• Pre-money valuation of $95 million gives investors a 23.3% stake
• Investment was the result of months of due diligence
• Capital will be used to build a new DAC production line in Jucheng

BEIJING ¨CSeptember 6, 2011 ¨C LianDi Clean Technology Inc. (OTC Bulletin Board: LNDT), ("LianDi" or the "Company"), a leading provider of clean technology, downstream flow equipment, engineering services and software to China's leading petroleum and petrochemical companies, today announced that it had received a $22 million investment in its Anhui Jucheng subsidiary(¡°Jucheng¡±).
Shanghai Chengding Investment (¡°Chengding¡±) and Shanghai Aoying Investment (¡°Aoying¡±) with other four Mainland Chinese investment funds, acquired a 23.3% interest in Liandi¡¯s Anhui Jucheng subsidiary, giving Anhui Jucheng a pre-money valuation of $95 million.
The investment proceeds will be utilized to expand Jucheng¡¯s production capacity, specifically to produce 60,000 tons of anion and cation-based polyacrylamidechemicals, which are utilized for oil displacement agent for the tertiary oil recovery and water treatment. Additionally, Jucheng will become the first producer of a chemical, (Aacryloxyethyltrimethyl Ammonium Chloride) (¡°DAC¡±), which is a raw material utilized for producing cation-based chemicals. China has traditionally relied on foreign imports to provide supplies of DAC, specifically BASF SE, the largest chemical manufacturer in the world.
Total capital expenditures for this expansion are anticipated to be approximately $22 million. The new production lines are expected to commence production by April 2012.
¡°We are very pleased to complete this important milestone. This capital injection will enable us to rapidly expand into new markets where we see significant growth potential. We believe that having two discerning Chinese private equity firms invest in one of our operating companies at a higher valuation than LianDi¡¯s entire market capitalization confirms management¡¯s desire to unlock shareholder value,¡± said Jianzhong Zuo, Chairman of LianDi.
¡°I am extremely pleased with our entire management as they worked tirelessly with Guigu and Dingcheng for the past 6 months while the two firms conducted rigorous due diligence on LianDi and Anhui Jucheng. This included detailed inspections of our production facilities, customer base, operating licenses, financial records and other related items. These investors clearly saw the value of Anhui Jucheng¡¯s strong position and ability to capitalize on a rapidly growing market,¡± concluded Mr. Zuo.