Highlights for the second quarter of 2010:
    -- Revenue increased 0.4% year-over-year to $22.8 million
    -- Backlog totaled $145 million as of June 30th, 2010, an increase of $4
       million from the end of the first quarter of 2010


    (in US Dollars)              Second Quarter,    Second Quarter, Change (%)
                                       2010               2009
    GAAP Net Income                  6,333,660         8,336,222     -24.0%
    Non-Cash Option and
     Restricted                      1,035,674           245,049     322.6%
    Stock Expenses
    Non-GAAP Net Income              7,369,334         8,581,271     -14.1%
    GAAP Diluted EPS                      0.22              0.29     -24.3%
    Non-GAAP Diluted EPS                  0.26              0.30     -14.4%

Second Quarter 2010 Results

For the second quarter of 2010, the Company's total revenue increased 0.4% year over year to $22.8 million, compared to $22.7 million for the same period in 2009. This slight increase was primarily attributable to the increase in the Company's revenues from maintenance services, offset by the decrease in the Company's revenue from system contracting projects and product sales.

Revenues from system contracting projects decreased by 0.1% to $18.3 million during the second quarter of 2010, compared to $18.3 million for the same period of last year, while revenues from product sales were $3.6 million during the second quarter of 2010, compared to $3.8 million for the same period of 2009. The decrease in revenues from both system contracting projects and product sales were attributable to the slowdown in the execution of projects from the iron and steel industry, which experienced industry weakness with lower steel selling prices and rising costs of iron ore during the period.

Gross margin for the second quarter of 2010 was 54.3%, compared to a gross margin of 63.8% for the second quarter of 2009. The decrease in the Company's gross margin was mainly due to the lower revenue contribution from iron and steel industry during the period. System contracting projects from the iron and steel industry generally contribute higher gross margins than the projects from other industries, due to a higher percentage of the Company's self- manufactured proprietary products being utilized in the iron and steel projects.

The Company's operating income for the second quarter of 2010 was $7.0 million, compared to $9.6 million for the same period last year. The decrease in the operating income was mainly attributable to the decrease in the Company's gross profit and the increase in the Company's operating expenses during the period.

The Company's GAAP net income for the second quarter of 2010 was $6.3 million, compared to $8.3 million for the same period of 2009, representing an annual decrease of 24.0%. The decrease in net income was mainly due to the decrease in gross profit and increase in operating expenses during the period. As a result, the Company's fully diluted EPS was $0.22 in the second quarter of 2010, versus $0.29 in the second quarter of 2009.

If the non-cash option and restricted stock expenses are excluded, then the Company's non-GAAP net income was $7.4 million during the second quarter of 2010, compared to $8.6 million during the second quarter of 2009, representing an annual decrease of 14.1%. The Company's non-GAAP diluted EPS was $0.26 for the second quarter of 2010, compared to $0.30 for the same period of 2009.

Liquidity and Capital Resources

As of June 30, 2010, the Company had cash and cash equivalents of $27.8 million, a sequential increase of $2.6 million from $25.1 million at the end of the first quarter of 2010. During the second quarter, the Company generated $2.8 million cash from operations as compared to a positive operating cash flow of $0.4 million in the same period of last year.

Mr. Brian Lin, chief executive officer of China Fire, commented, "I am pleased with the progress we have achieved during this quarter, particularly in light of the unexpected softness in the iron and steel vertical. As we continue to build up our backlog, we remain optimistic, having seen significant opportunities and demand for our fire protection total solutions."

Financial Outlook for 2010

Based on the Company's current backlog and contract pipeline, for full year 2010, the Company now expects to achieve revenues of $118 million to $125 million, representing an annual top line growth of 45%-54%. The Company estimates that GAAP net income will be in the range of $34 million to $36 million, or EPS of $1.20 to $1.26 based on fully diluted shares outstanding of 28.5 million, representing an annual bottom line growth of 39% - 47%. This is in comparison to the previous targets of revenue of $135 million to $145 million, net income of $47 million to $49 million and EPS of $1.65 to $1.70.

Mr. Lin concluded, "We believe that the current setback within China's iron and steel industry is only a short-term challenge to our business. We find it prudent to revise our 2010 outlook accordingly. We remain fully confident in our ability to grow our business and expand our market share in different verticals. The long-term $2 billion market potential of retrofitting opportunities within the iron and steel industry has not changed, and in our view, we are well-positioned to capture tremendous business opportunities from the industry recovery and from China's industrialization process overall. As such, we believe that China Fire's current stock price level does not reflect the intrinsic value of our Company, and so we intend to actively implement our existing share buy-back plan of $10 million. We are confident that by leveraging our proprietary products, leading brand name and strong track record, China Fire will continue to gain significant market shares from the iron and steel, power generation, chemical, transportation and international markets."

Conference Call

The Company will hold a conference call to discuss the financial results at 8:00 a.m. ET today, August 9, 2010. The Company invites the participants to join the call by dialing +1-719-325-4841. To listen to the live webcast of the event, please go to http://www.chinafiresecu... and click on the Investor Relations section where conference calls are posted. Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from August 9, 2010 to August 16, 2010. Listeners may access the recording by dialing +1-719-457-0820, passcode: 4879502.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ:CFSG - News), through its wholly owned subsidiary, Sureland Industrial Fire Safety Limited, is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacturing, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. The Company owns a comprehensive portfolio of patents covering fire detection, system control and fire extinguishing technologies, and via its nationwide direct sales force, has built a solid client base including major companies in iron and steel, power, petrochemical and transportation industries throughout China. Founded in 1995, China Fire is headquartered in Beijing with about 430 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

     China Fire & Security Group, Inc.
     Amy Gao, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu
     Tel:   +86-10-6599-7960
     Email: michael.tieu@icrinc.com

     In the U.S.:
     Bill Zima
     Tel:  +1-203-682-8200
     Email: bill.zima@icrinc.com



               CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                    AS OF JUNE 30, 2010 AND DECEMBER 31, 2009
                                     ASSETS

                                              June 30,           December 31,
                                                2010                2009
    CURRENT ASSETS:                          (Unaudited)

     Cash and cash equivalents      $          27,773,889 $       34,976,880
     Restricted cash                            4,324,670          1,837,134
     Notes receivable                           2,836,706          4,274,268
     Accounts receivable, net of
      allowance for doubtful accounts
      of $7,274,109 and $6,539,787 as
      of June 30, 2010 and December
      31, 2009, respectively                   34,350,836         30,989,569
     Receivables from related party               156,069            156,599
     Other receivables                            616,311            368,679
     Other receivables from related
      parties                                   1,217,736            395,193
     Refundable bidding and system
      contracting project deposits              1,596,790          1,774,330
     Inventories                                5,528,866          5,360,520
     Costs and estimated earnings
      in excess of billings                    55,302,042         36,562,573
     Employee advances                          1,407,024            953,625
     Prepayments and deferred
      expenses                                  3,667,230          3,397,358
       Total current assets                   138,778,169        121,046,728
    PLANT AND EQUIPMENT, net                    8,887,674          8,617,521
    OTHER ASSETS:
     Restricted cash - non current              3,566,050          3,602,906
     Accounts receivable -
      retentions                                2,941,189          3,463,998
     Deferred expenses - non
      current                                     116,519            116,045
     Investment in joint ventures                 482,502            477,837
     Intangible assets, net                     1,005,912          1,041,156

       Total other assets                       8,112,172          8,701,942

         Total assets               $         155,778,015 $      138,366,191

                             LIABILITIES AND EQUITY
    CURRENT LIABILITIES:

     Accounts payable               $          8,769,594  $        6,903,961
     Accounts payable to related
     party                                            --             272,994
     Customer deposits                         2,476,834           2,182,790
     Billings in excess of costs
     and estimated
     earnings                                  1,488,334           1,429,999
     Other payables                              472,175             333,121
     Accrued liabilities                      15,861,264          13,841,300
     Taxes payable                             8,181,622           9,002,470

       Total current liabilities              37,249,823          33,966,635


    COMMITMENTS AND CONTINGENCIES
    EQUITY:
     Common stock, $0.001 par value,
      65,000,000 shares authorized,
      27,595,541 shares issued and
      outstanding as of June 30,
      2010 and December 31, 2009,
      respectively                                27,595              27,595
     Additional paid-in-capital               22,672,485          20,601,138
     Statutory reserves                        7,147,795           7,147,795
     Retained earnings                        80,846,934          69,266,049
     Accumulated other
      comprehensive income                     7,791,584           7,324,237
       Total shareholders' equity            118,486,393         104,366,814
       Noncontrolling interest                    41,799              32,742
       Total equity                          118,528,192         104,399,556
         Total liabilities and
          equity                    $        155,778,015  $      138,366,191



                CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
         CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
                FOR THE THREE MONTHS ENDED JUNE 30, 2010 AND 2009
                                    UNAUDITED

                                              Three Months Ended June 30,
                                                2010                2009
    REVENUES
      System contracting projects        $    18,267,248  $       18,290,930
      Products                                 3,556,422           3,791,491
      Maintenance services                     1,009,761             649,447
          Total revenues                      22,833,431          22,731,868
    COST OF REVENUES
      System contracting projects              7,876,558           6,970,283
      Products                                 1,856,133             865,395
      Maintenance services                       705,688             395,619
          Total cost of revenues              10,438,379           8,231,297

    GROSS PROFIT                              12,395,052          14,500,571
    OPERATING EXPENSES
      Selling and marketing                    2,209,162           2,237,873
      General and administrative               2,618,664           1,983,443
      Depreciation and amortization              202,055             183,456
      Research and development                   399,701             519,987

          Total operating expenses             5,429,582           4,924,759

    INCOME FROM OPERATIONS                     6,965,470           9,575,812
    OTHER INCOME (EXPENSES)
       Other income                              302,269             110,301
       Interest income                            99,548               7,206

          Total other income (expenses)          401,817             117,507
    INCOME BEFORE PROVISION FOR
    INCOME TAXES AND
    NONCONTROLLING INTEREST                    7,367,287           9,693,319
    PROVISION FOR INCOME TAXES                 1,051,259           1,357,097
    NET INCOME BEFORE
    NONCONTROLLING INTEREST                    6,316,028           8,336,222
    Less: Net loss attributable to
     noncontrolling interest                     (17,632)                 --
    NET INCOME ATTRIBUTABLE TO
    CONTROLLING INTEREST                       6,333,660           8,336,222
    OTHER COMPREHENSIVE INCOME
       Foreign currency translation
        adjustment                               487,820              69,294
    COMPREHENSIVE INCOME                 $     6,821,480  $        8,405,516
    BASIC EARNINGS PER SHARE

       Weighted average number of shares      27,595,541          27,588,598
       Earnings per share                $          0.23  $             0.30
    DILUTED EARNINGS PER SHARE

       Weighted average number of shares      28,405,959          28,298,850
       Earnings per share                $          0.22  $             0.29

Ansteel is headquartered in Anshan City, Liaoning Province, China. With an annual production capacity of 32 million tons of iron and steel, Anshan is one of the top three large-scale, state-owned iron and steel companies in China. Ansteel's Bayuquan Steel Project ("Bayuquan Base"), located in Yingkou City, Liaoning Province, is a modern production base for Ansteel's higher-quality products. Since its operations commenced in 2008, Bayuquan Base has been one of Ansteel's top three production bases with an annual production capacity of 15 million tons.

Under the first contract, valued at approximately $3.4 million, China Fire will provide fire protection services for a retrofitted medium-heavy plate mill at Ansteel's Bayuquan Base. China Fire will provide a turn-key fire protection system featuring the Company's Fire Security Information Management System, which facilitates real-time network monitoring, an Automatic Fire Alarm and Control System, a Fire Emergency Communication System, and a Water Mist Fire Extinguishing System. This turn-key solution will ensure that fire-hazard locations in the mill's main production areas, such as underground cable tunnels, hydraulic stations, oil depots, underground electrical rooms and step-down transformers, are protected from potential fire risks and are fully compliant with the new fire codes for China's iron and steel industry. This project is expected to be completed within the next six months.

Under the second contract, valued at approximately $0.7 million, China Fire will provide total solution retrofitting service for ANSC-TKS Galvanizing Inc. ("TAGAL"), a joint venture company formed by ThyssenKrupp Stahl and Ansteel. Previously, in 2005, China Fire was contracted to implement a supporting fire protection system for TAGAL's Phases I and II projects. This time, China Fire has been commissioned to employ its proprietary products, such as linear heat detectors and a fire-alarm monitoring and control system, to make TAGAL's plant fully compliant with the new fire codes for iron and steel industry. This project is expected to be completed within the next three months.

"We are very excited about the opportunity to provide our turn-key fire protection system to Ansteel, a long-time customer of ours," commented Mr. Brian Lin, chief executive officer of China Fire. "We feel this win once again proves our customers' trust and satisfaction with our solid industry experience, leading brand and comprehensive fire protection solutions. We are also encouraged by the strong sponsorship by the Chinese government for the technological renovation and upgrades in the production capacity among the large iron and steel groups, as indicated by the contract wins with Ansteel. We are very confident that our expanding portfolio of total solution projects will further help China Fire to secure more retrofitting contracts in the iron and steel industry in the near future," concluded Mr. Lin.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ:CFSG - News), through its wholly owned subsidiary, Sureland Industrial Fire Safety Limited ("Sureland"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacturing, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, power, petrochemical and transportation industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has a comprehensive portfolio of patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 430 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

     China Fire & Security Group, Inc.
     Amy Gao, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

     ICR, Inc.
     In China:
     Michael Tieu
     Tel:   +86-10-6599-7960
     Email: michael.tieu@icrinc.com

     In the U.S.:
     Bill Zima
     Tel:  +1-203-682-8200
     Email: bill.zima@icrinc.com

CNPEC, headquartered in Shenzhen, Guangdong Province, is a subsidiary of China Guangdong Nuclear Power Group ("CGNPG"), the largest of the three nuclear power companies in China. CGNPG is in the process of constructing five new power-generating projects, which will have a total installed generating capacity of approximately 21,000 MWe. Among these projects is the Taishan Nuclear Power Plant (the "Taishan Plant").

The Taishan Plant, located in Taishan City, Guangdong Province, began its official construction on December 21, 2009. It is the first nuclear power station in China to be adopting the latest Evolutionary Power Reactor ("EPR") Technology. The overall plan is to build four sets of nuclear power units, with a single unit within this project targeting capacity of 1,750 MWe, the largest single-unit output in the world.

EPR technology is a third-generation nuclear power technology designed and developed in Europe with a main design objective of stronger safety and enhanced economic competitiveness compared to previous nuclear technologies. According to the revised Chinese Medium- and Long-term Development Plan for the Nuclear Power Industry (2005-2020), China aims to have an installed nuclear power capacity of 70-80 gigawatts by 2020, where most nuclear power units will adopt third generation technology.

"We are very pleased with our record contract win in the nuclear sector, which not only demonstrates our success in the fast-growing nuclear vertical but also further validates our continued efforts to diversify our revenue mix," commented Mr. Brian Lin, chief executive officer of China Fire. "As nuclear power plants require use of the most sophisticated fire protection products, this high-profile contract win highlights our leading position in China's fire protection industry, as well as our excellent value proposition and strong track record."

China Fire is contracted to supply its Fire Detection Systems to Nuclear Island ("NI"), Conventional Island ("CI") and Balance of Plant ("BOP"), three key sections of the Taishan Plant. China Fire will be fully responsible for all aspects of supplying the Fire Detection Systems, from design and manufacturing to installation and maintenance. Currently, the Company is also in the process of bidding on the corresponding fire-extinguishing contract for the Taishan Plant.

For the NI portion of the contract, China Fire, together with the Company's business partner, will serve as a fire-detection system designer and equipment provider. This part of the contract is valued at approximately $8 million and expected to be completed within the next three years.

Under the CI and BOP portions of the contract, China Fire will serve as a fire-detection equipment provider for various fire-detection products with a total value of approximately $2 million. China Fire will provide fire-detection products that include the Company's proprietary recoverable rate-of-rise temperature linear heat detectors, infrared flame detectors, and special infrared flame detectors for explosion-hazard areas. The project is expected to be completed within the next three years.

"CNPEC has been our customer since 2008, and we believe CFSG was awarded this contract win based on CFSG's proven capabilities of delivering the industry's best total fire protection solution and our deepening mutual relationship of trust and quality with CNPEC. The third generation nuclear power technology such as EPR technology is set to become the mainstream technology used in China over the coming years, so we are particularly pleased to have established a solid foothold in the market. With our strong brand and technical leadership, we feel we are well-positioned to capture other new business opportunities that will arise from China government's implementation of the $66 billion nuclear power development plan," concluded Mr. Brian Lin.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ:CFSG - News), through its wholly owned subsidiary, Sureland Industrial Fire Safety Limited ("Sureland"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacturing, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, power, petrochemical and transportation industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has a comprehensive portfolio of patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 430 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

    China Fire & Security Group, Inc.
     Amy Gao, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu
     Tel:   +86-10-6599-7960
     Email: michael.tieu@icrinc.com

     In the U.S.:
     Bill Zima
     Tel:   +1-203-682-8200
     Email: bill.zima@icrinc.com

The CLSA AsiaUSA Forum 2010 is being held from Monday through Wednesday, March 1-3, 2010, in San Francisco, CA.

The Rodman & Renshaw Annual China Investment Conference is being held from Sunday through Tuesday, March 7-9, 2010, at the Regent Hotel in Beijing.

Management will be presenting and meeting with institutional investors at each conference. For more information regarding the conferences, please contact your respective sales representatives.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ:CFSG - News), through its wholly owned subsidiary, Sureland Industrial Fire Safety Limited ("Sureland"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, power, petrochemical and transportation industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has a comprehensive portfolio of patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 600 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

    For more information, please contact:

     China Fire & Security Group, Inc.
     Amy Gao, Investor Relations
     Phone: +86-10-8441-7400
     Email: ir@chinafiresecurity.com

     ICR, Inc.
     In China:
     Michael Tieu
     Phone: +86-10-6599-7960
     Email: michael.tieu@icrinc.com

     In the U.S.:
     Bill Zima
     Phone:  +1-203-682-8200
     Email: bill.zima@icrinc.com

BEIJING, Nov. 9 /PRNewswire-Asia/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News; "China Fire" or "the Company"), a leading total solution provider of industrial fire protection systems in China, today announced its financial results for the third quarter ended September 30, 2009.

Third quarter 2009 Results

For the third quarter of 2009, revenue increased 48.2% to a record high of $24.8 million compared to $16.7 million for the same period in 2008, benefiting from higher sales of system contracting projects and product sales during the period. The Company recognized revenues from 205 total solution, product sales and maintenance contracts for the three months ended September 30, 2009 as compared to 163 contracts for the three months ended September 30, 2008.

Gross profit for the third quarter of 2009 increased by 41.9%, or $4.1 million, to $14.0 million, from $9.9 million in the same period of prior year. Gross margin for the third quarter of 2009 was 56.4%, compared to 58.9% for the same period of 2008, primarily due to the decreased gross margin of the product sales.

Operating income grew 34.4% to $8.5 million, from $6.1 million for the same period last year, driven by the strong revenue growth. Operating margin in the third quarter of 2009 was 34.4% versus 36.6% a year ago due to the lower gross margin during this period.

Operating expenses were $5.5 million for the third quarter of 2009, compared to $3.7 million for the same period of 2008. As a percentage of the total revenue, operating expense was 22.1%, decreased from 22.3% a year ago.

Tax expense was $1.3 million for an effective tax rate of 15.0%, as compared to $6,736 tax credit a year ago.

Net income was $7.6 million, an increase of $1.1 million, or 17.0%, as compared to $6.5 million for the same period of 2008. As a result, fully diluted EPS increased 16.5% to $0.27 in the third quarter of 2009, versus $0.23 in the third quarter of the prior year.

Mr. Brian Lin, Chief Executive Office of China Fire commented, "I am satisfied with our third quarter performance, as we achieved record revenue and solid profits. During the quarter, we have secured contracts from iron and steel companies, power plants, and petrochemical plants. We have also succeeded in significantly growing our international markets with notable wins in the fast-emerging power generation market in India. While our backlog at the end of the third quarter was $75 million, we continue to be excited by our growth opportunities and by our ability to command firm pricing for our total solutions. We believe that our technical strengths and leading market position will enable us to seize more growth opportunities from the world's two most dynamic economies -- China and India."

Liquidity and Capital Resources

As of September 30, 2009, the Company had cash of $28.5 million, working capital of $84.1 million, and zero debt. During the third quarter, our accounts receivable increased by $4.1 million to $28.3 million, our DSOs increased slightly to 130 days, versus 128 days in the previous quarter.

Financial Outlook for 2009

For the full year 2009, the Company has reaffirmed its revenue guidance of $88 million to $95 million and its projected net income between $28.3 million and $29.7 million, or $1.00 to $1.05 per diluted share.

Mr. Lin commented, "As a component of China's revitalization scheme for the iron and steel industry, the government, in its efforts to control overcapacity, recently held back on further building new production capacity. However, at the same time, the revitalization scheme also encourages our tier- 1 iron and steel customers to invest in technology innovation and upgrade, and to build new plants for high-end products. We are increasingly excited about the large contract opportunities in the market of retrofitting existing iron and steel production capacities, with the further enforcement of new Fire Protection Law and the mandatory national fire codes for iron & steel plants in China. Additionally, we anticipate continued government support to substantially expand the nation's power generation and transmission capacity and sustained momentum in the transportation and petrochemical verticals. We are also excited about the fast-growing industrialization process in India and other developing economies throughout Asia. As such, we remain focused on executing the strategies that we have consistently outlined throughout 2009.

"We remain bullish about our growth prospects, and we are confident about our strategy and our technical expertise in fire safety. We intend to continue growing our leading brand, distribution, customer base, total solution offering, and competitive advantages in the rapidly growing industrial fire protection industry."

Conference Call

The Company will hold a conference call to discuss the financial results at 8:00 a.m. ET today, November 9, 2009. The Company invites you to join the call by dialing 1-719-325-2322. To listen to the live webcast of the event, please go to http://www.chinafiresecu... and click on the Investor Relations section where conference calls are posted. Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from November 9, 2009 to November 16, 2009. Listeners may access the replay by dialing 1-719-457-0820, passcode: 5435341.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiary, Sureland Industrial Fire Safety Limited ("Sureland"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, power, petrochemical and transportation industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has a comprehensive portfolio of patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 600 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

     China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

     ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com


                  (Financial Statements on the following pages)



               CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                 AS OF SEPTEMBER 30, 2009 AND DECEMBER 31, 2008
                                     ASSETS

                                             September 30,       December 31,
                                            2009(Unaudited)          2008
    CURRENT ASSETS:
     Cash and cash equivalents                $28,483,011        $26,655,333
     Restricted cash                            1,515,385          5,377,933
     Notes receivable                           6,086,333          3,670,259
     Accounts receivable, net of
      allowance for doubtful accounts
      of $6,091,865 and $4,370,362 as of
      September 30, 2009 and December 31,
      2008, respectively                       32,408,623         25,826,343
     Receivables from related party               550,517            466,223
     Other receivables                          1,706,124          1,532,259
     Inventories                                5,084,589          6,538,938
     Costs and estimated earnings in
      excess of billings                       35,774,224         17,821,708
     Employee advances                          1,386,094            743,868
     Prepayments and deferred expenses          3,387,997          2,816,976
        Total current assets                  116,382,897         91,449,840
    PLANT AND EQUIPMENT, net                    8,539,508          8,445,254
    OTHER ASSETS:
     Restricted cash - non current              3,481,274          1,872,828
     Accounts receivable - retentions           3,445,092          1,107,450
     Advances on building and
      equipment purchases                              --            249,859
     Investment in joint ventures                 477,838          1,167,238
     Intangible assets, net of
      accumulated amortization                  1,059,980          1,116,449
        Total other assets                      8,464,184          5,513,824
           Total assets                      $133,386,589       $105,408,918

                             LIABILITIES AND EQUITY
    CURRENT LIABILITIES:
     Accounts payable                          $7,578,793         $6,664,090
     Customer deposits                          2,836,162          6,102,026
     Billings in excess of costs and
      estimated earnings                        1,260,403          4,237,528
     Other payables                               405,376            837,973
     Accrued liabilities                       11,600,618          6,785,409
     Taxes payable                              8,667,218          2,092,745
        Total current liabilities              32,348,570         26,719,771

    COMMITMENTS AND CONTINGENCIES EQUITY:
     Common stock, $0.001 par value,
      65,000,000 shares authorized,
      27,593,275 and 27,586,593 shares
      issued and outstanding as of
      September 30, 2009 and December 31,
      2008, respectively                           27,593             27,586
     Additional paid-in-capital                20,092,548         19,357,409
     Statutory reserves                         7,148,827          7,148,827
     Retained earnings                         66,385,947         44,850,181
     Accumulated other comprehensive
      income                                    7,317,511          7,305,144
        Total shareholders' equity            100,972,426         78,689,147
     Noncontrolling interest                       65,593                 --
        Total equity                          101,038,019         78,689,147
           Total liabilities and
            equity                           $133,386,589       $105,408,918



              CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
         CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
         FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
                                  (Unaudited)

                               Three Months Ended        Nine Months Ended
                                  September 30,            September 30,
                                2009         2008         2009        2008
    REVENUES
        System contracting
         projects           $18,710,099  $15,173,858  $50,004,213 $41,060,246
        Products              5,351,659      978,806   12,267,472   5,393,942
        Maintenance
         services               754,671      590,603    1,988,823   1,639,429
            Total revenues   24,816,429   16,743,267   64,260,508  48,093,617

    COST OF REVENUES
        System contracting
         Projects             7,821,254    6,459,973   19,598,795  18,001,928
        Products              2,559,838      117,258    4,636,886   1,176,638
        Maintenance
         services               436,026      301,605    1,228,186     821,932
            Total cost of
             revenues        10,817,118    6,878,836   25,463,867  20,000,498


    GROSS PROFIT             13,999,311    9,864,431   38,796,641  28,093,119

    OPERATING EXPENSE
        Selling and
         marketing            2,470,092    1,718,929    6,610,283   5,054,642
        General and
         administrative       2,416,007    1,132,492    6,080,089   3,559,940
        Depreciation and
         amortization
         expenses               197,042      123,829      573,892     445,779
        Research and
         development            390,029      762,382    1,224,046   1,656,983
            Total
             operating
             expense          5,473,170    3,737,632   14,488,310  10,717,344


    INCOME FROM OPERATIONS    8,526,141    6,126,799   24,308,331  17,375,775

    OTHER INCOME (EXPENSE)
        Other income            241,521      280,094      463,820     501,737
        Other expense            (5,604)      (3,675)      (6,906)    (89,063)
        Interest income, net     99,205       48,010      228,507     139,754
            Total other
             income             335,122      324,429      685,421     552,428

    INCOME BEFORE PROVISION
     FOR INCOME TAXES AND
     NONCONTROLLING INTEREST  8,861,263    6,451,228   24,993,752  17,928,203


    PROVISION FOR INCOME
     TAXES                    1,329,732       (6,736)   3,480,396      53,359

    NET INCOME BEFORE
     NONCONTROLLING INTEREST  7,531,531    6,457,964   21,513,356  17,874,844

    Less: Net loss
     attributable to
     noncontrolling
     interest                   (22,410)          --      (22,410)         --

    NET INCOME ATTRIBUTABLE
     TO CONTROLLING INTEREST  7,553,941    6,457,964   21,535,766  17,874,844

    OTHER COMPREHENSIVE
     INCOME (LOSS)
        Foreign currency
         translation
         adjustment             121,290      173,873       12,367   3,534,472


    COMPREHENSIVE INCOME     $7,675,231   $6,631,837  $21,548,133 $21,409,316

    BASIC EARNINGS PER SHARE
        Weighted average
         number of shares    27,593,275   27,572,112   27,589,489  27,562,087
        Earnings per share        $0.27        $0.23        $0.78       $0.65

    DILUTED EARNINGS PER SHARE
        Weighted average
         number of shares    28,372,332   28,259,171   28,299,552  28,205,583
        Earnings per
         share                    $0.27        $0.23        $0.76       $0.63

Listeners may access the call by dialing # 1-719-325-2322. To listen to the live webcast of the event, please go to http://www.chinafiresecu... and click on the Investor Relations section where conference calls are posted. Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from November 9, 2009 to November 16, 2009. Listeners may access the replay by dialing #1-719-457-0820, passcode: 5435341.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

    China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com

BEIJING, Oct. 27 /PRNewswire-Asia/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News; "China Fire" or "the Company"), a leading total solution provider of industrial fire protection systems in China, today announced the Company signed a new engineering, procurement, and construction ("EPC") contract worth approximately US$4.4 million with Indian National Thermal Power Cooperation Limited ("NTPC") for fire protection solutions.

Under the contract, China Fire will serve as a total solution provider for the Vindhyachal Super Thermal Power Station ("Vindhyachal"), Stage IV (2 x 500 MW) project, in the State of Madhya Pradesh, India. China Fire will be responsible for implementing the entire fire protection system for the project, including design, engineering, manufacture, procurement, transportation, construction, inspection, commissioning, technical guidance and maintenance. China Fire will also provide its UL-certified linear heat detectors to ensure protection and safety from fire hazards for the project's entire facility. The project is expected to be completed within the next two and a half years.

NTPC is the largest power company in India, operating 22 power stations with total installed capacity of 30,644 MW. NTPC is also diversified into hydro power, coal mining, oil and gas exploration, power distribution and trading, and nuclear power development. Vindhyachal, after the recently-completed Stage III, today has a total capacity of 3,260 MW and is the largest power station in India. At the completion of Stage IV, which is estimated to cost approximately INR 59.15 billion (approximately USD$1.27 billion), NTPC's Vindhyachal Super Thermal Power Station's total capacity should increase to 4,260 MW.

"We are very pleased to announce our recent contract win with NTPC, the largest power company in India. This contract win further demonstrates the success of our international expansion strategy and our strong competitive position in the global fire protection industry," commented Mr. Brian Lin, Chief Executive Officer of China Fire. "Although the Chinese government's recent limit on the iron and steel industry's capacity expansion may temporarily defer new contracts in our domestic market, we are excited about our momentum in the international markets. We believe India's enormously-unmet infrastructure needs will generate an abundance of new business opportunities across various industries. According to a report by PricewaterhouseCoopers, the Indian government will spend more than US$500 billion in new infrastructure projects, constructing and retrofitting the nation's power plants, iron and steel plants, airports, and transportation systems, which should create ample revenue prospects for China Fire in the Indian market."

"Furthermore, China Fire's UL-certified, proprietary linear heat detectors will provide us strong competitive advantages, enabling us to gain market share and better pricing in the Indian and other international markets. We are also encouraged by our growing market presence through our partnership in India, which has successfully developed strong client relationships and generated many new bid opportunities. We are confident that this contract win with NTPC combined with our previously announced $2.1 million contract win for BALCO Captive Power Plant in India can serve to further solidify our relationships and drive additional wins. We believe that our state-of-art technology, proprietary patent products, and market leadership will allow China Fire to expand its market presence and secure more contract wins in the near future, and ultimately to deliver strong and sustainable financial performance and generate more value for our shareholders," concluded Mr. Brian Lin.

About Indian National Thermal Power Cooperation Limited ("NTPC")

NTPC, India's largest power company, was set up in 1975 to accelerate power development in India. It has emerged as an "Integrated Power Major", with a significant presence in the entire value chain of power generation business. NTPC ranked 317th in the "2009 Forbes Global 2000" ranking of the world's biggest companies. With a current generating capacity of 30,644 MW, NTPC has embarked on plans to become a 75,000 MW company by 2017.

NTPC contributed 29.25% of the total electricity generated in the country during 2006-2007 with a 20.71% share of total installed capacity of the nation including capacity and generation of joint venture companies. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53,000 MW, 10,000 MW through gas, 9,000 MW through hydro generation, about 2,000 MW from nuclear sources and around 1,000 MW from renewable energy sources.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Group's future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

     China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

     ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com

The Roth China Conference is being held from Monday, October 12, 2009, through Wednesday, October 14, 2009, at the Fontainebleau, Miami Beach, FL. Management is currently scheduled to meet with institutional investors and to present on October 13, 2009 at 1:30 PM ET.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

    China Fire & Security Group, Inc.
    Shayla Suen, Investor Relations
    Tel:   +86-10-8441-7400
    Email: ir@chinafiresecurity.com

    ICR, Inc.
    In China:
    Michael Tieu or Bill Zima
    Tel:   +86-10-6599-7960 or +86-10-6599-7969
    Email: michael.tieu@icrinc.com or william.zima@icrinc.com

    In the U.S.:
    Brian M. Prenoveau, CFA
    Tel:   +1-203-682-8200
    Email: brian.prenoveau@icrinc.com

The Susquehanna Financial Group's Third Annual Beijing Management Summit is being held Wednesday & Thursday, September 16 & 17, 2009, at the Grand Hyatt Beijing Hotel in Beijing, China. Management is scheduled to present on September 16, from 3:25pm to 3:55pm China Time, in Grand Salon III. Management will also be available for one-on-one meetings on September 16.

Interested parties and investors who wish to meet with CFSG management may contact Susquehanna Financial Group institutional sales representatives directly.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

     China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

     ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com

    1. To elect seven persons to the Board of Directors of the Company, each
       to serve until the next Annual Meeting of shareholders of the Company
       or until such person shall resign, be removed or otherwise leave office;

    2. To transact such other business as may properly come before the Annual
       Meeting or any adjournment thereof.

Only shareholders of record at the close of business on August 27, 2009 are entitled to notice and to vote at the Annual Meeting and any adjournment. Shareholders are cordially invited to attend the Annual Meeting.

A Proxy Statement describing the matters to be considered at the Annual Meeting is available online at the web links shown below. Our 2008 Annual Report is also available online, but it is not deemed to be part of the Proxy Statement.

Shareholders can choose to view or download the proxy materials, including the Company's 2008 Annual Report and Proxy Statement online at info@transferonline.com or writing to: Transfer Online, Inc. 317 SW Alder ST, 2nd Floor, Portland, OR 97204, United States.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 76 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

     China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

     ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com

Second quarter 2009 Results

For the second quarter of 2009, revenue increased 36.5% to $22.7 million compared to $16.7 million for the same period in 2008, benefiting from higher sales of system contracting projects and products during the period. The Company recognized revenues from 205 total solution, product sales and maintenance contracts for the three months ended June 30, 2009 as compared to 177 contracts for the three months ended June 30, 2008.

Gross margin for the second quarter of 2009 expanded 260 basis points to 63.8%, versus gross margin of 61.2% for the same period of 2008. This increase in gross margin was mainly attributable to higher total solution projects from iron and steel industry employing the Company's high-margin, proprietary products.

Operating income grew 45.1% to $9.6 million, from $6.6 million for the same period last year. Driven by the increase in revenue and higher gross margin, operating margin expanded 250 basis points to 42.1% from 39.6% a year ago. Operating expenses were $4.9 million for the second quarter of 2009, or 21.7% of total revenue, compared to $3.6 million, or 21.5% of total revenue for the same period of 2008. Tax expense was $1.4 million for an effective tax rate of 14.0%, compared to 0.2% a year ago.

Net income was $8.3 million, an increase of $1.7 million, or 24.9%, as compared to $6.7 million for the same period of 2008. As a result, fully diluted EPS increased 24.4% to $0.29 in the second quarter of 2009, versus $0.24 in the second quarter of the prior year.

Mr. Brian Lin, Chief Executive Office of China Fire commented, "I am very pleased with our second quarter results. The Chinese government's stimulus plan and the new amendment to the Fire Protection Law, which requires all fire protection products to pass compulsory product certification, has improved demand for our high quality systems, and increased bidding activities from our Tier-1 customers. With our greater and deeper expertise, we significantly improved our efficiency in the execution of large iron and steel projects and reached a new record high gross margin in the second quarter. Our backlog remains strong at $85 million at the end of June 2009, which provides extra confidence to our existing revenue forecast."

Liquidity and Capital Resources

As of June 30, 2009, the Company had cash of $27.8 million, working capital of $75.2 million, and zero debt. Net cash provided by operating activities was $2.9 million for the six months ended June 30, 2009, compared to net cash provided by operating activities of $3.5 million in the same period of 2008.

Financial Outlook for 2009

For the full year 2009, the Company has reaffirmed its revenue guidance of $88 million to $95 million and raised its projected net income to a range of $28.3 million to $29.7 million, or $1.00 to $1.05 per diluted share, compared to the Company's previous earnings target of $0.93 to $1.00 per diluted share.

Mr. Lin commented, "We continue to be excited with the growth prospects in our core iron and steel market, and we continue to command firm pricing for our total solutions, as our gross margin continues to exceed our target range. We also are excited about our contract wins in the nuclear, power, petrochemical, and transportation verticals, as well as in the international market. We also have been actively working with a few select high-end customers to provide retrofitting systems for all their existing plants and provide fire protection maintenance safety services for all their facilities in light of the stricter regulations. We intend to sustain our current momentum and believe that our technical strengths and leading market position will enable us to seize more growth opportunities from the rebounding macro economy and industrial revitalization and consolidation plans. In addition, we are optimistic that our new Photoelectric Products Center will complete the development of several of our next generation products, including our Tri-Band Infrared Flame Detector, Infrared Combustible Gas Detector and Fiber-Optic-Based Linear Heat Detector.

"We are confident about our strategy and our technical expertise in fire safety. The Chinese government's stimulus plan and new loans have had a strong positive effect on domestic spending, which has resulted in increased manufacturing activity. Bidding activities at our Tier-1 customers continue to trend upward, and we continue to benefit from the accelerated infrastructure upgrades across our targeted verticals. As we continue to grow our leading brand, distribution, customer base, total solution offering, and competitive advantages in the rapidly growing Chinese industrial fire protection industry, I am excited about the remainder of 2009. We are confident that our growing cash position, healthy cash flows, and zero debt position us well for higher revenues, greater profits, and a stronger pipeline of expansion prospects, including additional international growth markets and strategic consolidation opportunities."

Conference Call

The Company will hold a conference call to discuss the financial results at 8:00 a.m. ET today, August 10, 2009. The Company invites you to join the call by dialing 1-913-312-0677. To listen to the live webcast of the event, please go to http://www.chinafiresecu... and click on the Investor Relations section where conference calls are posted. Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from August 10, 2009 to August 17, 2009. Listeners may access the replay by dialing 1-719-457-0820, passcode: 8455388.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

For more information, please contact:

China Fire & Security Group, Inc.
Shayla Suen, Investor Relations
Tel: +86-10-8441-7400
Email: ir@chinafiresecurity.com

ICR, Inc.
In China:
Michael Tieu or Bill Zima
Tel: +86-10-6599-7960 or +86-10-6599-7969
Email: michael.tieu@icrinc.com or william.zima@icrinc.com

In the U.S.:
Brian M. Prenoveau, CFA
Tel: +1-203-682-8200
Email: brian.prenoveau@icrinc.com

(Financial Statements Follow)

CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2009 AND DECEMBER 31, 2008

ASSETS

June 30, December 31,
2009 2008
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 27,792,235 $ 26,655,333
Restricted cash 4,190,519 5,377,933
Notes receivable 3,372,656 3,670,259
Accounts receivable, net of allowance for
doubtful accounts of $5,026,230 and
$4,370,362 as of June 30, 2009 and
December 31, 2008, respectively 28,341,492 25,826,343
Receivables from related party 503,544 466,223
Other receivables 1,964,715 1,532,259
Inventories 6,272,149 6,538,938
Costs and estimated earnings in excess
of billings 29,148,480 17,821,708
Employee advances 1,076,424 743,868
Prepayments and deferred expenses 3,427,234 2,816,976

Total current assets 106,089,448 91,449,840

PLANT AND EQUIPMENT, net 9,216,505 8,445,254

OTHER ASSETS:
Restricted cash - non current 3,869,295 1,872,828
Accounts receivable - retentions 2,640,877 1,107,450
Advances on building and equipment purchases -- 249,859
Investment in joint ventures 1,167,010 1,167,238
Intangible assets, net of accumulated
amortization 1,077,982 1,116,449
Total other assets 8,755,164 5,513,824

Total assets $124,061,117 $105,408,918

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable $ 6,969,382 $ 6,664,090
Customer deposits 3,064,353 6,102,026
Billings in excess of costs and estimated
earnings 2,034,737 4,237,528
Other payables 1,114,393 837,973

Accrued liabilities 11,342,948 6,785,409
Taxes payable 6,395,258 2,092,745

Total current liabilities 30,921,071 26,719,771

COMMITMENTS AND CONTINGENCIES

EQUITY:
Common stock, $0.001 par value, 65,000,000
shares authorized, 27,593,275 and
27,586,593 shares issued and outstanding
as of June 30, 2009 and December 31, 2008,
respectively 27,593 27,586

Additional paid-in-capital 19,847,499 19,357,409
Statutory reserves 7,148,827 7,148,827

Retained earnings 58,832,006 44,850,181
Accumulated other comprehensive income 7,196,221 7,305,144

Total shareholders' equity 93,052,146 78,689,147

Noncontrolling interest 87,900 --

Total equity 93,140,046 78,689,147

Total liabilities and equity $124,061,117 $105,408,918

CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
REVENUES
System contracting
projects $ 18,290,930 $14,557,008 $31,294,114 25,886,388
Products 3,791,491 1,533,965 6,915,813 4,415,136
Maintenance services 649,447 562,751 1,234,152 1,048,826
Total revenues 22,731,868 16,653,724 39,444,079 31,350,350

COST OF REVENUES
System contracting
projects 6,970,283 5,971,745 11,777,541 11,541,955
Products 865,395 217,498 2,077,048 1,059,380

Maintenance services 395,619 280,188 792,160 520,327
Total cost of
revenues 8,231,297 6,469,431 14,646,749 13,121,662
GROSS PROFIT 14,500,571 10,184,293 24,797,330 18,228,688

OPERATING EXPENSE
Selling and
marketing 2,237,873 1,824,422 4,140,191 3,335,713
General and
administrative 1,983,443 977,967 3,664,082 2,427,448
Depreciation and
amortization
expenses 183,456 154,688 376,850 321,950
Research and
development 519,987 627,952 834,017 894,601
Total operating
expense 4,924,759 3,585,029 9,015,140 6,979,712
INCOME FROM
OPERATIONS 9,575,812 6,599,264 15,782,190 11,248,976
OTHER INCOME (EXPENSE)
Other income 110,346 110,237 222,299 221,643
Other expense (45) (85,332) (1,302) (85,388)
Interest income, net 7,206 63,384 129,302 91,744
Total other income 117,507 88,289 350,299 227,999
INCOME BEFORE
PROVISION FOR INCOME
TAXES 9,693,319 6,687,553 16,132,489 11,476,975
PROVISION FOR INCOME
TAXES 1,357,097 11,453 2,150,664 60,095
NET INCOME
ATTRIBUTABLE
TO CONTROLLING 8,336,222 6,676,100 13,981,825 11,416,880
INTEREST
OTHER COMPREHENSIVE
INCOME (LOSS)
Foreign currency
translation
adjustment 69,294 1,293,683 (108,923) 3,360,599

COMPREHENSIVE INCOME $ 8,405,516 $ 7,969,783 $ 13,872,902 14,777,479

BASIC EARNINGS PER
SHARE
Weighted average
number of shares 27,588,598 27,557,297 27,587,595 27,557,095
Earnings per share $ 0.30 $ 0.24 $ 0.51 0.41

DILUTED EARNINGS PER
SHARE
Weighted average
number of shares 28,298,850 28,200,785 28,258,225 28,179,595
Earnings per share $ 0.29 $ 0.24 $ 0.49 0.41

Listeners may access the call by dialing # 1-913-312-0677. To listen to the live webcast of the event, please go to http://www.chinafiresecu... and click on the Investor Relations section where conference calls are posted. Please go to the website 15 minutes early to download and install any necessary audio software.

A replay of the call will be available from August 10, 2009 to August 17, 2009. Listeners may access the replay by dialing #1-719-457-0820, passcode: 8455388.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (Nasdaq: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

For more information, please contact:

China Fire & Security Group, Inc.
Shayla Suen, Investor Relations
Tel: +86-10-8441-7400
Email: ir@chinafiresecurity.com

ICR, Inc.
In China:
Michael Tieu or Bill Zima
Tel: +86-10-6599-7960 or +86-10-6599-7969
Email: michael.tieu@icrinc.com or william.zima@icrinc.com

In the U.S.:
Brian M. Prenoveau, CFA
Tel: +1-203-682-8200
Email: brian.prenoveau@icrinc.com

China Fire's three products that were tested and certified by UL were its: Nonrestorable Fixed-Temperature Line-Type Heat Detector, Restorable Fixed-Temperature Line-Type Heat Detector and Restorable Rate of Rise & Fixed-Temperature Line-Type Heat Detector. These products have many competitive advantages over peer products, including China Fire's proprietary "Rate of Rise in Temperature" technology that differentiates temperature rises caused by fire hazards from rises caused by environmental or non-dangerous sources, their superior operating distance and their automatic notifications sent to the monitoring system when maintenance and repairs are needed. China Fire's proprietary "Fixed-Temperature" technology also enables its LHDs to veritably "fix" their alarm temperature, so that it is not affected by heated cable length and ambient temperature as in competing products.

China Fire's LHDs have already won dozens of patents worldwide and enabled the Company to become one of China's leaders for national fire protection products. Domestically, China Fire's LHD products have influenced the industry standards and its proprietary LHDs have come to be considered irreplaceable in fire solution systems for the iron and steel industry.

"Achieving certification by Underwriters Laboratories, a world leader in product safety testing, is an important milestone in our company vision of persistent technology innovation and greater market positioning," commented Mr. Brian Lin, Chief Executive Officer of China Fire. "As we mentioned during our previous earnings call, China Fire is actively pursuing fire protection projects and product sales in international markets, as well as diversifying the revenue stream and customer base by expanding into other verticals. UL certification will give China Fire a competitive advantage that enables us to gain more market share and better pricing in international markets and effectively help the Company expand into more industrial verticals and more complex environments. Moreover, UL Certification also serves as a criterion for the Company to be recognized by the government with a National Hi-Tech Company award, which would enable the Company to benefit from numerous favorable governmental policies. We believe that our cutting-edge technology, proprietary patent protection and our leadership in influencing national fire safety standards will continuously bring strong market position and lasting advantages that allow China Fire to deliver strong, sustainable, long-term financial performance, and ultimately to reward our investors with shareholder value."

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

For more information, please contact:

China Fire & Security Group, Inc.
Shayla Suen, Investor Relations
Tel: +86-10-8441-7400
Email: ir@chinafiresecurity.com

ICR, Inc.
In China:
Michael Tieu or Bill Zima
Tel: +86-10-6599-7960 or +86-10-6599-7969
Email: michael.tieu@icrinc.com or william.zima@icrinc.com

In the U.S.:
Brian M. Prenoveau, CFA
Tel: +1-203-682-8200
Email: brian.prenoveau@icrinc.com

BEIJING, May 11 /PRNewswire-Asia-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News; "China Fire" or "the Company"), a leading total solution provider of industrial fire protection systems in China, today announced its financial results for the first quarter ended March 31, 2009.

First Quarter 2009 Results

For the first quarter of 2009, revenue increased 13.7% to $16.7 million compared to $14.7 million for the same period in 2008, benefiting from higher sales of system contracting projects and maintenance services during the period.

Gross margin for the first quarter of 2009 expanded 690 basis points to 61.6%, versus gross margin of 54.7% for the same period of 2008. The higher gross margin was mainly driven by enhanced execution efficiency in completing total solution contracting projects.

Operating income grew 33.5% to $6.2 million, from $4.6 million for the same period last year. Driven by the increase in revenue and higher gross margin, operating margin expanded 550 basis points to 37.1% from 31.6% a year ago. Operating expenses were $4.1 million for the first quarter of 2009, or 24.5% of total revenue, compared to $3.4 million, or 23.1% of total revenue for the same period of 2008. Tax expense was $0.8 million for an effective tax rate of 12.3%, compared to 1.0% a year ago.

Net income was $5.6 million, an increase of $0.9 million, or 19.1%, as compared to $4.7 million for the same period of 2008. As a result, fully diluted EPS increased 18.8% to $0.20 in the first quarter of 2009, versus $0.17 in the first quarter of the prior year.

Mr. Brian Lin, Chief Executive Office of China Fire commented, "Given that the first quarter is seasonally the slowest period due to the Chinese New Year holidays, I am pleased that our first quarter results validate our growth strategy and demonstrate our sound execution. Despite a tendency of customers to defer starting projects around the holiday season, during the quarter, we successfully executed large projects for two of our Tier-1 customers, Xinyu Iron and Steel Group and Capital Iron and Steel Group. With our greater and deeper expertise, we significantly improved our efficiency in the execution of these key projects and substantially lowered our costs. Consequently, our gross margin for the first quarter was a record high. We also successfully expanded our customer base in product sales and maintenance services, and we exceeded our internal target for new contract wins during the quarter. Our backlog, which includes winning bids, grew by $13 million, or 18%, sequentially, to $85 million at the end of March 2009. We expect to convert a

majority of the total backlog to revenue in the remainder of 2009, which provides extra confidence to our existing forecast."

Liquidity and Capital Resources

As of March 31, 2009, the Company had working capital of $70 million and zero debt. Net cash provided by operating activities was $2.5 million in the first quarter of 2009, compared to net cash used by operating activities of $ 1.8 million in the same period of 2008. As a result, net cash increased $2.7 million to $29.4 million at the end of March 31, 2009, from $26.7 million at the end of 2008.

Financial Outlook for 2009

For the full year 2009, the Company reaffirms its revenue projection of $88 million to $95 million. The Company also reaffirms that revenue will grow between 28% to 38%, and pre-tax income will grow between 22% to 32% to a range of $30.2 million to $32.6 million. The Company estimates that assuming an effective tax rate of 13%, net income will grow between 7% to 15% to a range of $26.3 million to $28.4 million, or $0.93 to $1.00 per diluted share, based on 28.3 million shares.

"Supported by our strong new contract wins and record backlog, we remain confident about the business and the growth of the fire protection industry in China. In our view, the Chinese government's stimulus plan has shown early signs of success, as bidding activities at our Tier-1 customers continue to trend up, and we continue to benefit from the accelerated infrastructure upgrades across our targeted verticals. The recent sharp rise in CLAS's purchasing managers' index for China is another indicator that manufacturing in China is heading towards reacceleration. We believe we are well positioned to capture revenue opportunities arising from improving market conditions.

We continue to be excited with the growth prospects in our core iron and steel market, and we continue to command firm pricing for our total solutions, as our gross margin continues to exceed our target range. We also are excited with our contract wins in the nuclear, power, and petrochemical, as well as in the international market.

It is worth noting again that our strategy has been to focus on further expanding our brand, our market leadership, and our technical leadership in fire safety. To that extent, we have built our industry's leading brand, distribution, total solution offering, and manufacturing capabilities. We currently hold 76 patents with 37 patents pending. We are confident that our growing cash position, healthy cash flows, and zero debt position us well for higher revenues, greater profits, and a stronger pipeline of expansion prospects, including strategic consolidation opportunities," concluded Mr. Lin.

Conference Call

The Company will hold a conference call to discuss the financial results at 8:00 a.m. ET on May 11, 2009. The Company invites you to join the call by dialing 1-480-629-9692. To listen to the live webcast of the event, please go to http://www.chinafiresecu... and click on the Investor Relations section where conference calls are posted. A replay of the call will be available from May 11, 2009 to May 18, 2009. Listeners may access the replay by dialing 1-303-590-3030, passcode: 4068548.

A replay of the call will be available from May 11, 2009 to May 18, 2009. Listeners may access the replay by dialing 1-303-590-3030, passcode: 4068548.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecu... .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

    China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com




               CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
     CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
               FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
                                    UNAUDITED

                                                Three Months Ended March 31,
                                                   2009              2008
    REVENUES
      System contracting projects         $     13,003,184  $     11,329,380
      Products                                   3,124,322         2,881,171
      Maintenance services                         584,705           486,075
          Total revenues                        16,712,211        14,696,626
    COST OF REVENUES
      System contracting projects                4,807,258         5,570,210
      Products                                   1,211,653           841,882
      Maintenance services                         396,541           240,139
          Total cost of revenues                 6,415,452         6,652,231
    GROSS PROFIT                                10,296,759         8,044,395
    OPERATING EXPENSE
      Selling and marketing                      1,902,318         1,162,062
      General and administrative                 1,680,639         1,798,710
      Depreciation and amortization                193,394           167,262
      Research and development                     314,030           266,649
          Total operating expense                4,090,381         3,394,683
    INCOME FROM OPERATIONS                       6,206,378         4,649,712
    OTHER INCOME (EXPENSE)
       Other income                                111,953           111,350
       Other expense                                (1,257)               --
       Interest income                             122,096            28,360
          Total other income (expense)             232,792           139,710
    INCOME BEFORE PROVISION FOR INCOME
    TAXES                                        6,439,170         4,789,422
    PROVISION FOR INCOME TAXES                     793,567            48,642
    NET INCOME                                   5,645,603         4,740,780
    OTHER COMPREHENSIVE INCOME
       Foreign currency translation
        adjustment                                (227,368)        2,066,916
    COMPREHENSIVE INCOME                  $      5,418,235  $      6,807,696
    BASIC EARNINGS PER SHARE
       Weighted average number of shares        27,586,593        27,556,893
       Earnings per share                 $           0.20  $           0.17
    DILUTED EARNINGS PER SHARE
       Weighted average number of shares        28,210,911        28,153,181
       Earnings per share                 $           0.20  $           0.17




               CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                   AS OF MARCH 31, 2009 AND DECEMBER 31, 2008
                                     ASSETS
                                                    March 31,    December 31,
                                                      2009           2008
    CURRENT ASSETS:                                (Unaudited)
     Cash and cash equivalents                  $  29,356,116  $  26,655,333
     Restricted cash                                4,212,181      5,377,933
     Notes receivable                               1,031,811      3,670,259
     Accounts receivable, net of allowance for
      doubtful accounts of $4,642,324 and
      $4,370,362 as of March 31, 2009 and
      December 31, 2008, respectively              26,588,723     25,826,343
     Receivables from related party                   503,544        466,223
     Other receivables                              1,663,413      1,532,259
     Inventories                                    6,027,870      6,538,938
     Costs and estimated earnings in excess of
      billings                                     22,953,939     17,821,708
     Employee advances                              1,236,897        743,868
     Prepayments and deferred expenses              2,389,344      2,816,976
        Total current assets                       95,963,838     91,449,840
    PLANT AND EQUIPMENT, net                        8,540,571      8,445,254
    OTHER ASSETS:
     Restricted cash - non current                  2,602,073      1,872,828
     Accounts receivable - retentions               1,363,980      1,107,450
     Advances on building and equipment
      purchases                                            --        249,859
     Investment in joint ventures                   1,167,010      1,167,238
     Intangible assets, net of accumulated
      amortization                                  1,096,800      1,116,449
        Total other assets                          6,229,863      5,513,824
          Total assets                          $ 110,734,272  $ 105,408,918

                      LIABILITIES AND SHAREHOLDERS' EQUITY
    CURRENT LIABILITIES:
     Accounts payable                           $   6,023,062  $   6,664,090
     Customer deposits                              5,138,306      6,102,026
     Billings in excess of costs and estimated
      earnings                                      2,780,379      4,237,528
     Other payables                                   448,707        837,973
     Accrued liabilities                            7,795,775      6,785,409
     Taxes payable                                  4,195,612      2,092,745
        Total current liabilities                  26,381,841     26,719,771
    COMMITMENTS AND CONTINGENCIES
    SHAREHOLDERS' EQUITY:
     Common stock, $0.001 par value, 65,000,000
      shares authorized, 27,586,593 shares
      issued and outstanding as of March 31,
      2009 and December 31, 2008                       27,586         27,586
     Additional paid-in-capital                    19,602,458     19,357,409
     Statutory reserves                             7,148,827      7,148,827
     Retained earnings                             50,495,784     44,850,181
     Accumulated other comprehensive income         7,077,776      7,305,144
        Total shareholders' equity                 84,352,431     78,689,147
          Total liabilities and shareholders'
           equity                               $ 110,734,272  $ 105,408,918

Formed through a merger of three Shandong-based iron & steel companies in 2000, Jigang is China's eighth-largest steel producer and is the leading exporter of medium and thick steel plates. With an annual production capacity of 12 million tons of crude steel and products which include hot rolled steel and plate, anti-seawater corrosion hull plate, boiler plate, diamond plate, and round steel, Jigang sells mainly to the shipping, automobile, and construction industries.

As a key component of China's Eleventh Five-Year Plan for industrial upgrades and environmental protection, the government is vigorously pushing forward its restructuring program to upgrade China's iron & steel companies and significantly reduce pollution emission. Jigang's newest facility, with cutting-edge metallurgical technologies and modern furnaces, is an important demonstration of the program's progress. When fully completed, Jigang will have higher capacity, produce more varieties of steel products, and emit significantly lower levels of pollution.

Under this contract, China Fire will serve as a total fire protection solution provider and be responsible for implementing the entire automated fire protection system, including engineering, procurement, construction, monitoring, technical guidance and maintenance. China Fire will provide a turn-key fire protection system, which includes the Company's analog linear fire detectors, fire-alarm monitoring and control system, and water mist fire-extinguishing system. These systems will ensure that the entire production facility is safe from fire hazards and fully compliant with the new fire codes of the iron and steel industry. The project is expected to be completed within the next 12 months.

"We're delighted to be the provider of turn-key fire protection for Jigang, as this contract win is another example of not only our leading market position but also the wide recognition of our technical expertise in implementing environmental-friendly projects," commented Mr. Brian Lin, Chief Executive Officer of China Fire. "Even in light of a higher emphasis on cost reduction by many manufacturers in the current macroeconomic environment, I'm pleased that we continue to command firm pricing in competitive wins, as we continue to provide an unmatched value proposition through our unique combination of leading brand, technical superiority, patented products and comprehensive fire protection solutions.

"This contract win is also a direct example of China's stimulus measures to bolster steel-reliant industries. At the end of March 2009, China's State Council released details of its China Iron & Steel Industry's Revitalization Scheme, which promotes total production control, encourages industry consolidations, and emphasizes the development of new technologies. This stimulus plan provides financial subsidies and loan discounts to leading iron & steel companies, allowing larger and more advanced steel producers to upgrade existing plants and to build new ground-breaking facilities, which has recently accelerated demand for our fully-compliant turn-key fire protection solutions.

"We are especially pleased to add another top steel producer to our significant Tier-1 customer base, and will continue to serve our clients with the best fire protection solutions available on the market. As the government aims to create four iron & steel giants -- all of which are major existing customers of ours, we believe that China Fire is well positioned to capture a large share of these sizable opportunities. Our deep relationships with these giants and other advanced steel producers continue to further expand our market leadership, while our gainful technical know-how continues to bear new innovations in China's industrial fire protection. At present, our turn-key systems can truly ensure that our customers' production facilities are fully compliant with China's new mandatory fire codes, and therefore, we believe that they are indispensable for new or recently-upgraded iron & steel production facilities," Mr. Lin concluded.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (Nasdaq: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

     China Fire & Security Group, Inc.
      Shayla Suen, Investor Relations
      Tel:   +86...
      Email: ir@chinafiresecurity.com

     ICR, Inc.
     In China:
      Michael Tieu or Bill Zima
      Tel:   +86-10-6599-7960 or +86-10-6599-7969
      Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
      Brian M. Prenoveau, CFA
      Tel:   +1-203-682-8200
      Email: brian.prenoveau@icrinc.com

BEIJING, March 11 /PRNewswire-Asia-FirstCall/ -- China Fire & Security Group, Inc. (Nasdaq: CFSG - News; "China Fire" or "the Company"), a leading total solution provider of industrial fire protection systems in China, today announced its financial results for the fourth quarter and year ended December 31, 2008.

Fourth Quarter 2008 Results

For the fourth quarter of 2008, revenue increased 48.7% to $21.0 million compared to $14.1 million for the same period in 2007. The Company continued to benefit from its strong pipeline of new total solution projects, as well as, uninterrupted completion of milestones on large projects. Gross margin for the fourth quarter of 2008 was 54.0%, 110 basis points higher than the gross margin of 52.9% for the same period of 2007. The increase in gross margin was mainly due to the use of a higher percentage of the Company's proprietary products that tend to contribute higher margins and the higher selling price of some of the Company's proprietary products.

Operating income was $6.2 million, representing a 55.2% increase from the same period last year. Operating margins for the period expanded 120 basis points to 29.5% from 28.3% a year ago, primarily driven by the higher gross margin. Operating expenses were $5.2 million for the fourth quarter of 2008, or 24.8% of total revenue, compared to $3.5 million, or 24.7% of total revenue for the same period of 2007.

Net income was $6.8 million for the fourth quarter of 2008, an increase of $2.8 million, or 69.2%, as compared to $4.0 million for the same period of 2007. The increase was mainly driven by the strong revenue growth and higher gross margin. As a result, fully diluted EPS increased 72.9% to $0.24 in the fourth quarter of 2008, versus $0.14 in the fourth quarter of the prior year.

Mr. Brian Lin, Chief Executive Office of China Fire commented, "We are very pleased to report strong fourth quarter and full year financial results. Our record results in 2008 validate our organic growth strategy to increase market share in the rapidly growing Chinese industrial fire protection industry.

Despite general concerns of challenging times for the iron and steel industry, we are actually witnessing strong demand for our total solutions in this vertical, as some of our Tier-1 customers are receiving more government-subsidized funding, pickup in demand from the end of last year, and extra government support for consolidation. As China continues to invest in upgrading the country's infrastructure, we are seeing real spending initiated by the government in the iron and steel, nuclear, power, petrochemical, and transportation sectors. We believe that most of these infrastructure investments will directly benefit China Fire, as they all require fire protection products and services. As such, we continue to be excited with the growth prospects in our core iron and steel market, and we continue to command firm pricing for our total solutions. We also are excited with our success in winning sizeable contracts in the nuclear, power, petrochemical, and transportation verticals, as well as notable contract wins in the international market. We are delighted with our strong financial position, which includes a growing cash position, no debt, and healthy cash flows. We believe that we are in an excellent position to capture new revenue opportunities and benefit from strategic consolidation opportunities."

Full Year 2008 Results

Revenues for 2008 increased 47.8% to $69.1 million compared to $46.8 million for 2007. During 2008, the Company fulfilled 333 total solution and product sales contracts compared to 274 contracts in 2007, primarily due to the increase in revenues from system contracting projects and maintenance services. Gross margin for 2008 was 57.2%, 230 basis points higher than the gross margin of 54.9% in 2007, benefiting from a higher percentage of the Company's self-manufactured proprietary products sold, which contribute higher gross margins than outsourced products manufactured by the third party.

Operating income was $23.6 million for 2008, as compared to $14.9 million for 2007, an increase of $8.7 million or 58.3%, driven by the strong revenue growth and higher gross margin in 2008. Operating margins in 2008 expanded 230 basis points to 34.1% compared to 31.8% in 2007, even while total operating expenses increased to $15.9 million as compared to $10.8 million in 2007. The increase in operating expenses was mainly due to the increase in the Company's selling expense and R&D expenditure during the period.

GAAP net income was $24.7 million for 2008 as compared to $16.8 million for 2007, representing an increase of $7.9 million or 47.0%. Excluding a one-time non-cash gain of $1.2 million, or $0.05 per diluted share, for the change in fair value of derivative instrument in the full year 2007, non-GAAP net income in 2008 increased 58.4% from $15.6 million in 2007. GAAP fully diluted EPS increased 44.6% to $0.88 in 2008, compared to $0.61 in the prior year.

Liquidity and Capital Resources

As of December 31, 2008, the Company had working capital of $64.7 million and zero debt. Net cash provided by operating activities was $13.4 million in 2008, compared to $9.8 million in 2007. As a result, net cash increased $9.5 million to $26.7 million at the end of 2008, from $17.1 million at the end of 2007.

Financial Outlook for 2009

For the full year 2009, the Company anticipates revenue will grow between 28% to 38% to a range of $88 million to $95 million. Pre-tax income is expected to grow between 22% to 32% to a range of $30.2 million to $32.6 million. Assuming an effective tax rate of 13%, net income is estimated to grow between 7% to 15% to a range of $26.3 million to $28.4 million, or $0.93 to $1.00 per diluted share, based on 28.3 million shares. The Company's effective tax rate in 2008 was 0.2%.

"We remain confident about the business and the growth of the fire protection industry in China. Our strategy has been to focus on further expanding our brand, our market leadership, and our technical leadership in fire safety. To that extent, we have built our industry's leading brand, distribution, total solution offering, and manufacturing capabilities. We currently hold 76 patents with 37 patents pending. Our initiatives position us well for higher revenues, greater profits, and a stronger pipeline of expansion opportunities.

In the coming year, we will continue to implement our proven strategy, as demand in our core markets continues to grow, and our competitive advantages and leadership profile continue to expand. We will continue to focus on our core Tier-1 customers in China's iron and steel industry, expand into our targeted complementary verticals, invest in technology innovations, influence the development of new fire standards, and actively pursue domestic and international fire protection projects. As we pursue our future growth opportunities, we remain highly focused on optimizing our balance sheet and maximizing cash flows. We are encouraged with our opportunities in 2009 and look forward to expanding our market position in the year ahead," concluded Mr. Lin.

Conference Call

The Company will report its fourth quarter and full year 2008 earnings results on Thursday, March 12, 2009, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing Time). Interested participants should call 1-800-860-2442 when calling within the United States, or 1-412-858-4600 when calling internationally. The pass code is "China Fire".

This call is being web cast by Multivu and can be accessed by clicking on this link http://www.visualwebcaster.com/event... .

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (Nasdaq: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

    China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com



              CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
             (FORMERLY KNOWN AS UNIPRO FINANCIAL SERVICES, INC.)
          CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
              FOR THE QUARTERS ENDED DECEMBER 31, 2008 AND 2007

                          Expressed in U.S. dollars
                   (Except for share and per share amounts)

                                                  Three Months Ended
                                                     December 31
                                                2008                2007
    REVENUES
      System contracting projects          $  16,041,738       $  11,311,091
      Products                                 4,279,980           1,764,761
      Maintenance services                       663,784           1,034,368
          Total revenues                      20,985,502          14,110,220
    COST OF REVENUES
      System contracting projects              7,803,158           5,594,462
      Products                                 1,382,206             623,769
      Maintenance services                       395,384             421,858
          Total cost of revenues               9,580,748           6,640,089
    GROSS PROFIT                              11,404,754           7,470,131
    OPERATING EXPENSE
      Selling and marketing                    1,842,289             848,404
      General and administrative               2,659,008           2,270,760
      Depreciation and amortization              266,490             147,818
      Research and development                   445,993             215,253
          Total operating expense              5,213,780           3,482,235
    INCOME FROM OPERATIONS                     6,190,974           3,987,896
    OTHER INCOME (EXPENSE)
       Other income                              428,182               3,657
       Other expense                             (38,557)             (7,115)
       Interest income                           242,473               57604
       Change in fair value of
        derivative instruments                         0                   0
          Total other income                     632,098              54,146
    INCOME BEFORE PROVISION FOR
    INCOME TAXES                               6,823,072           4,042,042
    PROVISION FOR INCOME TAXES                    (5,936)              5,081

    NET INCOME                                 6,829,008           4,036,961



              CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
             (FORMERLY KNOWN AS UNIPRO FINANCIAL SERVICES, INC.)
       CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
                FOR THE YEARS ENDED DECEMBER 31, 2008 AND 2007

                                                  2008              2007
    REVENUES

      System contracting projects            $  57,101,984     $  34,581,376

      Products                                   9,673,922        10,592,683

      Maintenance services                       2,303,213         1,579,778
          Total revenues                        69,079,119        46,753,837

    COST OF REVENUES

      System contracting projects               25,805,086        16,158,844

      Products                                   2,558,844         4,329,067

      Maintenance services                       1,217,316           602,943
          Total cost of revenues                29,581,246        21,090,854


    GROSS PROFIT                                39,497,873        25,662,983

    OPERATING EXPENSE
      Selling and marketing                      6,434,887         3,907,067
      General and administrative                 6,680,992         5,661,356
      Depreciation and amortization                712,269           535,751
      Research and development                   2,102,976           672,379

          Total operating expense               15,931,124        10,776,553


    INCOME FROM OPERATIONS                      23,566,749        14,886,430

    OTHER INCOME (EXPENSE)
       Other income                                929,919           581,192

       Other expense                              (127,620)          (14,932)

       Interest income                             382,227           148,236

       Interest expense                                 --                --
       Change in fair value of derivative
        instruments                                     --         1,205,791

          Total other income (expense)           1,184,526         1,920,287

    INCOME BEFORE PROVISION FOR INCOME
     TAXES                                      24,751,275        16,806,717

    PROVISION FOR INCOME TAXES                      47,423             5,081


    NET INCOME                                  24,703,852        16,801,636

    OTHER COMPREHENSIVE INCOME
       Foreign currency translation
        adjustment                               3,737,027         2,502,595


    COMPREHENSIVE INCOME                     $  28,440,879     $  19,304,231

    BASIC EARNINGS PER SHARE

       Weighted average number of shares        27,568,214        26,873,742

       Earnings per share                    $        0.90     $        0.63

    DILUTED EARNINGS PER SHARE

       Weighted average number of shares        28,210,620        27,721,171

       Earnings per share                    $        0.88     $        0.61



              CHINA FIRE & SECURITY GROUP, INC. AND SUBSIDIARIES
             (FORMERLY KNOWN AS UNIPRO FINANCIAL SERVICES, INC.)
                         CONSOLIDATED BALANCE SHEETS
                       AS OF DECEMBER 31, 2008 AND 2007

                          ASSETS
                                                December 31,    December 31,
                                                   2008             2007
    CURRENT ASSETS:

     Cash and cash equivalents                 $  26,655,333   $  17,110,449
     Restricted cash                               5,377,933       3,829,927
     Notes receivable                              3,670,259       3,315,811
     Accounts receivable, net of
      allowance for doubtful
      accounts of $4,370,362 and
      $2,483,359 as of December
      31, 2008 and 2007,
      respectively                                25,826,343      16,525,161
     Receivables from related party                  466,223              --
     Other receivables                             1,532,259         748,195
     Inventories                                   6,538,938       4,048,283
     Costs and estimated earnings
      in excess of billings                       17,821,708      13,068,036
     Employee advances                               743,868       1,326,115
     Prepayments and deferred
      expenses                                     2,816,976       2,218,391
       Total current assets                       91,449,840      62,190,368

    PLANT AND EQUIPMENT, net                       8,445,254       6,568,250

    OTHER ASSETS:
     Restricted cash - non current                 1,872,828              --
     Accounts receivable -
      retentions                                   1,107,450         193,029
     Deferred expenses - non
      current                                             --          21,234
     Advances on building and
      equipment purchases                            249,859         366,317
     Investment in joint ventures                  1,167,238       1,156,294
     Intangible assets, net of
      accumulated amortization                     1,116,449       1,150,935
       Total other assets                          5,513,824       2,887,809

         Total assets                          $ 105,408,918   $  71,646,427

          LIABILITIES AND SHAREHOLDERS' EQUITY

    CURRENT LIABILITIES:

     Accounts payable                          $   6,664,090   $   6,327,182
     Customer deposits                             6,102,026       4,757,179
     Billings in excess of costs
      and estimated earnings                       4,237,528       4,882,217
     Other payables                                  837,973         168,868
     Accrued liabilities                           6,785,409       4,214,530
     Taxes payable                                 2,092,745       1,088,335
       Total current liabilities                  26,719,771      21,438,311

    COMMITMENTS AND CONTINGENCIES                         --              --

    SHAREHOLDERS' EQUITY:
     Common stock, $0.001 par value,
      65,000,000 shares authorized,
      27,586,593 shares and 27,556,893
      issued and outstanding as of
      December 31, 2008 and 2007,
      respectively                                    27,586          27,556
     Additional paid-in-capital                   19,357,409      19,317,287
     Statutory reserves                            7,148,827       5,067,061
     Retained earnings                            44,850,181      22,228,095
     Accumulated other comprehensive income        7,305,144       3,568,117
       Total shareholders' equity                 78,689,147      50,208,116

         Total liabilities and shareholders'
          equity                               $ 105,408,918   $  71,646,427

Formed through a merger of three northeast-Chinese iron & steel companies in 2004, Tegang is a multi-billion dollar producer of high-grade specialized steel and is the largest special steel company in northern China. With three production plants located in Dalian, Fushun and Beiman of Liaoning Province, Tegang has an annual production capacity of 3.3 million tons of crude steel and 3 million tons of special steel products, including stainless steel bars, steel tools, steel molds, steel springs, and steel bearings. Tegang's customers are primarily manufacturers of aviation, navigation, nuclear power, conventional weaponry, petrochemical, electronics, instruments and appliances, light textile, and automotive products.

In early 2008, as part of a key restructuring program pushed by the government to upgrade China's iron & steel companies and significantly reduce pollution emission in urban areas, Tegang began relocating its main production facility within Dalian to a site in the city's outskirts. When completed, the new production facility will have higher capacity, will be able to recycle all steel slag and will emit a significantly lower level of pollution, on par with strict European emission standards.

Under this contract with Tegang, China Fire will serve as a total fire protection solution provider and be responsible for implementing the entire automated fire protection system for its Dalian environmental relocation program, including engineering, procurement, construction, monitoring, technical guidance and maintenance. China Fire will provide a turn-key fire protection system, which includes the Company's analog linear fire detectors, fire-alarm monitoring and control system, and water mist fire-extinguishing system. These systems will ensure that the entire production facility is safe from fire hazards and fully compliant with the new fire codes of the iron and steel industry. The project is expected to be completed within the next 12 months.

''We are excited about the opportunity to provide our automated fire protection systems for Tegang,'' commented Mr. Brian Lin, Chief Executive Officer of China Fire. ''Riding on the strengths of our leading brand, technical superiority, patented products and comprehensive fire protection solutions, we continue to win competitive bids and command firm pricing.

''Although the demand for low-grade iron & steel has sharply declined, demand for Tegang's high-grade special steel products continues to grow healthily, driven directly by the government's massive 4-trillion Yuan (USD$585 billion) stimulus measures to bolster steel-reliant industries such as automobile and transportation. According to industry observers, approximately half of the stimulus package will be allocated for investments into steel-consuming infrastructure construction projects. In addition, China's State Council is expected to release in early March The China Iron & Steel Industry's Revitalization Scheme, which will provide financial subsidies and loan discounts to leading iron & steel companies.

''Furthermore, the government is keen on promoting energy efficiency and pollution reduction. However, most iron & steel companies in China today are still located in urban areas and continue to operate inefficient and dated facilities that waste energy and emit dangerous levels of pollution. As such, the government is actively pushing for their upgrades and relocations, which creates strong demand for our solutions.

''Our fire protection systems can truly ensure that our customers' production facilities are fully compliant with China's new mandatory fire codes, and therefore, we believe that they are indispensable for new or recently-upgraded iron & steel production facilities. We are especially pleased to add another top steel producer to our significant Tier-1 customer base, and will continue to serve our clients with the best fire protection solutions available on the market,'' Mr. Lin concluded.

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (Nasdaq: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:

    China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel: +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel: +1-203-682-8200
     Email: brian.prenoveau@icrinc.com

Mr. Weishe Zhang has been promoted to Chief Technology Officer (CTO) and Executive Director of China Fire. In this new role, he will expand the Company's technical lead and broaden its patent portfolio in China and abroad. Mr. Zhang has served as a technical advisor helping the growth of Sureland Industrial (a wholly owned subsidiary of China Fire) since it was founded in 1995. He joined Sureland Industrial full time in 2002 and had previously held various positions in research and development, including Director of System Integration, Director of Product Research and Development and Chief Engineer. Prior, Mr. Zhang held various technical and management positions including Chief Engineer and General Manager at several other large fire protection companies in China. An inventor of dozens of international and domestic patents, Mr. Zhang received a Master's Degree in Engineering from Beijing University of Aeronautics & Astronautics in 1989.

Mr. Weigang Li has been promoted to Vice President of Worldwide Sales of China Fire and General Manager of Sureland Industrial, positions that maximize his skill and success with key customer accounts, broad relationships in the industry, and profound knowledge of China Fire's organizational strengths. In this new role, Mr. Li will lead the Company's expansion into new regions and markets, as well as help deepen its relationship with existing Tier-1 customers. A founding member of Sureland Industrial and a driving force in the Company's early and present sales achievements, Mr. Li has been influential in winning a number of large, notable contracts since the Company's inception. Mr. Li had previously served as Deputy Director of Sales, Director of sales, and Deputy General Manager of Sureland, and he is a brother of Mr. Gangjin Li, the Chairman of the Board. Mr. Li has over 15 years experience in project sales and sales management, and prior to founding Sureland in 1995, was an entrepreneur selling electrical systems to industrial customers in China. He is currently completing a business diploma in an advanced program for young Chinese entrepreneurs at Tsinghua University.

Mr. Haijun Yang has been promoted to Vice President of Operations and Secretary of the Board of China Fire. In this new role, Mr. Yang will be responsible for internal operations management, including human resources, legal affairs and mergers & acquisitions. He will also retain his current role as Deputy General Manager of Sureland in charge of operations and mergers & acquisitions. Mr. Yang joined Sureland Industrial in 2000, and has since held various positions including Executive Assistant to the General Manager and Secretary of the Board of Sureland. Prior to joining Sureland, Mr. Yang was a marketing manager in a telecommunications company and a manager of corporate planning in a winery company. Mr. Yang received his MBA from Renmin University of China in 2000 and is currently pursuing a Ph.D. in business management.

Mr. Brian Lin, Chief Executive Officer of China Fire commented, "We continue to improve the strength of our leadership team with these executive promotions, and as we continue to lead our industry in technical and product innovations, I am very pleased to announce the creation of the Chief Technology Officer position at China Fire. I congratulate Messrs. Zhang, Li, and Yang on their well-deserved promotions. I am confident they will significantly contribute to our company's greater success and help further expand our company's leadership position in the industrial fire protection market.''

About China Fire & Security Group, Inc.

China Fire & Security Group, Inc. (NASDAQ: CFSG - News), through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited ("Sureland") and Tianjin Tianxiao Fire Safety Equipment ("Tianxiao"), is a leading total solution provider of industrial fire protection systems in China. Leveraging on its proprietary technologies, China Fire is engaged primarily in the design, manufacture, sales and maintenance services of a broad product portfolio including detectors, controllers, and fire extinguishers. Via its nationwide direct sales force, China Fire has built a solid client base including major companies in iron and steel, traditional power generation, petrochemical and nuclear power industries throughout China. China Fire has a seasoned management team with strong focus on standards and technologies. Currently, China Fire has 52 issued patents covering fire detection, system control and fire extinguishing technologies. Founded in 1995, China Fire is headquartered in Beijing with about 500 employees in more than 30 sales and project offices throughout China. For more information about the Company, please go to http://www.chinafiresecurity.com .

Cautionary Statement Regarding Forward Looking Information

This presentation may contain forward-looking information about China Fire & Security Group, Inc. and its wholly owned subsidiary Sureland which are intended to be covered by the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statements are statements that are not historical facts. 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, and include discussions of strategy, statements about industry trends and China Fire & Security Groups' future performance, operations and products. This and other "Risk Factors" are contained in China Fire & Security Groups' public filings with the SEC.

    For more information, please contact:
    
     China Fire & Security Group, Inc.
     Shayla Suen, Investor Relations
     Tel:   +86-10-8441-7400
     Email: ir@chinafiresecurity.com

    ICR, Inc.
     In China:
     Michael Tieu or Bill Zima
     Tel:   +86-10-6599-7960 or +86-10-6599-7969
     Email: michael.tieu@icrinc.com or william.zima@icrinc.com

     In the U.S.:
     Brian M. Prenoveau, CFA
     Tel:   +1-203-682-8200
     Email: brian.prenoveau@icrinc.com