LianDi Clean Technology Inc. Announces Landmark Strategic Alliance with
Leading Japanese Oil Sludge Company

· System Kikou is One of World¡¯s Leaders in Oil Sludge Treatment Technology
· After Recent Industrial Accidents in China, Chinese Government Now Mandates Automation of Oil Sludge Cleaning

BEIJING ¨C September 13, 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 entered into a strategic alliance with System Kikou Co., Ltd, located in Tokyo, Japan, one of the world¡¯s leading automated oil sludge treatment companies.
In June of this year, an industrial accident occurred at a major oil facility in China, killing 6 Chinese workers. This accident occured during the manual cleaning of oil sludge. Since then, the China government has mandated that all China¡¯s oil refiners switch to automated cleaning technology to protect the safety of workers. System Kikou is one of the world¡¯s leaders in this automated cleaning technology.
¡°This strategic alliance with System Kikou could not have come at a better time in terms of market opportunity,¡± said Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. ¡°China¡¯s oil companies know they have no choice but to use automated sludge treatment technology, and we are now exclusive Chinese partners with one of the world¡¯s leaders in this technology. This alliance complements very well our existing business and our ongoing relationships with other partners such as Poyam and DeltaValve.¡±
Not only does the technology protect workers and help the environment, it also results in a greater cleaning and recovery ¡°yield.¡± For example, a 100,000 kiloliter crude oil tank may leave 3000 cubic meters of sludge oil at the bottom of the storage tank. This Japanese technology is able to recover 2900 cubic meters of this sludge (more than 95%), which is a substantial improvement over recovery using manual labor.
Oil sludge is caused by oil solidifying or gelling in a storage tank. Sludge is often caused by an excess of water in the oil, and can cause major problems in oil storage tanks if not cleaned regularly. System Kikou¡¯s technology automates the sludge cleaning process. Currently, most Chinese oil refiners still use a manual cleaning process which greatly endangers the safety of workers.