SOURCE: China Direct Trading Corp.

March 20, 2006 07:30 ET

China Direct Enters Final Stage of Roof Tile Testing

COOPER CITY, FL -- (MARKET WIRE) -- March 20, 2006 -- China Direct Trading Corporation (OTC BB: CHDT) (China Direct), a U.S. trading company, today announced that its Overseas Building Supply (OBS) subsidiary has a shipment of Chinese-made clay roofing tiles arriving next week to complete the final stage of testing which involves assembling the tiles on miniature roofs to show the effectiveness of different types of tile installation processes. The company will submit results for all three of the most common installation processes: nails, mortar and foam; giving roofers a choice of method of assembly for their customers.

Upon completion of assembling the roofs, the company will then submit its results along with its already-completed physical properties tests results to Miami Dade County Code Compliance department for the purpose of receiving a Notice of Approval (NOA) which is required before deliveries of roof tiles can be made. Thus far the test results for the tile have proven to be well above the code standards for Dade County and the company looks forward to submitting its results and attaining an expeditious review and approval for their tile.

OBS Chinese-made imported tile has passed the physical properties test required to comply with Dade County code requirements. The tiles significantly surpassed basic requirements for Compression, Permeability, and Absorption. OBS anticipates final submittal in early April 2006 and to be able to ship product in June 2006. Upon regulatory approval, OBS can initially deliver up to 2,500,000 tiles per month.

"Based on our market research and conversations with South Florida tile suppliers, there is an unfulfilled demand in South Florida for quality roof tiles. We are eager to complete all required building code testing so that we may begin providing our quality Chinese tiles to roofers, building supply retailers and developers in South Florida, who are currently waiting up to a year in some instances for new tile supplies. We are confident that the market will immediately recognize and embrace the high quality of our tiles, especially the quality of the clay combined with a high gloss colored glaze that protects the tile color as well as keep it clean during rainfall," said Howard Ullman, China Direct president and CEO.

About China Direct.

China Direct (www.chinadirecttradingco.com) is a holding company engaged through its operating subsidiaries in the following business lines: Souvenir Direct Inc. (SDI), www.souvenirdirect.com, is engaged in product development, manufacturing, distribution, logistics, and product placement into mass retail of souvenir and gift items in 29 countries. Overseas Building Supply (OBS) is engaged in manufacturing, distribution, and logistics of building materials including but not limited to generators, roof tiles, interior doors, and insulation materials. CPS, www.completepower247.com is a majority-owned subsidiary engaged in a turnkey solutions for standby commercial and residential power generation. None of the web site URLs listed in this press release are incorporated into or are part of this press release.

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 China Direct's and its subsidiaries' management's current expectations and assumptions, and involve risks and uncertainties. Such expectations and assumptions may prove to be faulty or incorrect. Actual results may differ materially from those anticipated results set forth in the statements. The forward-looking statements may include statements regarding consumer demand, product orders, product development, product potential or financial performance. 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 our business, particularly those mentioned in the cautionary statements in current and future China Direct SEC Filings, which statements we incorporate by reference herein.

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