China XD Plastics Enhances Board of Directors and Establishes Audit, Compensation, and Nominating Committees

Appoints Four New Independent Directors to Board of Directors

HARBIN, China, June 2 China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), (OTC: CXDC) (BULLETIN BOARD: CXDC) , as the largest Chinese manufacturer engaged in the development, manufacturing, and distribution of modified plastics primarily for use in automotive applications, today announced that it has enhanced its Board of Directors with four new directors and established the Audit, Compensation and Nominating Committees. Mr. Lawrence W. Leighton serves as Chairman of the audit committee while Mr. Cosimo J. Pattiand and Mr. Linyuan Zhai serve as Chairman of the compensation and nomination committees, respectively.

These appointments bring the Company's Board of Directors to seven members, consisting of Mr. Jie Han, CEO and Chairman of the Board, Mr. Taylor Zhang, CFO, Qingwei Ma, COO, Mr. Lawrence Leighton, Mr. Cosimo Patti, Mr. Linyuan Zhai and Mr. Yong Jin. Mr. Leighton, Mr. Patti, Mr. Zhai and Mr. Jin are determined to be independent directors.

"Today's announcement exemplifies our commitment to strengthen our corporate governance system. On behalf of the Company, I welcome our new directors. We believe that their extensive experience working with leading public companies in both North America and China in business, finance, automobile and modified plastics industry as well as research and development of macromolecule material will provide guidance to the senior management team as we continue to grow our business and we look forward to working with them," stated Mr. Jie Han. "Their addition to our Board of Directors is the first step in the implementation of our new corporate governance policy, as we continue to build our modified plastics business."

Mr. Lawrence W. Leighton has been appointed to serve as the Chairman of China XD Plastics' Audit Committee. He brings to China XD Plastics over 40 year international investment banking experiences. He has served as director of Strategic Planning for Norton Simon Inc, a consumer products company, and he initiated and executed the acquisition of Avis Rent-a-car. Mr. Leighton was a Limited Partner of Bear Stearns & Co., a Managing Director of the investment bank of Chase Manhattan Bank and President and Chief Executive Officer of the U.S. investment bank of Credit Agricole, a major French Bank. Mr. Leighton received his BSE degree in engineering from Princeton University and an MBA degree from Harvard Business School.

Mr. Cosimo J. Patti has been appointed to serve as the Chairman of China XD Plastics' Compensation Committee. He brings to China XD Plastics strong financial consulting experiences. He had 15 years of working experiences at Lehman Brothers and serves in the position of senior vice president responsible for capital market support for government, fixed income and equity operations, and in the position of senior vice president at the Lehman global branch support responsible for the operational support for the international and domestic branch. Recently, he served as director of strategic cross border business for Cedel Bank in New York. He is an Arbitrator of SEC and National Association of Securities. Mr. Patti has been an Independent Director of American Oriental Bioengineering Inc. since 2004.

Mr. Linyuan Zhai has been appointed to serve as the Chairman of China XD Plastics' Nominating Committee. He brings 37 years of working experiences at the FAW Group, a major automobile manufacturer in China. Mr. Zhai served as general manager of automobile manufacturing, successfully led FAW Four Ring Company, a subsidiary of FAW group, to go public in China. He accumulated extensive entrepreneur experiences in the technology, production, and management in the automobile manufacturing industry. He has made contribution to the growth of the FAW Group in China, and he is an expert in the car manufacturing industry.

Dr. Yong Jin has been appointed to be an independent director to serve at China XD Plastics' board. He brings to China XD Plastics extensive research consulting experiences. Dr. Jin is an expert in the industry of modified plastics. He is a professor at Tsinghua University, an academician of the Chinese Academy of Engineering, an executive member of Chemical Industry and Engineering Society of China and Chinese society of particuology, vice chairman of China Institute of Ecological Economy, director of Industrial Ecology Economy and Technology Committee, Council Convenor of the Chemical discipline in the State Council Academic Degrees Committee, professional adviser for Beijing Municipal Government, and consultant for the scientific journal, "Chemical Engineering and Technology" of Germany. Jin has published more than 350 papers in important journals and conferences domestically and internationally, 138 of which were included in SCI. Jin also received more than 30 patent applications.