Xinde Technology Board Approves Plan for New High-Powered Diesel Engine Lines

WEIFANG, China, July 18, 2011 /PRNewswire-Asia/ -- Anticipating continuing rapid growth in China's economy, and following an extensive study of the diesel engine market, the Xinde Technology (OTCBB: WTFS) Board of Directors has approved plans for the development of a new line of Xinde Technology high-powered diesel engines.  The Company, a widely respected China-based designer and manufacturer of internal combustion engines and parts, particularly for China's $100 billion diesel engine and parts market, now plans to produce non-road combustion engines with power ranging from 200KW to 1500 KW.  These will be used primarily as marine engines, engineering machines, non-road generators, and machines for road construction, and will include 6-cylinder, 8-cylinder, 12-cylinder and 16-cylinder engine series.

Current Short Supply

According to Mr. Dianjun Liu, President and Chief Executive Officer of the Company, "The typical current customer wait for these higher powered engines is about is about six months, reflecting a very favorable supply/demand opportunity for us.  Our goal is to produce 5,000 to 10,000 of the higher-powered engines annually, potentially generating revenues of RMB one billion ($154,294,793) with profit margins exceeding 20%.  We already have begun initial preparation for this project and are aiming to see our first new high-powered products coming off the line in 2012."

About Xinde Technology Company

Based in China's Shandong Province in the city of Weifang, Xinde Technology Company, with fiscal 2010 revenues of $123 million, competes in three primary product segments, namely (1) fuel injection system products, (2) diesel engine products and (3) generator products. The Company has a broad range of products including non-vehicle diesel engines, diesel generators, injection pumps, injectors and three-coupling components, agricultural machinery and construction machinery which greatly reduces its comprehensive costs which, in turn, increases its competitiveness.  The Company's focus is on the domestic market in China, where its customers include several of China's largest companies in the country's most rapidly growing industries.  As a consequence, the Company's production volume has been growing approximately 30% annually.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations or beliefs, including, statements concerning the Company's operations, financial performance and condition. For this purpose, statements that are not statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety important factors, including, but not limited to, the impact of competitive conditions and effectiveness of marketing; changes in laws and regulations; fluctuations in costs of production, financing and other factors as discussed in the Company's reports filed with the Securities and Exchange Commission from time to time, In addition, the Company disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date hereof. No securities regulatory authority has either approved or disapproved the contents of this new release. This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements. The Company filings with the US Securities and Exchange Commission, including the quarterly report for the three months ended March 31, 2011 on Form 10-Q, can be viewed on EDGAR Online or www.sec.gov.

SOURCE Xinde Technology Company