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, Nov. 23, 2010 /PRNewswire-Asia/ -- 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 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."

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 )