New Venture Named CDI Metal Recycling Co., Ltd.

DEERFIELD BEACH, Fla., March 19 /PRNewswire-FirstCall/ -- China Direct, Inc. (Amex: CDS), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, announced today it has launched a new venture to recycle aluminum powder.

The new venture, named CDI Metal Recycling Co., Ltd. ('CDI Recycling'), will be 83.3% owned by CDI Shanghai Management Co., Ltd., a wholly owned subsidiary of China Direct and will expand China Direct's clean technology division which currently includes CDI Wanda New Energy Co., Ltd. and Yantai CDI Wanda Renewable Resources Co., Ltd. China Direct will contribute $352,000 (approximately 2.5 million RMB) in the form of working capital to construct recycling facilities with an annual recycling capacity of 1,000 metric tons of aluminum powder. China Direct anticipates the initial 1,000 metric tons of annual capacity will be operational late in the second quarter of 2008. China Direct plans to add an additional 4,000 metric tons of annual processing capacity by June 2009.

CDI Recycling will focus on recycling aluminum wires to create aluminum powder, which consists of 99.65% pure aluminum. CDI Recycling's technology uses a combination of purely mechanical crushing and an improved ball milling procedure to increase recycling rates and degree of fineness. Traditional methods to produce aluminum powder expose aluminum to heat and oxygen, which creates substantial burning loss. CDI Recycling, through the use of a purely mechanical crushing method will eliminate burning loss. Additionally, CDI Recycling will utilize a specific ball vibrator design to mill the powder completely and evenly as opposed to traditional drum designs which management believes are less efficient. CDI Recycling's methodology also insulates nitrogen from the milling area to avoid potential oxidization. Through its process, management at CDI Recycling estimates it will produce non-oxidized superfine aluminum power from pure aluminum wires at a recycling rate of 98%.

Aluminum powder, depending on its mesh size, can be used in multiple industries including electronics as a conductor or dissipater of heat and electricity, metallurgy for molds and mixtures as well as metal coatings and rust proofing. Other applications include paints and coatings, chemical and metallurgical applications, propellants, explosives, and fireworks.

Management at China Direct estimates that while the venture will have a minimal impact on financial results in 2008, upon completion of expansion in 2009, the venture will have an annual production capacity of approximately $15 million of aluminum powder assuming an average price of $3,000 per metric ton.

Dr. James Wang, Chairman and CEO of China Direct, stated 'By adding CDI Recycling, we continue to expand our Clean Technology Division, into the metal recycling business. Management is convinced that innovative recycling operations will become strong growth drivers worldwide as natural resources continue to be depleted. We intend to opportunistically expand this division throughout 2008 and believe that our clean technology segment will be a major driver of growth at China Direct in 2009 and beyond.'

About China Direct, Inc.

China Direct, Inc. (Amex: CDS) is a diversified management and advisory services organization headquartered in the U.S. Our management services division acquires a controlling interest in entities operating in China. Our ownership control enables China Direct to provide management advice, as well as financing to Chinese entities. This infrastructure creates a platform to expand their business globally while effectively and efficiently accessing needed capital. Our advisory services division provides comprehensive advisory and consulting services critical to the success of Chinese entities seeking to access the U.S. capital markets. As a direct link to China, China Direct serves as a vehicle allowing investors to directly participate in the rapid growth of the Chinese economy in a diversified and balanced manner. For more information about China Direct, please visit http://www.cdii.net.

Safe Harbor Statement

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 products, pricing and new technology; changes in consumer preferences and tastes; and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, 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.

SOURCE China Direct, Inc.

Source: PR Newswire (March 19, 2008 - 12:43 PM EDT)

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