(CHDT) today reported the first order for terracotta-color, China-manufactured roof tiles had been placed with Overseas Building Supply (OBS), a wholly owned subsidiary of China Direct. The initial order of 44,400 roofing tiles has been sold to wholesalers on both the East and West Coasts of South Florida, and should ship within 30 days.
"Our perception is that the new terracotta-color roof tiles have been well received by South Florida wholesalers and, based on that, we expect additional sales once we have an inventory in the tiles for immediate supply to customers," said Howard Ullman, CEO and President of China Direct. "In order to maximize immediate sales opportunities in these roofing tiles, we have hired a salesperson, Bill Reese, to handle the Florida West Coast market and are in the process of hiring a salesperson in Nevada, another projected high-demand market for OBS roofing tiles," added Mr. Ullman.
OBS is also exploring market demand in South Florida for other tile configurations, such as the large 'S' barrel and multi-color mix barrel tiles. Samples of the new configurations are on the way for builder preview, and, if demand warrants, these samples will be tested for local South Florida governmental approval. If the roofing tiles pass, OBS expects the new configurations to be ready for sale in the late first or early second quarter of 2007. OBS has decided to put on hold the importation of concrete roof tiles and will focus on supplying the US market with clay tiles that weigh less than concrete tiles since freight from China is too expensive for concrete tiles at the current market price.
About China Direct: China Direct (www.chdt.us) is a holding company engaged through its operating subsidiaries in the following business lines: 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 (www.completepower247.com) is a majority-owned subsidiary engaged in turnkey solutions for standby commercial and residential power generation. Souvenir Direct Inc. (SDI) and Capstone Industries, Inc. (wwwcapstoneindustries.com) are companies engaged in product development, manufacturing, distribution, logistics and product placement into mass retail of consumer items. 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. 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. China Direct and OBS statements about potential markets for roofing tiles or the potential of any specific roofing tile is based solely on anecdotal evidence from conversations with potential customers and not on any extensive or formal market survey. Further, China Direct relies on outside investment to expand its operations and from time to time to fund day-to-day operations. Such financing may not be available on affordable terms or at all in the future to sustain or grow such new operations and such operations may not generate sufficient income to fund operations and growth. The lack of reliable funding or cash reserves from operations may undermine any China Direct or OBS efforts to sell or establish any market for Chinese-made roofing tiles. China Direct and its subsidiaries currently rely mostly on funding from officers, directors and other affiliates and such funding may not be available for future operations or to establish the roofing tiles markets in South Florida. China Direct and OBS expectations with respect to the roofing tiles may not, even if realized, have any significant impact on China Direct's financial condition. China Direct and its subsidiaries 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" suitable only for those who can afford to lose their entire 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. FT. LAUDERDALE, FL, Oct 05, 2006 (MARKET WIRE via COMTEX) -- China Direct Trading Corp.
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