SOURCE: China Infrastructure Investment Corporation

November 17, 2008 08:00 ET

China Infrastructure Reports First Quarter Results

Toll Revenues Grew Despite Mining Disasters in Henan and Toll Free Regulations Instituted by the Government for Agricultural and Food Supply Vehicles

BEIJING--(Marketwire - November 17, 2008) - China Infrastructure Investment Corporation (NASDAQ: CIIC), an emerging infrastructure development company operating in the People's Republic of China, announced today a 6.3% revenue increase in its first fiscal quarter ended September 30, 2008 compared with the same period last year. Revenues in the quarter, derived entirely from tolls on the Pinglin Expressway in Henan operated by the Company, reached $15,438,407 compared with $14,520,907 in the first quarter of fiscal 2007. According to the Company, revenues in the period were lower than anticipated and, coupled with increased G&A and interest expenses, net income in the period declined approximately 21.3% compared with last year's first quarter.

The Company said that two key factors reduced anticipated toll revenues in the period. In particular, there was a decrease in higher toll rate coal truck traffic due to world economic factors and, more specifically, a suspension in the operations of Henan coal mines in the period due to a series of accidents at the mines. Additionally, the government introduced a toll free policy in 2008 for all vehicles carrying agricultural and marine products aimed at reducing food costs, which further reduced Pinglin toll revenues.

At the same time, in anticipation of continuing growth, the Company had higher operating and interest expenses in the period which reduced pre-tax and pre-interest gross profits from 84.2% of prior year first quarter revenues to 78.5% of revenues in the first quarter of fiscal 2008. Consequently, net income in the 2008 first quarter decreased approximately $0.9 million, to $3,316,185 compared with $4,215,161 in last year's first quarter. Weighted average shares outstanding in the first quarter ended September 30, 2008 increased substantially to 80,000,000 shares from 54,400,000 in the same period last year. This is reflected in the decrease in EPS to $0.04 per share in the September '08 first quarter compared with $0.08 in the first quarter ended September 30, 2007.

Outlook

Commenting on these results, Mr. Li Xipeng, Chairman and CEO of the Company, stated, "The 66 mile long Pinglin Expressway is strategically located in the most populated province in China, and we fully expect to see further increases in traffic on it, as awareness of this relatively new route continues to grow."

"Moreover," he added, "there is a continuing strong need for further infrastructure development in Henan and throughout China, and we will pursue appropriate available opportunities while being fully self-sustained by the cash flow from our current operations. The historic opportunity for rapid development of China's infrastructure remains and we envision many new profitable projects in the future."

Balance Sheet and Capex

During the quarter ended September 30, 2008, net cash provided by operating activities was approximately $3.1 million, a decrease from approximately $6.1 million in the comparative quarter last year, mainly due to the decrease in net income and accounts receivables in the period. However, cash and cash equivalents at period end in 2008 increased to $7,735,398 compared with $5,624,936 in the same period last year.

The Company had capital expenditures of approximately $1.0 million in the first quarter of fiscal 2008, mainly for toll road infrastructure, toll stations and ancillary facilities and other equipment related to its operation of the Pinglin Expressway.

For additional information, please consult the attached tables.

About China Infrastructure Investment Corporation:

China Infrastructure Investment Corporation, incorporated in Nevada, USA and headquartered in Henan Province, China, focuses on investing in, constructing, operating and managing infrastructure development projects in China. The Company currently operates the Pinglin Expressway, a 106-kilometer (66 miles) dual carriageway four-lane toll road in the central province of Henan. The Expressway is an important passage from the northwest region to the southeast coastal region of China. The Company is actively pursuing additional acquisition and development opportunities in infrastructure projects, including expressways, electricity, water supply and bio fuel facilities. For more information, please visit www.ciicusa.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of construction, financing costs and other factors as those discussed in the Company's reports filed with the Securities and Exchange Commission from time to time. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

No securities regulatory authority has either approved or disapproved the contents of this news release.

                CHINA INFRASTRUCTURE INVESTMENT CORPORATION
      (FORMERLY LEARNING QUEST TECHNOLOGIES, INC.) AND SUBSIDIARIES
   CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                              (UNAUDITED)


                                                     THREE MONTHS
                                                         ENDED
                                                      SEPTEMBER 30,
                                              ----------------------------
                                                  2008            2007
                                              ------------    ------------

REVENUES                                      $ 15,438,407    $ 14,520,907

OPERATING COSTS                                  1,209,211         486,882

DEPRECIATION AND AMORTIZATION                    2,104,615       1,801,574
                                              ------------    ------------

GROSS PROFIT                                    12,124,581      12,232,451

General and administrative expenses              1,345,248         929,997
                                              ------------    ------------

INCOME FROM OPERATIONS                          10,779,333      11,302,454

OTHER INCOME (EXPENSES)

Interest expense, net                           (6,510,594)     (5,877,275)

Other income, net                                  256,212         195,035
                                              ------------    ------------

INCOME FROM OPERATIONS BEFORE INCOME TAXES       4,524,951       5,620,214

INCOME TAX EXPENSE                              (1,208,766)     (1,405,053)
                                              ------------    ------------

NET INCOME                                       3,316,185       4,215,161
                                              ------------    ------------

OTHER COMPREHENSIVE INCOME

Foreign currency translation gain                  428,851       2,081,780
                                              ------------    ------------

OTHER COMPREHENSIVE INCOME                         428,851       2,081,780
                                              ------------    ------------

COMPREHENSIVE INCOME                          $  3,745,036    $  6,296,941
                                              ============    ============

WEIGHTED AVERAGE SHARES OUTSTANDING,
 BASIC AND DILUTED                              80,000,000      54,400,000
                                              ============    ============

NET INCOME PER COMMON SHARE,
 BASIC AND DILUTED                            $       0.04    $       0.08
                                              ============    ============

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