China Cinda Has Become Strategic Shareholder of Lumena New Materials

HONG KONG, May 16, 2011 /PRNewswire-Asia/ -- China Lumena New Materials Corp. ("Lumena New Materials" or the "Company", HKEx stock code: 67), the world's largest PPS resin producer* and one of the world's leading thenardite producers**, is pleased to announce that China Cinda Asset Management Co., Ltd. ("China Cinda") has become one of the strategic shareholders of Lumena New Materials.

Pursuant to the Very Substantial Acquisition Agreement with Sino Polymer New Materials Co., Ltd. ("Sino Polymer") dated 19 October 2010, Sky Success Investments Ltd. ("Sky Success"), one of the shareholders of Sino Polymer, has entered into an agreement on convertible notes ("Agreement") with China Cinda. According to the Agreement, China Cinda has a right to acquire, upon Completion, from Sky Success a total of up to 116,341,683 Shares. China Cinda is confident on the business prospect of Lumena New Materials that it decided to exercise warrants for the option shares and become one of the strategic shareholders of Lumena New Materials. It also decided to hold the shares in medium to long term. China Cinda (Hong Kong) Investment Management Company Limited, a whole-owned sunsdiary of China Cinda, also increased its position in Lumena New Materials in the market recently.

Mr. Zhang Zhigang, Chairman and Executive Director of Lumena New Material, said, "We are pleased to have China Cinda and China Cinda (HK) as our strategic shareholders. This is a vote of shareholders' confidence in profitability and business prospect of the Company. We will keep focusing and maintaining the rapid growth and seize rising market opportunities at the back of the Chinese Government's 12th Five-Year Plan, in order to enhance profitability and to maximize returns to shareholders."

About China Lumena New Materials Corp.

As a leading new materials and chemical enterprise in China, Lumena New Materials is the world's largest PPS resin producer* and one of the world's leading thenardite producers**. PPS is a special engineering thermoplastic widely used in electrical and electronic, automotive, rail transportation, environmental protection and emissions reduction, aeronautics and astronautics, and coatings applications, etc. It has been listed as one of the new materials to be developed and supported by the China's government in its 12th Five-Year Plan. The Company manufactures, develops and sells PPS resin, PPS compounds and PPS fibre.

Equipped with the world's largest single line production facility, the Company produces numbers of high quality thenardite products such as powder thenardite, specialty thenardite and medical thenardite. It operates four captive underground glauberite mines and is the only approved and certified producer of medical thernadite in China.

*In terms of production capacity as of December 31, 2009, according to SRI Consulting, an independent research service firm

** In terms of production capacity as of 31 December 2010, according to Behre Dolbear & Company (USA) Inc., an independent market research consultant

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