China Direct, Inc. Creates Board of Advisors, Names Lilia Clemente as Advisory Board Chairman

DEERFIELD BEACH, Fla., June 26  /PRNewswire-FirstCall/ -- China Direct, Inc. (NASDAQ:CDS), a U.S. company that owns controlling stakes in a diversified portfolio of Chinese entities and assists Chinese businesses in accessing the U.S. capital markets, has formed an advisory board to assist management and the board of directors in the planning of the company's future growth. The advisory board will meet periodically with both management and the board to lend its business expertise in a wide range of areas including but not limited to future business acquisitions, strategic partnerships, dealings with the investment community and future financings.

As an initial step to the formation of the advisory board, the company has named Lilia Clemente to serve as its chairman.  In addition to assisting the company with identifying candidates for this board of advisors, Ms. Clemente will oversee all of the functions of this board on a going forward basis. Since 1976 Mrs. Clemente has served as the founder, chairman and chief executive officer of Clemente Capital, Inc., based in New York and Beijing, China.  Ms. Clemente began her career in 1967 as an investment analyst and portfolio manager with CNA Financial Corporation in Chicago, responsible for the metals, mining and steel industries.  From 1969 to 1976, she served as director of investment research and assistant treasurer at the Ford Foundation.  In 1976, Ms. Clemente left the Ford Foundation to create Clemente Capital Inc. which initially focused on economic and business consulting with emphasis on Pacific Basin.  From 1983 to 1986, Ms. Clemente provided global investment management services as first vice president and chief investment officer at Mitchell Hutchins Asset Management, a wholly-owned subsidiary of Paine Webber Inc.  Ms. Clemente led the firm's successful launch into global investing in fund management.  In 1992, Ms. Clemente, through Clemente Capital, launched Cathay Clemente Holdings Ltd., a private equity fund listed on the Hong Kong Stock Exchange which initially had over $75 million under management and had the Stock Exchange Executive Council (SEEC) of China as its Investment Advisor.  This fund invested in Chinese companies and was responsible for the New York Stock Exchange listing of China Yuchai Holdings, a leading diesel engine manufacturer in China in 1994.  Ms. Clemente also worked with China Investment Consulting Corporation, a subsidiary of China Construction Bank, on project advisory services from 1993 to 2001.  Ms. Clemente currently serves as non executive chairman of China Energy Partners, and as chairman of the advisory board of China Vision SME, under the China Council for the Promotion of International Trade.  Ms. Clemente earned a Bachelor of Science degree from the University of the Philippines as well as a Master of Arts in Economics and an A.B.D. from the University of Chicago.

Commenting on her appointment as advisory Chairman, Lilia Clemente stated, "I am honored to take on this important role in assisting China Direct with its very bright future.  I believe that China Direct's business model offers small to medium sized entities in China with a unique opportunity to grow and thrive as one within a larger organization. I look forward to lending my experience to management and the board during this exciting time in the company's history."

Dr. James Wang, Chairman and CEO of China Direct, stated, "As our company continues its growth, we recognize the important role that experience and proven ability in the China market will play in driving success.  We believe the ability to tap into the wealth of experience and relationships both in the U.S. and in China that Lilia possesses will help to accelerate the expansion of China Direct in the coming years.  We anticipate adding additional members to our advisory board in the near future as we surround ourselves with added knowledge and experience to build our company for the future."

About China Direct, Inc.

China Direct, Inc. (NASDAQ:CDS) is a diversified management and advisory services organization headquartered in the U.S. Our management services division acquires a controlling interest in entities operating in China. Our ownership control enables China Direct to provide management advice, as well as financing to Chinese entities. This infrastructure creates a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. Our advisory services division provides comprehensive advisory and consulting services to Chinese entities seeking to access the U.S. capital markets. As a direct link to China, China Direct serves as a vehicle allowing investors to directly participate in the rapid growth of the Chinese economy in a diversified and balanced manner. For more information about China Direct, please visit http://www.chinadirectinc.com/ .

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Direct, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations about our future success, the success of our advisory board, and our ability to identify and close acquisitions of operating companies in China in a cost effective manner that enhance our financial condition.  We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2007 and our reports on Form 10-Q. 

DATASOURCE: China Direct, Inc.



CONTACT:  Investors: James Kautz, , or Todd

Atenhan, both of EPOCH Financial Group, Inc., [phone]; or Richard

Galterio, Executive Vice President, China Direct, Inc., +1-877-China-57,





Web site:  http://www.chinadirectinc.com/ 

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