China Info Technology Offers Update on Manufacturing Facility Sale Progress

China Information Technology, Inc. (the "Company" or "CNIT")

, a leading provider of integrated cloud-based platform, exchange, and big data solutions in China, today updates investors on its progress of selling its manufacturing facility in Shenzhen. As previously announced in November 2014, the Company signed a Letter of Intent (LOI) with an unrelated party ("the Buyer") to sell the Company's manufacturing facility including the land use rights, which is located in the Fuyong Industrial Park for RMB 375.0 million (approximately US$60.48 million). By the end of February 2015, the Company has collected RMB 100.0 million (approximately US$16.13 million) of non-refundable down payment. By the end of April 2015, the Company has transferred all risks and responsibilities of managing and maintaining the property to the Buyer. On June 29, 2015, the Company collected an additional RMB 15 million (approximately US$2.42 million) of payment from the Buyer and used such proceeds to pay back some of its maturing bank loans. On June 30, 2015, the Company entered into a land transfer contract with the Buyer under which the Buyer agreed to pay the remaining purchase price of RMB 260 million (approximately US$41.94 million) to CNIT before the end of July 2015. As previously announced, the Company plans to use the proceeds from this transaction for bank loan repayment, working capital, and share repurchase programs. Mr. Jiang Huai Lin, Chairman and CEO of CNIT, commented, "With the cash infusion from this transaction, we believe we will be able to further accelerate our business execution, reduce our interest expenses, and generate more shareholder value."