LianDi Clean Technology Inc. Announces Formal Signing of Exclusive Alliance with System Kikou Co.

· Combines System Kikou¡¯s proven technology with LianDi¡¯s strong relationships with Chinese oil companies
· $120 million market opportunity in China
· Expect to ship products in 5 months

BEIJING ¨C November 23, 2010 ¨C LianDi Clean Technology Inc. (OTC BB: 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 formally signed a 2-year exclusive distribution agreement with System Kikou Co., Ltd (¡°System Kikou¡±), a leading automated oil sludge treatment company based in Tokyo, Japan. Mr. Jianzhong Zuo and Mr. Hitoshi Minamiguchi, Chairman and CEO of LianDi and System Kikou, respectively, were present in Beijing to sign the landmark agreement.
¡°We could not have chosen a more ideal partner in China,¡± began Mr. Hitoshi Minamiguchi, Chairman and Chief Executive Officer of System Kikou. ¡°We are excited about the opportunity to capture the significant growth in the Chinese oil and petrochemicals industries by teaming up with an industry leader such as LianDi. We look forward to leveraging our technology expertise with their long-standing relationship and servicing capabilities with the largest oil companies in China.¡±
¡°We recognized that in order to penetrate the Chinese market, we needed a local partner with experience and a proven track record,¡± continued Mr. Hitoshi Minamiguchi. We were very impressed with the consistent, high-quality of service LianDi has demonstrated. We look forward to a long and prosperous relationship with LianDi.¡±
The PRC government recently mandated automated cleaning technologies to be used in all oil refiners in China starting on July, 1st, 2010 in order to improve the safety of refining operations. Management estimates the market for cleaning technologies is approximately $120 million, growing at about 7% per annum. Currently, only less than 20% of Chinese oil refineries use automated cleaning technologies compared to 80%-90% in developed countries. LianDi projects revenues of $3.5 million and net income of $1.5 million during the first twelve months after the initial order is shipped.
¡°We are honored to be chosen as System Kikou¡¯s exclusive partner in China,¡± stated Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. ¡°With over 300 installations of its advanced automated cleaning systems worldwide, System Kikou is a leader in an emerging industry. China has around 200 oil refineries compared to 122 five years ago. Rising regulatory standards and the ageing of oil refineries will
drive robust demand for automated cleaning and treatment systems. This agreement allows LianDi to be a significant competitor in this sector.¡±