SOURCE: China Direct Trading Corp.

July 06, 2006 07:25 ET

China Direct Projected Second Quarter 2006 Revenues Up 2300%

Q2 2006 Power Generator Contracted Sales Hit $6.5 Million up 54% Vs. Q1 2006

COOPER CITY, FL -- (MARKET WIRE) -- July 6, 2006 -- China Direct Trading Corp. (OTCBB: CHDT) today announced preliminary top line revenue growth for the second quarter of 2006 ended June 30, 2006. Revenues for Q2 2006 were $6.8 million, an increase of over 2300 percent as compared to revenue of $292,182 reported for Q2 2005. On a sequential basis, Q2 2006 projected sales represent an increase of 54 percent over Q1 2006 sales of $4,400,102.

Q2 2006 results include $6,500,000 from the sale of power generators by Complete Power Solutions, LLC, a China Direct majority-owned subsidiary, (CPS). China Direct consolidates 100% of CPS' financial results into China Direct's SEC reported financial results. Actual financial results for Q2 2006 may vary based on auditor and other adjustments to the final, SEC-reported financial results.

"We are very pleased with the continual growth and success of Complete Power Solutions and will continue to invest in the systems and services that will foster ongoing success for CPS and China Direct," said Howard Ullman, CEO/President of China Direct. "We are expanding our operational geographic reach and offering significant value-added services that will continue to build on our success to date in standby power provision. We also will be commencing sales of our roofing tiles very soon which will further accelerate revenue growth throughout FY 2006. We look forward to reporting final results for the second quarter on or before August 15, 2006 and we will also conduct an investor conference call on the release date to detail results and plans going forward."

About China Direct: China Direct (www.chdt.us) is a holding company engaged through its operating subsidiaries in the following business lines: 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 turnkey solutions for standby commercial and residential power generation. 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. None of the web site URLs listed in this press release is incorporated into or is part of this press release.

FORWARD-LOOKING STATEMENTS: This press release, including any financial information and projections, contain "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' managements' current expectations and assumptions, and involve risks and uncertainties. Such expectations and assumptions may prove to be faulty or incorrect and actual results may differ significantly, materially from those anticipated results set forth in such statements. Current revenues and revenue growth is not a reliable indicator of future financial results and should not be relied upon by investors as such an indicator. China Direct and CPS undertake 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 (and as such is deemed a "highly risky investment") should be evaluated together with the many uncertainties that affect our business, particularly those stated in the cautionary statements and risk factors in current and future China Direct SEC Filings, which statements we hereby incorporate by reference herein.

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