SOURCE: China Direct Trading Corp.

May 22, 2006 07:20 ET

China Direct Reports $2.7 Million in April 2006 Generator Sales

Sales Increase of 41% Over March 2006 Sales

COOPER CITY, FL -- (MARKET WIRE) -- May 22, 2006 -- China Direct Trading Corp. (OTCBB: CHDT) today announced that its Complete Power Solutions (CPS) subsidiary booked generator sales contracts for $2.732 million in the month of April 2006. This represents contracted sales growth of 41% from last month's totals and more than half of 1st quarter 2006 sales.

Actual financial results may vary based on auditor and other adjustments to the final audited SEC-filed financial results. Contracted generator sales represent the face value of generator installation contracts signed during the reported period, final revenue recognition for quarterly reporting purposes is determined by completed generator installations and related receipt of purchase price. The company receives a forty percent deposit upon signing of each generator installation contract, forty percent upon delivery and the remainder upon completion of installation. The default rate experienced during January through April 2006 has been one percent of total contracts.

               Monthly Contracted Generator Gross Sales

               January 2006   February 2006   March 2006   April 2006
Complete
Power            $680,000        $980,000     $1,490,000   $2,000,000
Solutions
Sales

Sales
to               $250,000        $350,000       $450,000     $732,000
Retailers
                 --------      ----------     ----------   ----------

Total
Monthly
Contracted       $930,000      $1,330,000     $1,940,000   $2,732,000
Generator Gross
Sales
"We are pleased to see that demand remains high for Complete Power Solutions' generators, and as reported in our first quarter results, we have significantly expanded generator inventory and installation personnel in order to continue to be able to offer expeditious installation service in South Florida," said Bill Dato, CEO of CPS. "We continue to see increasing demand for standby power systems in our market as the media focuses on the coming hurricane season and the prediction by the National Hurricane Center of 17 named storms and 5 major hurricanes.

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. Sales results for any period are not necessarily indicative of future sales or future sales growth. No forward-looking statement is or can be guaranteed. 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. The sale of power generators can be affected by a number of factors that are beyond the control of China Direct or CPS, including seasonal sales cycles, availability of affordable inventory financing, predatory pricing by competitors and weather conditions. 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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