China Infrastructure Investment Corporation Reports Nine Month and Third Quarter Results: Financial News

China Infrastructure Investment Corporation Reports Nine Month and Third Quarter Results
Friday May 16, 8:30 am ET

BEIJING--(MARKET WIRE)--May 16, 2008 -- China Infrastructure Investment Corporation (OTC BB:CIIV.OB - News), an emerging infrastructure development and service company operating in The People's Republic of China, reported today that its fiscal third quarter revenues -- generated by its toll road operations on the Pingling Expressway in Henan Province -- rose 18% to $11,630,749, compared with $9,857,195 in the year earlier three month period ending March 31, 2007. It added that revenues in the period would have been substantially higher if not for the impact of the unusually heavy snowstorms that affected much of China in January and the seasonal impact of lower commercial traffic during the 15 day Spring Festival vacation period in February.

The Company also reported that the lower than expected revenues in the quarter, in combination with higher interest costs, translated to an approximately 12% decline in its third quarter net income, from $2,078,859 in the third quarter of the prior fiscal year to $1,823,863 in the three month period ended March 31, 2008.

Through the first nine months of the fiscal year, however, reflecting increased toll rates and what the Company sees as a continuing overall trend of increased daily traffic volume on the Pingling Expressway -- which grew approximately 35% in the period compared to the first nine months of the prior fiscal year -- revenues climbed more than 50% to $40,509,496 compared with $26,876,316 in the same period a year earlier. The Company said that the factors driving the increase in revenues in the first nine months, coupled with improved margins and operating efficiencies, also led to a substantial increase in net income in the period, from $4,481,805 in the first nine months of the prior fiscal year, to $8,370,026 in the period ending March 31, 2008, an increase of approximately 87%.

The Company stated further that in the first nine months of the current fiscal year, while operating costs grew substantially -- mainly for anticipated road maintenance and repair occasioned by the increased traffic volume on the expressway -- nearly $1 million of the approximately $4 million in these costs was for the hiring of new employees to support the future growth of the business. Further, despite the increase in operating costs, higher sales and cost management produced an increase in gross profits in the period of approximately 44% compared to the first nine months in the prior year.

With respect to the increase in interest costs in the first nine months of the year, which rose to approximately $17.7 million in the period ended March 31, 2008 from approximately $14.2 million in the year earlier nine month period, the Company said this was primarily a consequence of an increase in the Company's loan rate from 5.98% to 7.15% on average.

Commenting on these results, Mr. Li Xipeng, Chairman and CEO of the Company, stated, "We estimate the combined impact of the unusual bad weather and the Spring Holiday on our revenues in the third quarter was approximately $2.4 million. Going forward, we expect to see a return to the trending up in traffic volume that we have experienced since the opening of the Expressway in December 2005, and the completion of the second phase of construction in May of 2006, as drivers become familiar with this convenient passageway, which is a significant part of the national trunk linking the north-western regions to the south-eastern regions of the PRC."

He continued, "While working to optimize our Pingling Expressway operations, which currently are the Company's primary revenue generator, we also remain focused on additional investment opportunities in promising infrastructure projects in Henan Province and elsewhere in China, where we see significant potential for increased revenue and profit."

About China Infrastructure Investment Corporation:

China Infrastructure Investment Corporation, incorporated in Nevada and headquartered in Henan Province, China, focuses on investing in, constructing, operating and managing development projects providing high quality infrastructure services and promoting regional economic growth in the People's Republic of China (PRC). The Company currently operates the Pingling Expressway, a 106-kilometer dual carriageway four-lane toll road in the Henan Province in central China, which is a component of the Luoyang-Nanjing expressway, an important passage from the northwest Mainland areas to the southeast coastal China. The Company is also actively pursuing additional acquisition and expansion opportunities to participate in infrastructure development projects, including expressways, electricity, water supply and sewage treatment 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 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 STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

                     Three Months Ended March     Nine Months Ended March
                                31,                         31,
                    --------------------------  --------------------------
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------

REVENUES            $ 11,630,749  $  9,857,195  $ 40,509,496  $ 26,876,316

OPERATING COSTS          830,977       462,054     4,012,823     1,032,546

DEPRECIATION AND
 AMORTIZATION          1,758,334     1,444,361     5,121,538     4,080,983
                    ------------  ------------  ------------  ------------

GROSS PROFIT           9,041,438     7,950,780    31,375,135    21,762,787

General and
 administrative
 expenses                825,983       628,402     3,211,241     1,561,433
                    ------------  ------------  ------------  ------------

INCOME FROM
 OPERATIONS            8,215,455     7,322,378    28,163,894    20,201,354

OTHER INCOME
 (EXPENSES)

  Interest expense,
   net                (6,061,743)   (4,777,610)  (17,677,618)  (14,191,792)

  Other income
   (expense), net        290,200       227,044       679,216       (33,822)
                    ------------  ------------  ------------  ------------

INCOME FROM
 OPERATIONS BEFORE
 INCOME TAXES          2,443,912     2,771,812    11,165,492     5,975,740

INCOME TAX EXPENSE      (620,049)     (692,953)   (2,795,466)   (1,493,935)
                    ------------  ------------  ------------  ------------

NET INCOME             1,823,863     2,078,859     8,370,026     4,481,805
                    ------------  ------------  ------------  ------------

OTHER COMPREHENSIVE
 INCOME

Foreign currency
 translation gain      6,421,839     7,395,291    12,799,998     8,199,050

Income taxes
 related to other
 comprehensive
 income               (1,605,460)   (1,848,823)   (3,200,000)   (2,049,763)
                    ------------  ------------  ------------  ------------

OTHER COMPREHENSIVE
 INCOME, NET           4,816,379     5,546,468     9,599,998     6,149,287
                    ------------  ------------  ------------  ------------

COMPREHENSIVE
 INCOME             $  6,640,242  $  7,625,327  $ 17,970,024  $ 10,631,092
                    ============  ============  ============  ============

WEIGHTED AVERAGE
 SHARES
 OUTSTANDING, BASIC
 AND DILUTED          69,560,440    55,000,000    59,818,182    55,000,000

NET INCOME PER
 COMMON SHARE,
 BASIC AND DILUTED  $       0.03  $       0.04  $       0.14  $       0.08
                    ============  ============  ============  ============

See accompanying notes to the condensed consolidated financial statements.