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China Direct Reports $4.8 Million in April & May 2006 Generator Sales Contracts a 3,800% Increase over 2005 Sales

Results for First Two Months of Second Quarter Exceed Entire First Quarter Contracted Generator Sales

COOPER CITY, Fla., June 7, 2006 /PRNewswire-FirstCall via COMTEX News Network/ --
China Direct Trading Corp. (OTC Bulletin Board: CHDT) today announced that its Complete Power Solutions (CPS) subsidiary had total contracted generator sales for April and May 2006 of $4.8 million, which surpasses the total for the entire three months of the first quarter of FY 2006 of $4.2 million. The default rate for generator contract sales for the period January 2006 through May 2006 has remained at a low two percent of total contract sales.

"Consumer demand continues to run high for Complete Power Solutions' generators and we have invested in the inventory and installation personnel qualification that will enhance CPS' ability to fill generator sales contracts in a timely manner," said William Dato, CPS President. "CPS proprietary pre-formed low-vibration generator slabs have proven to be an extremely popular sales item to other standby power providers," he added.

Q1 2006 Versus First Two Months Q2 2006 Contracted Generator Gross Sales (1)
(Unaudited) Q1 2006 First Two Months Q2 2006 (April & May) Complete Power Solutions Gross Sales $3,150,000 $3,442,431 Gross Sales to Retailers $1,050,000 $1,385,600 ------------- -------------- Total Contracted Generator Gross Sales for stated period $4,200,000 $4,828,031 (1) Contracted generator sales represent the face value of generator installation contracts signed during the reported period, final revenue recognition for quarterly reporting purposes is determined by completed generator installations and related receipt of purchase price.
NOTICE: Actual financial results will vary based on auditor and other adjustments to the final audited and SEC-reported financial results. CPS receives forty percent deposit upon signing of each generator installation contract, forty percent upon delivery and the remainder upon completion of installation.

About China Direct: China Direct (http://www.chdt.us) is a holding company engaged through its operating subsidiaries in the following business lines: Overseas Building Supply (OBS) is engaged in manufacturing, distribution and logistics of building materials including but not limited to generators, roof tiles, interior doors, and insulation materials. CPS (http://www.completepower247.com) is a majority-owned subsidiary engaged in turnkey solutions for standby commercial and residential power generation. Souvenir Direct Inc. (SDI) (http://www.souvenirdirect.com) is engaged in product development, manufacturing, distribution, logistics and product placement into mass retail of souvenir and gift items in 29 countries. None of the web site URLs listed in this press release is incorporated into or is part of this press release.

FORWARD-LOOKING STATEMENTS: This press release, including any financial information and projections, contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements are based on China Direct's and its subsidiaries' managements' current expectations and assumptions, and involve risks and uncertainties. Such expectations and assumptions may prove to be faulty or incorrect and actual results may differ significantly, materially from those anticipated results set forth in such statements. Sales results for any period are not necessarily indicative of future sales or future sales growth. No forward- looking statement is or can be guaranteed. Current revenues and revenue growth is not a reliable indicator of future financial results and should not be relied upon by investors as such an indicator. The sale of power generators can be affected by a number of factors that are beyond the control of China Direct or CPS, including seasonal sales cycles, availability of affordable inventory financing, predatory pricing by competitors and weather conditions. China Direct and CPS undertake no obligation to publicly update any forward- looking statement, whether as a result of new information, future events or otherwise. Forward-looking statements in this press release and risks associated with any investment in China Direct, which is a "penny stock" company (and as such is deemed a "highly risky investment") should be evaluated together with the many uncertainties that affect our business, particularly those stated in the cautionary statements and risk factors in current and future China Direct SEC Filings, which statements we hereby incorporate by reference herein.

SOURCE China Direct Trading Corp.

Rich Schineller of China Direct Trading Corp., [phone], [e-mail] http://www.prnewswire.com

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