National Press Release

TAIAN CITY, Shandong, China, June 19 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech Inc. ("ShengdaTech" or "The Company") (Nasdaq: SDTH) a leading manufacturer of nano precipitated calcium carbonate ("NPCC") and a major manufacturer of coal-based chemical products in Tai'an City, Shandong Province, PRC, today announced it has made a significant breakthrough in the development of a new NPCC product, "NPCCA301," for use in automobile undercoating paints.

NPCCA301 was developed by ShengdaTech's Research and Development (R&D) team in the Company's R&D Center in Shanghai. The use of NPCCA301 improves the quality of automobile undercoating paint, reduces damage caused by stone chips, rough weather conditions, and also prevents rusting. In addition, NPCCA301 cost advantage of approximately $75-$100 per metric ton has the potential to replace imported NPCC currently used by domestic producers of automobile undercoating paint. The Company estimates that the current domestic demand for NPCCA301 is around 60,000-80,000 tons annually.

"We are excited with the breakthrough of our new NPCC product and the application area for which it has been developed. This is a significant step in our efforts to expand the range of applications for NPCC," commented Mr. Chen, President and CEO of ShengdaTech. "Our R&D center remains dedicated to the high-potential application area of paint manufacturing, and in that effort we successfully have collaborated with two large domestic car producers who are now using NPCCA301 in production of automobile undercoating paint for certain models. We are also in the process of sample testing the new NPCC product with four potential customers. We expect to establish quickly a dominant position in the domestic market and penetrate the international market due to our proven value proposition of providing solutions to customers to help them produce higher-quality products at lower costs than material used in their current manufacturing processes."

About ShengdaTech, Inc.

ShengdaTech is engaged in the business of manufacturing, marketing and selling nano precipitated calcium carbonate ("NPCC") products and coal-based chemicals for use in various applications. The Company converts limestone into NPCC using its proprietary technology co-developed with Tsinghua University. ShengdaTech is the only company possessing proprietary NPCC technology in China. Its NPCC products are mainly exported to countries like South Korea, Singapore, Malaysia, Vietnam, etc. The Company is also engaged in the manufacture and sale of coal-based chemical products namely ammonium bicarbonate, liquid ammonia, melamine and methanol. The Company markets and sells its coal-based products mainly for chemical fertilizers and raw materials in the production of organic and inorganic chemical products, including formaldehyde and pesticides.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include, but are not limited to, such factors as unanticipated changes in product demand especially in the PVC, polyethylene, and paper industry, changes in composition of these industries, ability to attract new customers, ability to increase our product's applications, ability of our customers to sell products, cost of raw material, downturns in the Chinese economy, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission.

    For more information, please contact:

     Crocker Coulson, President
     CCG Elite
     Tel:   +1-646-213-1915
     Email: crocker.coulson@ccgir.com
     Web:   http://www.ccgelite.com

SOURCE ShengdaTech Inc.