SOURCE: China Direct Trading Corp.

September 20, 2006 07:46 ET

Stewart Wallach, CEO of Capstone Industries, Inc., Joins China Direct Board of Directors

FT. LAUDERDALE, FL -- (MARKET WIRE) -- September 20, 2006 -- China Direct Trading Corp. (OTCBB: CHDT) (China Direct or CHDT) announced today the appointment of Stewart Wallach, the Chief Executive Officer of Capstone Industries, Inc. (CAP), to the board of directors of China Direct.

Mr. Wallach formed and sold Systematic Marketing, Inc., which developed and marketed products to mass markets, to Sagaz Industries, Inc., an automotive parts producer for consumers. He served as president of Sagaz Industries for 10 years before forming CAP. In 1998, Mr. Wallach co-founded Examsoft Worldwide, Inc., which has developed and successfully delivered software technology solving security challenges of laptop-based examinations for major educational institutions and state bar examiners. From 2002, he, through Systematic Development Inc., has provided executive management services to Gatekeeper Business Solutions to assist in its growth. Gatekeeper Business Solutions is a company providing leading-edge technology for effective labor management and payroll services software to small and medium-sized businesses. Mr. Wallach currently is a shareholder and director of Systematic Development Incorporated and Examsoft Worldwide, Inc., serves as a director for Gatekeeper Business Solutions and is Chief Executive Officer at Capstone Industries, Inc.

"The addition of an experienced executive and marketing professional like Stewart Wallach will assist China Direct in growing its consumer products business lines, Capstone and Souvenir Direct," said Howard Ullman, Chief Executive Officer and President of China Direct. "His experience in selling to national retailers will hopefully help us expand the markets for our non-power generator business lines and develop that business line into a strong profit center for China Direct," added Mr. Ullman.

Capstone Industries (Deerfield Beach, FL), established in 1997, is an innovator in growing book light and multi-task lighting categories, holding several product and design patents and trademarks, and is engaged in product/design development, manufacturing, and distribution nationwide. Capstone's product development, domestic distribution, marketing expertise, overseas sourcing and product diversification is expected to positively contribute revenue growth in 2007. China Direct hopes that Capstone will bolster the non-power generator revenues of CHDT business lines and help diversify China Direct revenue sources. "We want to remain consistent with our strategic plan of dealing in products that can be distributed by existing channels, do not require extensive inventory and have a relatively short sales cycle," said Howard Ullman. "Capstone complements our existing souvenir business by being mostly a direct sale to national or regional corporate customers," added Mr. Ullman.

About CHDT: CHDT is a public holding company acting, through its subsidiaries, as a distributor of commercial and residential standby power generators as a general trading company focused on, but not limited to, selling Chinese-made goods in North America, especially building materials, promotional products, and souvenir and gift items.

FORWARD-LOOKING STATEMENTS: This press release, including the financial information that follows, contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements may include statements regarding product development, product potential or financial performance. The fact that CHDT seeks or consummates investments in or acquisitions of other companies does not mean that such transactions will favorably affect China Direct's business or financial conditions -- in general or as forecasted. In fact, investments and acquisitions could have an adverse impact on China Direct. No forward-looking statement can be guaranteed, and actual results may differ materially from those projected. China Direct undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release and risks associated with any investment in China Direct, which is a "penny stock" company, should be evaluated together with the many uncertainties that affect China Direct's business, particularly those mentioned in the cautionary statements in current and future SEC Filings, which statements China Direct incorporates by reference herein.

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