ShengdaTech Appoints Three New Independent Directors to Board of Directors

Submits Application to List on NASDAQ Capital Market

TAIAN CITY, Shandong, China, March 5 /Xinhua-PRNewswire-FirstCall/ -- ShengdaTech (OTC Bulletin Board: SGAT), a leading nano-precipitated calcium carbonate (NPCC) and coal-based chemical products manufacturer in the People's Republic of China ("PRC"), today announced the appointments of three new independent directors, Mr. Carl Mudd, Mr. Sheldon B. Saidman, and Mr. Dongquan Zhang, effective February 23, 2007.

In addition to the appointment of the three new independent directors, ShengdaTech has submitted an application to list its common stock on the NASADQ Capital Market. Shares of ShengdaTech currently trade on the OTC Bulletin Board and will continue to trade on the OTC Bulletin Board until The NASDAQ Capital Market listing becomes effective. ShengdaTech's application for listing on The NASDAQ Capital Market is subject to approval by NASDAQ.

"We are delighted to add Mr. Mudd, Mr. Saidman and Mr. Zhang to our Board of Directors. They each bring to ShangdaTech a wealth of knowledge and experience in working with leading public companies in both the U.S. and China. As we expand our business we are also working to implement a solid corporate governance policy in an effort to increase our transparency and fulfill our fiduciary duty to U.S. investors. With the addition of our new directors, the majority of the members of the Company's board of directors are independent, satisfying a key requirement to apply for a NASDAQ Capital Market listing," said Xiangzhi Chen, CEO of Shengdatech, Inc. "In becoming a NASDAQ listed company we hope to expand our list of potential investors and increase both our liquidity and visibility in the market."

Mr. Mudd has been appointed to serve as the Chairman of ShengdaTech's Audit Committee. He brings to Shengdatech more than fifteen years of experience in financial and operational management in publicly held and privately owned U.S. and international corporations, especially in Asia and the Peoples Republic of China. Recently, he served as Advisory Director for CIMIC Holdings Limited, a Shanghai based leading ceramic tile manufacturer & retailer. Prior to that, he was the Chairman of AM International's Audit Committee, an AMEX listed company. Mr. Mudd's professional experience also includes serving in top management positions at Consultant, Thomas Group, Inc., Voyager Expanded Learning, Inc., Eljer Industries, Inc., Color Tile, Inc., Curtis Mathes, Inc., OPI Ltd., Mitsubishi Aircraft International, Inc., and Price Waterhouse & Co.

Mr. Saidman has been appointed to serve as the Chairman of ShengdaTech's Compensation Committee. He has over 40 years of experience in executive management with major corporations such as IBM Corporation and FedEx Kinko's. During 2001 to 2005, Mr. Saidman was President and COO at Liberty Wire & Cable, Inc., where he was instrumental in growing the company's revenue from $13 million to over $50 million. Prior to that, he was an Area Vice President of FedEx Kinko's overseeing a 12-state territory and a 100 person sales force and responsible for over $58 million in revenue. Mr. Saidman received his Bachelor degree in Journalism and Public Relations from the University of Maryland's School of Business in 1964.

Mr. Zhang has been appointed to serve as the Chairman of ShengdaTech's Governance and Nominating Committee. He has over 40 years of experience in China's chemical industry. From 2001 to the present, he has served as Counselor in Shandong Petro-Chemical Industry Association, Deputy Counselor Director in Shandong Chemical Society, Deputy Director in Shandong Environmental Industry Association as well as Counselor Director in Shandong Chemical Anti-Pollution Technology Association. Mr. Zhang also has over 20 years experience serving as Vice General Engineer Director in the Bureau of Petro - Chemical Industry (Shandong Province, PRC).

About ShengdaTech, Inc.

ShengdaTech is engaged in the business of manufacturing, marketing and selling a variety of 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. The unique chemical and physical attributes make NPCC a valuable ingredient in tires, paints, polyvinyl chloride ("PVC") building materials and other products. NPCC enhances the durability of many products by increased strength, heat resistance, and dimension stabilization. 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.

For more information, please contact:

Crocker Coulson, President

Leslie Richardson, Financial Writer

CCG Elite Investor Relations

Tel: +1-310-231-8600 ext 103

Email: crocker.coulson@ccgir.com

Rick Dean. U.S. Representative

ShengdaTech, Inc.

Tel: +1-716-626-3535

Email: rick@heritagemgmt.net