SOURCE: Puda Coal, Inc.

August 26, 2005 16:11 ET

Puda Coal, Inc. Launches Aggressive Campaign to Promote Stock in the United States

The Company Engages Keating After Market Support, LLC to Reach Investor and Financial Communities

TAIYUAN CITY, CHINA -- (MARKET WIRE) -- August 26, 2005 -- Puda Coal, Inc. (OTC BB: PDAC) announced today that it has engaged Keating After Market Support, LLC ("Keating AMS") to kick off an aggressive stock promotion campaign in the United States and Canada, beginning September 2005. A subsidiary of Greenwood Village, Colorado-based Keating Investments, LLC, Keating AMS will provide a strategic and detailed plan to create mass-market brand awareness for Puda Coal, Inc. (hereafter "Puda") and establish it as an actively traded and widely held stock.

Puda also is in the process of exploring its options for an exchange upgrade. The Company currently trades on the Over-the-Counter Bulletin Board.

The Company, through its affiliates and controlled entities in China, is in the business of coal crushing, preparation and cleaning.

"We are positioning the Company as a major supplier of clean coal to China and expect to triple our production capacity and net revenue during the next three years," said Puda Chairman and Chief Executive Officer Zhao Ming. "Keating AMS fits into our growth strategy by helping us to create visibility and awareness for Puda's stock."

In a move to strengthen its management team, Puda also announced it has retained Wentao Yang, a partner in Eastpride Capital Ltd., as its in-house Investor Relations consultant. A former equity research analyst in the oil and gas industry, Mr. Yang holds a master's degree in business administration from the University of Calgary, Canada, and a bachelor's degree in geophysics from the University of Petroleum, China.

Puda Takes Its Message on the Road

Beginning in September, Puda representatives will visit the United States and Canada in an aggressive campaign to create awareness of the Company's stock in the investor and financial communities. Company management will attend two major small-cap conferences, including ValueRich Small-Cap Conference, September 14 to 15, and Friedland China Public Company Conference, September 28, both in New York.

Following the ValueRich conference, Puda representatives will embark on a two-week road show to introduce and market the Company's stock to individual and institutional investors throughout North America.

Other Strategic Initiatives

Beginning with the third quarter 2005 financial results, Puda management will conduct earnings conference calls at the end of each quarter. They also will keep investors and the financial community informed throughout the year by preparing and distributing news releases during the intervals between conference calls. In addition, they will create a user-friendly web site that provides detailed analytical financial data. And finally, the Company has engaged JM Dutton to provide an initial independent research report, as well as quarterly updates.

About Puda Coal, Inc.

Puda Coal, Inc., through its affiliates and controlled entities, specializes in coal preparation by applying a water jig washing technology. The Company currently produces 500,000 tons of cleaned coal annually, and management believes it is one of the largest clean coal processing companies in the Shanxi province of China.

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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