Software Circle Regulatory News (SFT)

16 Aug 2006 11:29

Sinosoft Technology plc16 August 2006 16 August 2006 SINOSOFT TECHNOLOGY PLC ("SINOSOFT" OR "THE COMPANY") GOLDEN TAX EXPORT TAX MANAGEMENT INFORMATION SYSTEM ("EXPORT TAX PROJECT") As disclosed at the time of the Company's admission to AIM in March 2006,Sinosoft's wholly owned subsidiary Nanjing Skytech Co., Ltd ("Nanjing Skytech")in conjunction with two partners, China National Software and Technology ServiceCorporation and Taihe Digital Science and Technology Co., Ltd was awarded atender on 8 December 2005 by the Chinese State Administration of Taxation ("theSAT") to develop, install and support the roll out of its export tax software toprovincial tax bureaus across China. The Company is pleased to announce that following a detailed scoping exercise ithas agreed the technical specifications of the project with the SAT and signedan agreement on 3 August 2006 which outlines the technical specifications,testing parameters and proposed roll out timetable. The roll out will cover taxbureaus in 36 provinces and the SAT. For each of the 36 provinces, two systems will be adopted within the provincialtax bureaus: 1. Tax Export Management Information System 2. Tax Refund Data Gathering System The SAT will also adopt two systems: 1. The SAT Export Tax Monitoring System 2. The SAT Data Exchange System The execution of the whole Export Tax Project will be divided into two phases: * The first phase will involve final testing in one large and one small province, followed by: * The roll out to the remaining 34 provinces. This process will be carried out by six teams which will enable it to be implemented in a number of provinces simultaneously. It is envisaged that that the software will be initially introduced to the larger and more economically developed provinces. The Company is currently in the process of finalising the technicalspecifications and development of the alpha stage product, with testing in thetwo test provinces following thereafter. About the Export Tax Project Tax bureaus across China currently use a system developed in 1992 and amendedseveral times over the last ten years to process export tax refunds. Under thePRC's Government's Golden Tax Project the export tax management systems havebeen reviewed and a decision was a made to adopt an integrated system. Since theawarding of the Export Tax Project in December 2005, Nanjing Skytech has workedwith the SAT to develop a product that not only carries out the export taxrefund function but is also compatible with the SAT's integrated managementsystem, invoice management system and other associated systems. The principal targets of the project are to: * Integrate a number of different systems, through the centralisation of data at the SAT and provincial tax bureaus. * Realise information free flow and data exchange among associated systems * Full coverage of current and future export tax refund systems * Achieve a smooth transition between the old and new systems. Commenting on the agreement Ms Xin, Sinosoft's CEO said: "The signing of theagreement marks a considerable milestone in the implementation of the Export TaxProject. We have now agreed the both the technical specifications, testingmechanism and roll out structure and look forward to moving the projectforward." SALES OF E-GOVERNMENT SOFTWARE TO CITY GOVERNMENT OF WUHU, ANHUI PROVINCE The Company is also pleased to announce that it has made its first sale ofe-Government software to a province other than Jiangsu. Sinosoft's subsidiaryNanjing Skytech entered into a contract with the Information Office of CentralCity Government of Wuhu, Anhui province, to supply its e-Government systemsoftware V2.0. Commenting on the agreement, Ms Xin, Sinosoft's CEO said: "This sale representsan important land mark for Sinosoft as is the Group's first sale of e-Governmentsoftware to a provincial government outside of our home province of Jiangsu. Webelieve that this will be the first of many new customers in both Anhui andother provinces." -ends- For further information, please contact: HansonWesthouse Tavistock CommunicationsTim Metcalfe/Richard Baty Paul Dulieu / Matt Ridsdale020 7601 6100 020 7920 3150 This information is provided by RNS The company news service from the London Stock Exchange