COOPER CITY, Fla., Sept. 30, 2005 (PRIMEZONE) -- China Direct Trading Corporation (OTCBB:CHDT) (China Direct), a U.S.-Chinese trading company, today announced that it entered into an exclusive marketing agreement for selling LPG generators in the U.S. with Xiangtan Electric Import & Export Co., ltd.(XEI) in Hunan province, one of the top four engine makers in China. XEI was founded in 1936 and played a leading role in the growth of the electrical industry in China. They have superior quality, large capital reserves and invest heavily in RD. Their products can be found at www.xemw.com/xemc/cn
China Direct has exclusive marketing rights for XEI 20KW through 50KW LPG-fueled electrical generators in the United States for one year. China Direct must sell US$3 million a year of the generators to maintain its exclusivity for XEI LPG-generators in the United States market. The agreement runs from October 1, 2005 until September 30, 2006. XEI will be a primary source of generators for CHDT and its distributors. XEI is seeking UL approval of its generators, and China Direct is assisting in this process.
China Direct recently signed a five-year exclusive distribution agreement for generators on September 22, 2005 with Complete Power Solutions, LLC (CPS) of Pompano Beach, Florida. CPS has placed their first order for 100 generators and has committed to purchase a minimum of 500 UL-approved generators at a value of $3,500,000 to $4,000,000 for the next 12 months to retain its exclusive territory of the Southeast and New York and New Jersey. CHDT anticipates that these numbers will grow as CPS continues to expand into other states, and the company now has two premier generator suppliers to keep up with the increasing demand for this product over the next decade.
Howard Ullman, CEO/President of China Direct, said, "We want to make sure that we have enough production capacity to keep up with our distribution network, so we are please that XEI has the confidence to give us exclusivity for these products. It is important we can keep up with demand and also secure the best suppliers exclusively for our customers."
CHDT is a global trading holding company with subsidiaries involved in trade in various industries in China. China Pathfinder Fund, LLC (CPF) is one wholly owned subsidiary engaged in trade of items other than souvenirs and novelties. CPF will continue to set up a nationwide network of generator installers looking for lower pricing and quicker deliveries. All inquiries should be directed to Larry Osborne at 919- 341-5800 or email losborne21@aol.com.
FORWARD-LOOKING STATEMENTS: Some statements contained in this release may be forward-looking within the meaning of the safe harbor clause of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements as to diversification China Direct's products and business development activities. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that may cause the company's actual results to differ materially from such forward-looking statements. These risks and uncertainties include, but are not limited to, our ability to generate revenues, fund business development activities, diversify our product and business lines, our reliance on good trade relations between the U.S. and China and the ability of Chinese industry to meet our client demands, our status as a small business with limited assets and cash reserves, possible impact of weather or conflict on our business, and other factors as described in the China Direct's literature and current and future filings with the Securities and Exchange Commission.