SOURCE: Puda Coal, Inc.

September 08, 2005 14:04 ET

Puda Coal, Inc. Announces Reverse Stock Split and New Trading Symbol

TAIYUAN CITY, CHINA -- (MARKET WIRE) -- September 8, 2005 -- Puda Coal, Inc. (OTC BB: PUDC) today announced a 1-for-10 reverse stock split. The shares of Puda Coal's common stock began trading today on a post-reverse split basis. Puda Coal's new trading symbol on the Over-the-Counter Bulletin Board is PUDC.

The reverse stock split automatically triggers the conversion of the outstanding 1,000,000 shares of Puda's Series A Convertible Preferred Stock into 67,850,000 shares of common stock. On a post-reverse split basis, there are now 73,750,000 shares of Puda's common stock issued and outstanding.

Puda Coal's management owns 90% of the outstanding shares of Puda Coal's common stock. There are 7,375,000 shares in the public float, representing 10% of Puda Coal's issued and outstanding common stock.

About Puda Coal, Inc.

Puda Coal, Inc., through its affiliates and controlled entities, supplies premium grade coking coal to the steel making industry for use in making coke. The Company currently produces 500,000 metric tons of cleaned coking coal annually, and management believes it is one of the largest suppliers of top grade coking coal in the Shanxi province of China. Shanxi province provides 20-25% of China's coal output and supplies nearly 50% of China's coke.

FORWARD-LOOKING STATEMENTS

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.

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