CDS China Direct (MM)

Reiterates Net Income Guidance for 2008 DEERFIELD BEACH, Fla., Sept. 9 /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, commented today in response to numerous inquiries from its shareholders regarding the recent decline in the price of China Direct's common stock. Management reaffirms its year end net income performance guidance. Furthermore, management is presently unaware of any significant fundamental changes in its business operations. While the current global environment for commodities has become more challenging, management believes the company is well positioned in magnesium and sees the overall market price for magnesium stabilizing as any disruptions in the market for magnesium related to the Olympics subside with long term pricing and demand trends remaining favorable. In addition, our magnesium segment markets to a relatively stable customer base across a broad group of industries based on a blend of contract pricing for long term to short term delivery schedules which have predetermined pricing agreements. While any spot price sales are subject to the prevailing market, management does not anticipate any significant deviation of pricing or delivery terms from contracts in place for the remainder of 2008. Management also sees a continued favorable environment for its consulting segment and is pleased with its progress in attracting new and more substantial companies to its base of consulting clients. The recent addition of China Armco Metals, which raised over $7.5 million this August to move forward with its scrap metal recycling project as well as Sunwin International, which recently acquired a majority stake in a company that sells organic animal feed and fertilizers, valued at $6.2 million, demonstrates our ability to assist growing companies in one of the most challenging equity environments in recent memory. Senior management is currently in China as part of its routine review of current operations and to explore potential acquisition opportunities. Management believes the acquisition landscape is improving as this challenging global environment has slowed the investment pace of foreign capital into China, especially in the small to medium sized companies. This creates a very favorable environment for our company which has a strong balance sheet and the ability to capitalize on those opportunities. The China Direct model enables our company to deploy resources into growth areas at attractive valuations that we believe will enable us to grow substantially within a segment and adjust our concentration in those segments as needed. 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 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: Investor Relations, James Kautz, , or Todd Atenhan, both of EPOCH Financial Group, Inc., +1-404-806-1393; Company, Richard Galterio, Executive Vice President of China Direct, Inc., +1-877-China-57, Web site: http://www.chinadirectinc.com/

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