CNIT to Provide Cloud-access Upgrade for 10,000 Elevator Display Terminals; Company Also Reports Use of Its Yunfa Net Service Rising ‘Dramatically’

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SHENZHEN, China, July 28, 2016 — China Information Technology, Inc. (Nasdaq:CNIT), a leading provider of internet-based platforms and digital advertising services in China, today said it has signed a contract with a leading advertising agency in Fujian Province to upgrade 10,000 of the agency’s digital elevator display terminals to cloud-based Internet-of-Things (IoT) units.

Upon upgrade, the terminals — owned by Haojing (Xiamen) Culture Media Co., Ltd. – will be able to connect, via a proprietary CNIT adaptor ,to the company’s Yunfa Net content delivery network (www.pubds.com) and display reduced-cost ads that can be created on a customer’s PC or mobile app and targeted to diverse audience groups.

The upgraded terminals will also allow viewers to request and receive information about advertisers’ products and services, a feature believed to significantly improve the sales utility of the terminals and produce incremental revenue opportunities for the agency.

As per the contract, CNIT will receive moderate sales revenue on the 10,000 adaptors, but is expected to receive significant additional revenue as a result of increased use of Yunfa Net, for which customers pay monthly service fees for each terminal.

“This contract demonstrates the value of our cloud-based IoT business model, which provides CNIT with multiple streams of high-margin revenue,” said chairman and CEO Mr. Jianghuai Lin.

Mr. Lin added that, as a result of a network upgrade completed in April, Yunfa Net now offers a new feature known as terminal status real-time feedback – the ability of a customer to instantly receive, on a PC or mobile app, data sent from a digital ad terminal concerning which ads it is displaying and what information requests or product purchases viewers have made in response to an ad.

This feature, he said, helps customers to precisely measure the effectiveness of an ad upon a targeted audience, thereby helping these customers to make real-time adjustments in their ad content or strategy that would be difficult or impossible to make using other ad delivery systems.

Since this feature has been offered, said the CEO, both the number of subscribers to Yunfa Net and the digital ad terminals connected to the network has risen “dramatically.”

“We are seeing that, as we continue to package our upgraded Yunfa Net network together with our cloud-based elevator ad terminals across wider large markets in China, we are experiencing much improved revenue from both offerings,” said Mr. Lin.

“The result is a significantly accelerated stream of total revenue, which will create steadily improving margins for CNIT going forward.”

About China Information Technology, Inc.

China Information Technology, Inc. (NASDAQ: CNIT) is a leading Internet service company that provides integrated cloud-based solutions enabling innovation and smart living in the fields of new media, city safety management, education, etc.

Through continuous innovation, CNIT is aiming to leverage its proprietary Cloud-Application-Terminal technology to level the competitive landscape in the new media industry and deliver value for its shareholders, employees, customers, and the community. To learn more, please visit http://en.chinacnit.com.

Safe Harbor Statement

This press release may contain certain “forward-looking statements” relating to the business of China Information Technology, Inc., and its subsidiaries and other consolidated entities. All statements, other than statements of historical fact included herein, are “forward-looking statements” in nature within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements, often identified by the use of forward-looking terminologies such as “believes”, “expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company and its subsidiaries and other consolidated entities or persons acting on their behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For further information, please contact:

China Information Technology, Inc.

Iris Yan

Tel: +86-755-8370-4767

Email: IR@chinacnit.com

http://www.chinacnit.com

or

Asia IR-PR

Jimmy Caplan

Tel: +512-329-9505

Email: jimmy@asia-irpr.com

or

Media Relations: Asia IR-PR

Rick Eisenberg

Tel: +212-496-6828

Email: rick@asia-irpr.com

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