EXHIBIT 99.1

China Intelligence Announces Resignation of Director

JINAN, China, August 30, 2012 - China Intelligence Information Systems, Inc. ("China Intelligence", "The Company") (PINK: IICN), who offers virtualization technology application and cloud computing related consulting service, products, solutions and implementation service in the People's Republic of China, announced today that Mr. Qinghua Wang, a member of the Board of Directors of the company, resigned as a member of the board of directors of China Intelligence and as the general manager of the subsidiary company, Jinan Yinquan Technology Co,.Ltd, due to the personal reasons. The Board accepted Mr. Wang’s resignation, effective August 27, 2012. The Company is seeking a suitable candidate to serve as the new general manager of the subsidiary. There was no disagreement between Mr. Wang and the Company prior to his resignation on any matter related to the Company’s operations, policies or practices.

“Mr. Wang proved himself to be a valuable member of the Board of Directors and management of the Company. We thank him for his services and wish him good fortune in his future endeavors,” said Kunwu Li, Chairman and Chief Executive officer of the Company.

About China Intelligence Information Systems, Inc.

As the leader in China's virtualization and cloud computing market, China Intelligence has developed a suite of offerings, including server consolidation, desktop virtualization and disaster tolerance and backup systems, to high-end clients in China, assisting them in flexible usage of their IT resources. China Intelligence also helps its clients establish a cloud computing platform with lower IT costs and increased computing speed up to a thousand times current capability. Furthermore, we help clients establish their datacenter management and disaster tolerance backup center on the Cloud.

China Intelligence's team of highly qualified management and experienced technical experts provides its clients with a full-range of services including consulting, products and implementation relating to datacenter integration, disaster tolerance and backup, cloud computing as well as desktop virtualization.

China Intelligence also enjoys long-term and close working relationships with partners including VMware Inc., Vizioncore and CA Technologies. As a reflection of our knowledge and expertise, we have gained some of the industry's highest partner recognition. The depth and breadth of these recognitions reflects our commitment to maximizing customers' returns on IT investment while minimizing the risk of implementing new technologies. China Intelligence has been named Infrastructure Virtualization Competency Partner of the Year at the VMware Partner Exchange 2011.

Built with perfection, usability and enterprise level features in mind, today our solutions are used by many Fortune 500 companies including State Grid Corporation of China, China Unicom, China Southern Power Grid, China Life Insurance Group, China Huaneng Group and China Power Investment Corporation

Our government expertise consists of a highly-skilled team, specializing purely in the service and supply of government departments. The team is well-versed in the challenges faced by government organizations of any size. China Intelligence is able to help these clients on virtualization of datacenters, disaster tolerance and backup as well as cloud computing. Some of our governmental clients include, State Administration of Tax and its subordinates, General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and its subordinates, Ministry of Industry and Information Technology of the People's Republic of China and its subordinates, National Bureau of Statistic of China and its subordinates, Ministry of Education of the People's Republic of China and its subordinates, and Ministry of Water Resources of the People's Republic of China and its subordinates.

Safe Harbor Statement

Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by the use of forward-looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

Contact:
Lei Zhang
Tel: +86-531-5558-5777

Email: zhanglei@yinquan.cn