ShengdaTech Receives NASDAQ Panel Decision and Announces Hiring of New Audit Firm

ShengdaTech SDTH reported today that the Company has received a determination indicating that the NASDAQ Listing Qualifications Panel has denied the Company's request for continued listing on NASDAQ and, accordingly, NASDAQ suspended trading of the Company's shares effective with the open of business, June 10, 2011 pending the formal delisting of the Company's securities from the exchange. As a result the Company's common stock commenced trading on the over-the-counter market at the opening of trading on June 10, 2011. The Company intends to appeal the Panel's determination to the NASDAQ Listing and Hearing Review Council. The Company remains committed to executing on the compliance plan previously presented to NASDAQ. The special committee, with the support and cooperation of the Company, is focused on completing the investigation and audit process so that any concerns about the Company can be properly addressed and the Company can provide accurate and complete information to its shareholders and the investing public.