Lizhan Environmental Receives Extension to Regain NASDAQ Listing Requirement and Approval for Listing on Capital Market

Lizhan Environmental Corporation

, one of China's leading manufacturers of eco-friendly fabrics made from patented technologies, announced today that the Company has received an additional 180 days to regain compliance with NASDAQ's minimum $1 bid price per share requirement. In addition, NASDAQ approved the Company's application to list its shares on the NASDAQ Capital Market. NASDAQ previously indicated to the Company that it had until April 9, 2012 to regain compliance with the minimum price per share requirement. However, based on the Company meeting the continued listing requirement for market value and all other applicable requirements for initial listing on the Capital Market with the exception of the bid price requirement, NASDAQ granted the Company 180 calendar days, to October 8, 2012, to regain compliance. If at any time during this additional compliance period the closing bid price of Lizhan's stock is at least $1 per share for a minimum of 10 consecutive business days, the Company will regain full compliance with its NASDAQ listing requirements.