CDS China Direct (MM)

New Corporate Name to More Accurately Reflect Company's New Focus on its China Operating Subsidiaries DEERFIELD BEACH, Fla., Jan. 14 /PRNewswire-FirstCall/ -- China Direct, Inc. (NASDAQ:CDS), a U.S. company that manages a portfolio of Chinese entities, announced today it has received approval from NASDAQ to change its trading symbol from CDS to CDII effective on Monday, January 26, 2009. In addition, the Company's board of directors has approved a change of the Company's name to China Direct Industries, Inc., subject to approval of its shareholders at the Company's annual shareholder meeting which is expected to take place in May 2009. The change in the Company's name to China Direct Industries, Inc. will more accurately reflect its new direction in focusing on operating its magnesium and basic industry subsidiaries in China. Starting in the fourth quarter of 2006, the Company began its evolution from exclusively providing advisory services to small and medium sized companies in China to acquiring majority control of growing Chinese businesses, mainly in the areas of magnesium production and distribution and basic industries. Over the course of 2007 and 2008, the Company has devoted a substantial majority of its resources in both capital and personnel toward building these operations. In 2008 the Company derived the vast majority of its revenues from its China operating subsidiaries and management intends to continue to focus its efforts in this area. As a result, the board of directors has approved the change of the Company's corporate name to China Direct Industries, Inc. and will seek shareholder approval to amend the Company's articles of incorporation to reflect this change. Management intends to call for a shareholder vote on the proposed amendment at its next annual shareholders meeting expected to take place in May, 2009. Commenting on the Company's new focus, Dr. James Wang Chairman and CEO of China Direct stated "It has become apparent to management and the board of directors that China Direct's future success hinges on our ability to grow our operating subsidiaries in China as we seek to become the leading producer and distributor of magnesium in the world and build our presence in other basic industry groups. It is increasingly important in this challenging world economy to focus on those areas which we believe provide the best potential for sustainable long term growth and profitability. We believe that our new name is more reflective of our current operations and conveys a clear message to the investment community about our new focus." About China Direct, Inc. d/b/a China Direct Industries, Inc. China Direct, Inc., d/b/a China Direct Industries, Inc. (NASDAQ:CDS), is a U.S. owned, rapidly growing holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials in China. The Company also provides advisory services to Chinese based companies to assist them in competing in the global economy. Headquartered in Deerfield Beach, Florida, China Direct operates 10 subsidiaries throughout China. This infrastructure creates a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct, please visit http://www.cdii.net/. 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 the focus of our business, our ability to grow our operating subsidiaries in China and our efforts to become a leading producer and distributor of magnesium in the world and build our presence in other basic industry groups. 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 Industries, Inc. CONTACT: Richard Galterio, or Lillian Wong, , Investor Relations, China Direct Industries, Inc., +1-877-China-57 Web site: http://www.cdii.net/

Copyright