omniture

LianDi Clean Technology Inc. Announces Two New Software Contracts Totaling $2.7 Million

2010-07-15 22:12 1807

Orders represent 25% of projected FY2011 software sales

Software helps Petrochemical customers improve efficiencies

BEIJING, July 15 /PRNewswire-Asia-FirstCall/ -- LianDi Clean Technology Inc. (OTC Bulletin Board: 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 the signing of two new software contracts totaling approximately $2.7 million with Karamay Petrochemical Company and Fushun Petrochemical Company.

LianDi will implement its proprietary dynamic simulation training system for the operations staff at Fushun Petrochemical Company’s workers. The system uses sophisticated mathematical models for simulating and monitoring user interface, installation, pumps, valves, compressors, and reaction processes. The system does the training and assessment, and also can manage the reaction process by changing parameters real-time in the process. Implementation will take place over the next six months.

With Karamay Petrochemical Company, the Company signed a steam operation management system contract to improve utilization and increase energy efficiency at the Company’s steam power plant. The contract is to be implemented in four months. Through LianDi’s software, equilibrium and coordination of optimal plant steam use can be achieved. Excess steam can be redirected to reduce energy consumption while ensuring smooth production.

"Our dynamic simulation training and steam operation systems are key components of modern petrochemical enterprises," stated Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. "Since our software systems help optimize production processes and reduce related energy consumption in China’s petroleum and petrochemical industries, we expect the government’s growing emphasis on clean energy and technology will continue to benefit our software sales business in fiscal 2011."

In fiscal year 2010, the Company reported total software sales of $6.4 million, 33% higher than in 2009. For 2011, the Company anticipates generating approximately $ 9.4 million to $11.7 million in software sales, representing at least 47% growth and comprising about 8% to 10% of total revenues. Gross margins on total software sales are estimated to be at least 80%.

About LianDi Clean Technology Inc.

LianDi was established in July 2004 to serve the largest Chinese petroleum and petrochemical companies. Through its four operating subsidiaries, Hua Shen Trading (International) Ltd., Petrochemical Engineering Ltd., Bright Flow Control Ltd. and Beijing JianXin Petrochemical Engineering Ltd., the Company distributes a wide range of customized valves and equipment and provides associated value-added technical and integration service. The Company also develops and markets proprietary optimization software for the polymerization process. In addition, LianDi is focused on the large, rapidly growing, clean technology market for oil refineries, projected to reach over $1 billion in the next 10 years. This market is expected to benefit from favorable Chinese government policies, including tax benefits and other incentives.

Cautionary Statement Regarding Forward-Looking Information

This press release may contain certain "forward-looking statements" relating to the business of LianDi and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements regarding: the impact of the proceeds from the private placement on the Company’s short term business and operations; the general ability of the Company to achieve its commercial objectives, including the ability of the Company to sustain growth; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov )

For more information, please contact:

Company:

Joe Levinson, VP of Corporate Communications

Tel: +1-646-884-0829

Email: joe.levinson@china-liandi.com

Investor Relations:

HC International, Inc.

Ted Haberfield, Executive VP

Tel: +1-760-755-2716

Email: thaberfield@hcinternational.net

Source: LianDi Clean Technology Inc.
Related Stocks:
OTC:LNDT
collection