Complete Power Solutions Signs New Home Depot Agreement

China Direct Subsidiary Gains Ability to Locate Power Generator Sales Kiosks in 14 Broward County Home Depots

China Direct Trading Corp.'s (OTC BB: CHDT) majority-owned subsidiary Complete Power Solutions, LLC (CPS) today announced that the company has signed a new 2006 agreement with Home Depot that reaffirms CPS' position as the exclusive supplier to Home Depot of automatic standby generators for residential and commercial customers in Broward County. The new agreement also gives CPS the ability to locate sales personnel and information kiosks in all 14 Home Depot stores in Broward County.

Complete Power Solutions CEO Bill Dato said, "We have enjoyed a mutually beneficial partnership with Home Depot for the past year and I am happy to report that our performance on the sales, installation and customer satisfaction fronts has led to this expansion of our relationship. We believe that having onsite personnel to have direct interaction with the consumer and answer the difficult pre-sales questions of prospective customers will improve lead prequalification and close rates, allowing us to maximize our infrastructure efficiency and sales through the Home Depot channel."

CPS recently announced the doubling of their sales and support infrastructure to meet market demand for standby power generation in South Florida. CPS offers a turnkey power solution from sales, permitting, delivery, installation, maintenance and service of generators including fuel tanks. CPS also sells a Pre-Engineered proprietary concrete standby generator installation pad designed to reduce noise and to minimize vibration (STC Rating of 48) that is 1/3 the weight of normal concrete. CPS products and services can be seen at www.completepower247.com or call 877-499-9500.

China Direct recently announced revenue growth in Q1 2006 of 2100 percent versus the corresponding quarter of 2005 that was primarily driven by CPS sales of power generators. China Direct will be reporting final results for the first quarter on or before May 15, 2006 and will also conduct an investor conference call on May 15, 2006 to discuss overall corporate performance and developments with respect to each of its subsidiaries.

About China Direct

China Direct (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 (www.completepower247.com) is a majority-owned subsidiary engaged in turnkey solutions for standby commercial and residential power generation. Souvenir Direct Inc. (SDI) (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 are incorporated into or are 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. No forward-looking statement is or can be guaranteed. Current revenues and revenue growth are 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.

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