ShengdaTech Receives NASDAQ Notification and Information Request

ShengdaTech, Inc. SDTH announced that on March 16, 2011, it received a letter from the Listing Qualifications Department of The Nasdaq Stock Market advising the Company that due to its inability to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2010 with the Securities and Exchange Commission in a timely manner, the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1). The Company also received a request for information and documents from the Listing Investigation Department of Nasdaq.

As previously announced in the Company's press release dated March 15, 2011, the Company appointed a special committee of the Board of Directors who had commenced an internal investigation into 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, and, therefore, was unable to file its Annual Report on Form 10-K in a timely manner.