ZST Digital Networks, Inc. (ZSTN) Success Leads to Share Repurchase Program

ZST Digital Networks, www.shenyangkeji.com – the digital/optical network hardware provider and installer widely known among Chinese cable system operators for its excellent reputation and innovative offerings, announced a share repurchase program today.

The Board of Directors at ZSTN validated the repurchase of an amount of shares not to exceed $1M in open market purchasing. Acquired shares, once purchased, will be cancelled and ZSTN will pursue the process in full accordance with Securities Exchange Act of 1934, Rule 10b-18.

Chairman and CEO of ZSTN, Mr. Bo Zhong, called the authorization by the Company’s Board of Directors a clear indication of abundant confidence in the overall growth outlook both for ZSTN and its operating areas.

Mr. Bo Zhong, pointing to the second half of 2010, sees increased uptake of products and services (which are very strong going into the second half) combined with strategic expansion of end markets into new and profitable opportunities.

The share repurchase program reflects ZSTN’s dedication to the concept of building long-term shareholder value, and Mr. Bo Zhong believes that the healthy financial position of the Company and solid balance sheet will allow the company to simultaneously execute the program while continuing to invest in and ramp-up the business.

With over 400 local cable networks installed/constructed in some 90 municipal districts, counties and enterprises in China, a strong GPS segment and widespread recognition in targeted markets, ZSTN is in a prime position to generate hearty returns.