ZST Digital Networks CEO Says The Company Believes That the Allegations Made Against It Are Baseless And Without Merit.

ZST Digital Networks, Inc. (NASDAQ:

) announces that its Chairman and Chief Executive Officer, Mr. Zhong Bo, has issued a letter to shareholders in response to short-seller allegations regarding the Company's operations, financial disclosure and transparency. The Company has received numerous inquiries from investors seeking further insight into the recent market speculation and share price volatility, which it believes are a result of targeted efforts on behalf of short-sellers to reduce ZST's share price and thereby profit financially. The Company believes that the allegations made against it by certain market participants are baseless and without merit. The Company's financial position and operations are fundamentally sound, and it continues to be well positioned to benefit from the growth opportunities in the IPTV and commercial GPS markets in Henan Province. The Company is in the midst of evaluating various legal options with respect to such baseless statements.