ZST Digital Networks, Inc. Files Patent Application for Its Assisted GPS Technology

ZST Digital Networks, Inc. Files Patent Application for Its Assisted GPS Technology

ZHENGZHOU, China, June 20, 2011 /PRNewswire-Asia-FirstCall/ -- ZST Digital Networks, Inc. (NASDAQ: ZSTN) ("ZST" or the "Company"), a major developer, manufacturer and supplier of digital and optical network equipment to cable system operators and provider of GPS tracking devices and support services for transport-related enterprises in China, today announced that it has recently filed a patent application with the Chinese State Intellectual Property Office (SIPO) to ensure intellectual property protection for its Assisted GPS technology.

The Company's commercial GPS fleet management tracking and positioning devices are an internet-based system with numerous features, including but not limited to real time GPS tracking and monitoring, WEBGIS platform with live updated maps, alternative positioning systems and other value-added functions such as speed limiting and vehicle exhaust emission testing. These features are well applied to government efforts to promote higher environmental standards and energy conservation.

Assisted GPS, or A-GPS, is a technology used to improve the performance of traditional standalone GPS tracking systems which rely solely on radio signals from satellites and can be impacted by poor signal conditions in certain environments, for example in dense urban areas.

A-GPS systems overcome this issue by utilizing network resources, such as data available from a mobile network. Without requiring any additional hardware, ZST Digital's A-GPS system can make use of the GSM modules and location based service (LBS) capabilities of customers' existing mobile phone equipment, in conjunction with additional software, to introduce LBS capabilities to the GPS system, forming a dual-positioning mode. As such, when customers encounter satellite signal blockages or electromagnetic interference, the A-GPS system will enable the mobile phone LBS function to act as an assisted tracking tool, providing unimpeded tracking and navigation services.

Mr. Zhong Bo, Chairman and Chief Executive Officer of ZST, commented, "By seeking to patent our value-added Assisted GPS technology, we are securing the continued viability of our proprietary commercial GPS fleet management tracking system. A-GPS functionality allows our customers to take full advantage of our commercial GPS tracking systems regardless of environmental conditions, resulting in improved service and functionality. Our GPS commercial fleet management tracking segment has quickly become a major contributor to our overall business, with clear growth opportunities ahead. We believe that seeking this patent will help us to continue our expansion and strengthen our competitive position in the commercial GPS market in Henan Province, in addition to reinforcing a barrier to entry and further validating ZST's technological capabilities."

About ZST Digital Networks, Inc.

ZST Digital Networks, Inc. (Nasdaq: ZSTN) is a China-based company, principally engaged in (1) supplying digital and optical network equipment and providing installation services to cable system operators in China and (2) providing GPS location and tracking services to local logistics and transportation companies in China. The Company has developed a line of IPTV devices that are used to provide bundled cable television, Internet and telephone services to residential and commercial customers. The Company has assisted in the installation and construction of over 400 local cable networks in more than 90 municipal districts, counties, townships, and enterprises. The Company has also launched a commercial line of vehicle tracking devices utilizing our GPS tracking technologies and support services for transport-related enterprises to track, monitor and optimize their businesses. For more information about ZST Digital Networks, Inc., please visit http://www.zstdigital.com/english.

"Safe Harbor" Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including, but not limited to, our ability to maintain and increase revenues and sales of our products; our ability to develop and market new products; our strategic investments and acquisitions; compliance and changes in the laws of the People's Republic of China (the "PRC") that affect our operations; our ability to obtain all necessary government certifications and/or licenses to conduct our business; and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time. 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 the factors discussed above and 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 the Company or to persons acting on its 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.

Contacts:

Company Contact: Investor Relations (HK):
ZST Digital Networks Inc. Mahmoud Siddig
Email: ir@zstdigital.com Taylor Rafferty
Tel: +852-3196-3712
Email: zstdigital@taylor-rafferty.com
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Investor Relations (US):
Bryan Degnan
Taylor Rafferty
Tel: +1 (212) 889-4350
Email: zstdigital@taylor-
rafferty.com
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SOURCE ZST Digital Networks, Inc.

ZST Digital Networks, Inc.

Web Site: http://www.zstdigital.com/english

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