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.