LianDi Clean Technology Inc. Announces Major New $13 Million Software Contract with PetroChina

Thursday, Aug 26, 2010

LianDi Clean Technology Inc. (OTC:LNDT) (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 a new software contract with PetroChina Company Limited totaling approximately $13 million.

"We are delighted PetroChina has chosen our software for its command centers," stated Mr. Jianzhong Zuo, Chairman, Chief Executive Officer and President of the Company. "This major contract with one of China's largest companies, indeed one of the largest companies in the world, reinforces the market acceptance of the technical capabilities of our software. We look forward to working with PetroChina to help further improve its operating efficiencies across other parts of its workflow."

LianDi will implement its proprietary logistics optimization software to automate various parts of PetroChina's oil production process, including production planning, logistics, demand forecasting and scheduling management. By installing LianDi's software across multiple parts of its operations, including oil refining and oil distribution, PetroChina will have better access to more data across several parts of its business. The Company will install the software platform across logistics dispatch command centers in six provinces, as well as provide specific programming implementation services.

Management expects to complete the current contract, totaling approximately $13 million in revenues, in 12 months. The Company intends to discuss deploying software and services to additional PetroChina facilities located in other provinces once the six pilot deployments are operational.

In fiscal year 2010, the Company generated total software sales of $6.4 million, 33% higher than in 2009. In the first quarter of fiscal 2011, which ended on June 30, 2010, the Company's software sales increased 300% year-over-year to $2.8 million. Gross margins on total software sales have historically been 85%-95%, significantly higher than the Company's average of 25%-35%.

Source: PR Newswire