ShengdaTech Producing Nano-Precipitated Calcium Carbonate at Maximum Capacity

ShengdaTech, Inc. ("ShengdaTech" or the "Company") (NASDAQ:SDTH), the leading manufacturer of nano-precipitated calcium carbonate ("NPCC") in China, today announced that the first phase of the Company's new NPCC facility in Zibo, Shandong Province with annual capacity of 60,000 metric tons ("MT") is operating at 100% utilization rate since January, 2010.

The initial phase of the Zibo facility began production at the end of August
2009 and, as planned, quickly ramped up to 100% utilization in January 2010.
ShengdaTech's current aggregate annual capacity of 250,000 MT is operating at full capacity demonstrating strong demand for the Company's wide-range of NPCC products.

The Company's Zibo facility, including 58-acres, has a total designed annual production capacity of 240,000 MT, which will be built-out in several phases. The production building currently housing Phase I provides extra space that can hold an additional 40,000 MT of capacity. The remaining 40,000 MT of capacity can be brought online with the purchase and installation of additional equipment.

"In the last few years, our management team has diligently executed our NPCC strategic plan by launching new breakthrough applications, expanding capacity, and entering new markets. Our ability to aggressively expand capacity, increase market penetration, and capture a larger market share remains a crucial part of our success," commented Mr. Xiangzhi Chen, president and CEO of ShengdaTech. "We expect 2010 to be another year of substantial growth for ShengdaTech as we broaden our geographic footprint by reaching into the high-potential Yangtze River Delta economic region with our newly acquired NPCC facility in Anhui Province. We are confident that our presence in this prospect-rich area will measurably strengthen our selling efforts domestically as well as internationally."

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