ShengdaTech Submits Compliance Plan

ShengdaTech, Inc. SDTH announced that on March 31, 2011, it has submitted to the Listing Qualifications Department of The Nasdaq Stock Market its plan to regain compliance with the Nasdaq listing rules. As previously announced in the Company's press release dated March 15, 2011, the Company appointed a special committee of the Board of Directors to investigate potentially serious discrepancies and unexplained issues relating to the Company and its subsidiaries' financial records identified by the Company's auditors in the course of their audit of the consolidated financial statements for the fiscal year ended December 31, 2010. Due to the pendency of the internal investigation, the Company has not been able to file its Annual Report on Form 10-K in a timely manner.