The board of directors of China ITS (Holdings) Co., Ltd. informed the shareholders of the Company and potential investors that, based on the information currently available to the Group, it is anticipated that the unaudited consolidated profit of the Group for the six months ended June 30, 2012 may have an increase as compared to the six months ended December 31, 2011, primarily due to diversification into the urban traffic sector as part of the Group's strategy after the railway crisis happened in the second half of 2011; increase in new contract values and backlog in first half of 2012 as compared to second half of 2011; recovery of business performance as a result of restoration of projects implementation and bounce in gross margins contributed from expressway and railway sectors after the railway crisis. However, the unaudited consolidated profit of the Group for the six months ended June 30, 2012 may have a substantial decrease as compared to the corresponding period in 2011, primarily due to higher gross margin contributions in the first half of 2011 before the railway crisis; and lower operating expenses structure and headcount in the first half of 2011 prior to the implementation of business diversification strategy and acquisitions taking place in the second half of 2011.