LianDi Clean Technology Inc. Launches New Software Subsidiary

BEIJING, Jan. 4, 2011 /PRNewswire-Asia-FirstCall/ -- LianDi Clean Technology Inc. (OTC Bulletin Board: LNDT), ("LianDi" or the "Company"), a provider of clean technology, downstream flow equipment, engineering services and software to China's leading petroleum and petrochemical companies, today announced it has established a new subsidiary, HongTeng WeiTong Technology, Ltd. ("HongTeng"), to focus on developing new software modules for petrochemical companies.

LianDi hired Dr. Jian Feng Yang in December 2010 to lead HongTeng. Dr. Yang has nearly 20 years of experience in the petrochemicals industry, having worked for a subsidiary of Sinopec and Beijing University of Chemical Technology. He will lead a team of 30 employees, including four employees with PhDs, to develop new software applications and technologies for production safety at petrochemical manufacturers. In addition, HongTeng will work in conjunction with System Kikou Co., Ltd. ("System Kikou") on the recently completed alliance for automated oil sludge services. This should both improve the functionality of this product offering and the sale price as we expect to introduce this product to the market beginning in April 2011.

"We are pleased to have Dr. Yang spearhead our new software subsidiary," began Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. "By establishing HongTeng, we expect to accelerate our efforts to develop new software applications for large petrochemical clients such as China National Petroleum and Sinopec. HongTeng will complement and leverage the team established in September to develop new resource management software products, while providing a conduit for generating additional high margin revenues from our installed customer base."

As a nationally authorized software enterprise, HongTeng qualifies for income tax exemptions for the first two years, starting in calendar year 2011, and a 12.5% income tax rate for the three years after. Management expects the majority of the 2011 financial contributions from HongTeng to come from System Kikou before its new software products contribute more meaningfully to revenues in 2012.

About LianDi Clean Technology Inc.

LianDi was established in July 2004 to serve the largest Chinese petroleum and petrochemical companies. Through its four operating subsidiaries, Hua Shen Trading (International) Ltd., Petrochemical Engineering Ltd., Bright Flow Control Ltd. and Beijing JianXin Petrochemical Engineering Ltd., the Company distributes a wide range of customized valves and equipment and provides associated value-added technical and integration service. The Company also develops and markets proprietary optimization software for the polymerization process. In addition, LianDi is focused on the large, rapidly growing, clean technology market for oil refineries, projected to reach over $1 billion in the next 10 years. This market is expected to benefit from favorable Chinese government policies, including tax benefits and other incentives.

Cautionary Statement Regarding Forward-Looking Information

This press release may contain certain "forward-looking statements" relating to the business of LianDi and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the proceeds from the private placement on the Company's short term business and operations; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov )

SOURCE LianDi Clean Technology Inc.

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED