (212) 889-4350

Email: [email protected]

Investor Relations (US):

BPC Financial Marketing

John Baldissera

Tel: +1-800-368-1217

SOURCE ZST Digital Networks, Inc.

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