China Lumena New Materials Corp Clarifies that the Media Reports on the Major Shareholder to Dispose of Shares of the Company is not True

HONG KONG, May 13, 2011 /PRNewswire-Asia/ -- China Lumena New Materials Corp. ("Lumena New Materials" or the "Company", stock code: 67), the world's largest PPS resin producer* and one of the world's leading thenardite producers**, would like to clarify that the media reports which related to the intention of the major shareholder of the Company to dispose of 1 billion shares of the Company at discounted price is not true.

According to the Subscription Agreement with Stable Investment Corporation ("SIC"), a wholly-owned subsidiary of China Investment Corporation ("China Investment") and CITIC Capital China Access Fund Limited ("CITIC Capital"), a private investment fund managed by a subsidiary of CITIC Capital Holdings Limited (the "Subscribers") on 7 April 2011 and the announcement of the issuance of convertible bonds to the subsidiary of China Investment and CITIC Capital on 7 May 2011, the controlling shareholder of the Company, Mr. Suo Lang Duo Ji has executed and delivered a deed of undertaking pursuant to which he undertakes that he shall own legally or beneficially and directly or indirectly, at least 30% of the outstanding Shares at all time from, and including, the Closing Date to, and including, the earlier of the date falling 24 months from the Closing Date.

Pursuant to the Very Substantial Acquisition Agreement with the vendor of Sino Polymer New Materials Co., Ltd. ("Sino Polymer") dated 19 October 2010, the shares held by the major shareholder, Mr. Suo Lang Duo Ji and the vender of Sino Polymer is still under the lock-up period and is not allowed to transfer. According to the disclosed information, Mr. Suo Lang Duo Ji is the only shareholder who owns more than 1 billion shares of the Company. The media reports which related to the intention of the major shareholder of the Company to dispose of 1 billion shares of the Company at discounted price is not true. The Company reserves the rights to legal action against the untrue reports.

The Company reiterates that the Company's shareholders and its management remain confident on the Company's future prospect. In addition to the strategic investment of China Investment and CITIC Capital, China Cinda Asset Management Co., Ltd. and its subsidiary has recently become a shareholder of the Company, which is a vote of confidence in profitability and business prospect of the Company. PPS, a major product of the Company, has been listed as one of the major new materials in Chinese Government's 12th Five-Year Plan. The Company will seize rising market opportunities to further expand its PPS and thenardite business with great potential, in order to maximize returns to shareholders.

About China Lumena New Materials Corp.

As a leading new materials and chemical enterprise in China, Lumena New Materials is the world's largest PPS resin producer* and one of the world's leading thenardite producers**. PPS is a special engineering thermoplastic widely used in electrical and electronic, automotive, rail transportation, environmental protection and emissions reduction, aeronautics and astronautics, and coatings applications, etc. It has been listed as one of the new materials to be developed and supported by the China's government in its 12th Five-Year Plan. The Company manufactures, develops and sells PPS resin, PPS compounds and PPS fibre.

Equipped with the world's largest single line production facility, the Company produces numbers of high quality thenardite products such as powder thenardite, specialty thenardite and medical thenardite. It operates four captive underground glauberite mines and is the only approved and certified producer of medical thernadite in China.

*In terms of production capacity as of December 31, 2009, according to SRI Consulting, an independent research service firm

** In terms of production capacity as of 31 December 2010, according to Behre Dolbear & Company (USA) Inc., an independent market research consultant

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Porda Havas International Finance Communications Group