Based on preliminary estimates, the company anticipates that its revenues, gross profits, gross margin, net income and earnings per share will be as follows:

Lifang Chen, Chairwoman and CEO of Sutor Technology Group, commented "We believe that our strong financial performance for the fourth fiscal quarter 2011 reflects the benefits and advantages of our diversified product mix, vertically integrated business model, strong brand name recognition, and our ability to continue market expansion, which distinguishes Sutor from its competitors. Despite the uncertainty in the global economy and high volatility in the capital market, we remain focused on seeking operating excellence and delivering outstanding customer services. We encourage investors to tour around our manufacturing facilities and visit our website for the latest developments of our company. We will provide more details on our fourth fiscal quarter and full fiscal year performance when we submit our annual report on Form 10-K at the end of September."

The management will not hold a conference call after the release. The preliminary financial results were announced in anticipation of the Company's expected participation in Rodman & Renshaw's Annual Global Investment Conference to be held from September 11 to September 13 in New York City. The management expects to present the preliminary fourth fiscal quarter financial results at the conference.

Because the Company has not finalized its financial closing procedures for the fiscal year ended on June 30, 2011, this unaudited financial information is, by necessity, preliminary in nature, based only upon preliminary information available to the Company as of the date of this press release and has not been reviewed by the Company's independent registered public accounting firm. The Company's actual results of operations for the fourth fiscal quarter ended June 30, 2011, as reported in such earnings release, could differ materially from its estimates due to completion of the Company's financial close procedures, final adjustments and other developments that may arise before such financial results are finalized. Accordingly, readers should not place undue reliance on the foregoing unaudited financial information.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is a leading private China-based manufacturer and distributor of high end fine finished steel products and welded steel pipes used by a variety of downstream applications. The Company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. These products are used for household appliances, solar waters heaters, automobiles, IT, construction, etc. To learn more about the Company, please visit http://www.sutorcn.com/en/index.php

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, our expected financial performance in the fourth fiscal quarter, liquidity and strategic and operational plans, our future growth and operating results, our expectations regarding the market for our products, our expectations regarding the inflation, Chinese economy and steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2010, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

SOURCE Sutor Technology Group Limited

First Fiscal Quarter 2011 Financial Results:

Commenting on the first fiscal quarter's performance, Ms. Lifang Chen, Chairwoman and CEO of Sutor said, "I am pleased with the significant increases in gross profits, net income and earnings per share. In the first fiscal quarter, our orders and production output was more heavily focused on advanced PPGI products that required sophisticated processing procedures and hence more production time. The result was lower total production volume, but higher profit margin products. In addition, Sutor benefited from higher commodity prices and sales prices as inflation pressures were present in the major sectors of the economy."

Ms. Chen continued, speaking about the strategy and outlook for the Company, "We accelerated our efforts to tap into new geographic markets including opening a new regional office in Chongqing, a major economic hub in Southwestern China. The region is expected to enjoy higher economic growth rate than the rest of China due to the Chinese government's preferential going-to-the-west policies."

"In the coming months, we plan to participate in a number of international steel products trade shows in an effort to increase our brand recognition and build a strong global presence. As part of our long-term growth strategy, we continue to pursue selective domestic M&A opportunities and seek other opportunities for strategic cooperation with leading domestic and international steel companies to produce advanced products to meet the increasing demand from the on-going urbanization and industrial upgrading in China. We are optimistic about our financial outlook and expect improved financial performance for fiscal year 2011 over the last fiscal year." Ms. Chen concluded.

First Fiscal Quarter 2011 Financial Results:

Revenues. Revenues were $101.9 million in the first fiscal quarter of 2011, compared to $123.8 million for the same period last year, a decrease of $21.9 million, or approximately 17.7%. The decrease was primarily attributable to lower production volume for our PPGI products and reduced trading businesses. During the first fiscal quarter of 2011, we produced more advanced PPGI products that required sophisticated processing procedures and hence more production time than we did in the same period a year ago. We also made a strategic decision to significantly reduce our subsidiary Ningbo Zhehua's lower-margin steel trading business, which contributed to lower total sales revenues.

Gross profit. Gross profit was $8.4 million in the first fiscal quarter of 2011, compared to $4.4 million in the same period last year, an increase of $4.0 million, or approximately 91.4%. Gross margin increased to 8.3% for the first fiscal quarter of 2011 from 3.6% for the same period last year. The increased gross margin mainly resulted from changes in product mix and reduced lower margin trading revenues.

Selling expenses. Selling expenses were $1.4 million for the first fiscal quarter of 2011 compared to $1.6 million in the same period last year, a decrease of 13.9%. The decrease was mainly attributable to lower sales revenues.

General and administrative expenses. General and administrative expenses were $1.6 million in the first fiscal quarter of 2011, compared to $1.3 million in the same period last year, an increase of $0.3 million, or approximately 27.0%. The increase was partially due to a credit to the expenses related to fixed assets in the same period last year and some one-time office building renovation expenses for the current period.

Income from operations. Income from operations was $5.4 million in the first fiscal quarter of 2011 compared to $1.5 million in the same period last year, an increase of $3.9 million, or approximately 258.4%.

Net income. Net income was $3.4 million in the first quarter of fiscal 2011, compared to $0.5 million in the same period last year, an increase of $2.9 million, or approximately 581.6%.

Financial Condition:

As of September 30, 2010, the Company had cash and cash equivalents of $17.1 million plus $45.1 million in restricted cash and working capital of $107.5 million. Stockholders' equity increased 3.9% to $177.4 million, compared to $170.8 million as of June 30, 2010. The management expects to have sufficient capital for normal operations at its current level during the remainder of fiscal year 2011.

Conference Call Information

Sutor's management will host an earnings conference call today, November 12, 2010, at 9:00 a.m. Eastern time. Listeners may access the call by dialing US: +1-877-847-0047, CN: 800 876 5011, HK +852 3006 8101, access code: SUTR. A recording of the call will be available shortly after the call through December 12, 2010. Listeners may access it by dialing US: +1-866-572-7808, CN: 800 876 5013, HK: +852 3012 8000, access code: 480651.

Functional Currency and Translating Press Release

The functional currency of the Company is the Chinese Yuan Renminbi ("RMB"); however, the accompanying financial information has been expressed in the US Dollars ("USD"). The consolidated balance sheets have been translated into USD at the exchange rates prevailing at each balance sheet date. The consolidated statements of operations and cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. Transactions in the Company's equity securities have been recorded at the exchange rate existing at the time of the transaction.

About Sutor Technology Group Limited

Sutor (Nasdaq:SUTR - News) is a leading China-based manufacturer and distributor of high end fine finished steel products and welded steel pipes used by a variety of downstream applications. The Company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit June 30, 2010, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

Financial Tables:

    Fiscal Fourth quarter results highlights:

                                  4Q 2010    4Q 2009             Change
    Revenues (million):           $125.3     $109.8              14.1%
    Gross profit (million):       $10.5      $6.3                66.7%
    Net income (million):         $3.4       $1.8                88.9%
    EPS:                          $0.08      $0.05               60.0%

    Fiscal year 2010 results highlights:

                                  FY2010      FY2009             Change
    Revenues (million):           $478.7      $429.8             11.4%
    Gross profit (million)        $32.8       $36.3             -9.6%
    Net income (million)          $11.3       $18.7             -39.6%
    EPS                           $0.29       $0.49             -40.8%

Commenting on Sutor's operations, Ms. Lifang Chen, Chairwoman and CEO, said, "We are pleased with our performance in the fiscal fourth quarter which demonstrated significant improvement over the same period last year. The record high annual revenues were the result of our continued effort to expand our markets despite the uncertainties during economic recovery. In the fourth quarter sales volume increased approximately 3.9% over the same period last year. For the fiscal year, sales volume was approximately 27.1% higher than fiscal year 2009. Demand for our products remained strong as our products are extensively used in almost all major sectors of the economy. Last fiscal year was a year of consolidation and stabilization and hence we are optimistic about the overall performance in fiscal year 2011."

Ms. Chen continued, "We are pleased to see the continued increase in annual revenue attributable to our efforts to expand market share in both domestic and overseas markets. Although the record annual revenue did not transform to increased annual net income as a result of rising production costs and increased selling expenses, the widened sales channels have laid a solid foundation to expand future sales. Additionally, we made significant efforts to differentiate ourselves from other competitors through investing in research and development. We applied for 15 patents in fiscal year 2010, two of which have been approved. As of June 30, 2010, we held 23 patents and had 36 patent applications pending and believe our R&D initiatives will enhance Sutor's long-term competitive edge."

"Looking to fiscal year 2011, our priority is to maximize the capacity utilization rate, especially for our 400,000 MT hot-dip galvanization production lines that began operations at the end of September 2008. While we expect lingering uncertainty regarding general economic conditions, we will focus on generating cash from operations, reducing expenses, and improving operations to grow Sutor from both the top and bottom line. In addition, we aim to take advantage of the overcapacity situation in the upstream segment of the Chinese steel industry and reduce the costs of production. Further, we plan to expand our research center to develop high-performance and high margin steel sheets and composite steel sheets to enhance our product offerings and profitability. Finally, even though we believe our current corporate transactions are transparent, we will take additional measures to further improve corporate transparency and earnings quality. We will continue to pursue our vision of becoming the largest private fine processed steel manufacturer and contribute to the on-going industrial upgrading and urbanization processes in China," concluded Ms. Chen.

Fourth Fiscal Quarter 2010 Financial Results

Revenue. Revenue was US$125.3 million in the fourth fiscal quarter 2010, compared to US$109.8 million revenue in the fourth fiscal quarter 2009, an increase of 14.1%. The increase was mainly due to strong sales to both domestic and international markets. Sales volume increased by approximately 3.9% in the fourth fiscal quarter 2010 to approximately 176,900 metric tons as compared to the same period last year.

Gross Profit. Gross profit was US$10.5 million in the fourth fiscal quarter 2010, a 66.7% increase compared to US$6.3 million in the fourth fiscal quarter 2009. Gross margin was 8.4% in the fourth fiscal quarter 2010, compared to 5.7% in the fourth fiscal quarter 2009. The increase in gross margin was the result of an increase in the Company's average selling price year-over-year.

General and Administrative Expenses. General and administrative expenses increased US$0.8 million to US$1.9 million, or 1.5% of revenue, in the fourth fiscal quarter 2010 from US$1.1 million, or about 1% of revenue, in the same period last year.

Selling Expenses. Selling expenses increased US$2.1 million to US$3.6 million, or 2.9% of revenue, in the fourth fiscal quarter 2010 from US$1.5 million, or 1.4% of revenue, in the same period last year. The increase was mainly attributable to the increase in transportation costs due to higher international sales.

Income from Operations. Income from operations was US$5.0 million in the fourth fiscal quarter 2010, compared to US$3.6 million in the fourth fiscal quarter 2009, an increase of 38.9%. Operating margin for the fourth fiscal quarter 2010 was 4.0%, up from 3.3% in the fourth fiscal quarter 2009.

Net Income. Net income was US$3.4 million, or US$0.08 per diluted share, for the fourth fiscal quarter 2010 compared to US$1.9 million, or US$0.05 per diluted share, for fourth fiscal quarter 2009.

Fiscal Year 2010 Results

Revenue. For the fiscal year ended June 30, 2010, revenue was US$478.7 million compared to US$429.8 million during the same period last year, an increase of 11.4%. Sales volume increased by approximately 27.1% in fiscal year 2010 to approximately 746,000 metric tons as compared to the same period last year. The increase in revenue was primarily due to increased sales from the Company's new 400,000 MT HDG steel production lines of approximately US$99.8 million. Also benefiting revenue was the further implementation of the Chinese government's stimulus package and the rebound of downstream industries, which led to higher demand for fine processed steel products.

On a geographic basis, revenue generated from outside of China was US$53.7 million, or 11.2% of our total revenue for fiscal year 2010, as compared to US$45.4 million, or 10.6% of our total revenue for fiscal year 2009. This increase was mainly due to our efforts to expand product penetration into new markets and acceptance of our high value added anti-septic and anti- fingerprint products in international markets.

Gross Profit. Gross profit for the 2010 fiscal year was US$32.8 million, or 6.9% of revenue, compared to US$36.3 million, or 8.4% of revenue during the same period last year. The decrease in gross margin was mainly attributable to higher production costs caused by a larger proportion of smaller orders we received in fiscal year 2010. Further, lower capacity utilization ratio of our new HDG production lines also adversely affected the gross margin.

General and Administrative Expenses. General and administrative expenses increased US$0.9 million to US$6.4 million, or 1.3% of revenue, in fiscal year 2010 from US$5.5 million, or 1.3% of revenue, in fiscal year 2009.

Selling Expenses. Selling expenses increased 72.3%, to US$8.1 million, or 1.7% of total revenue, in fiscal year 2010 from US$4.7 million, or 1.1% of total revenue, in fiscal year 2009. The increase was mainly attributable to the rising costs of international sales.

The Company increased efforts on marketing and product promotion in the first fiscal quarter of 2010. In addition, transportation costs increased in the second half of fiscal year 2010 due to the increased percentage of international sales and freight costs.

Income from Operations. Income from operations in fiscal 2010 was US$18.4 million, a 29.8% decrease compared to US$26.2 million during the same period last year.

Net Income. Net income was US$11.3 million, or US$0.29 per diluted share, a decrease of 40.8%, compared to net income of US$18.7 million, or US$0.49 per diluted share, during the same period last year.

Financial Condition and Liquidity

The Company's cash, restricted cash and cash equivalents as of June 30, 2010 were US$61.7 million, compared to US$75.5 million as of June 30, 2009. As of June 30, 2010, the Company had working capital of approximately US$100.1 million. Stockholders' equity increased 7.9% to US$170.8 million, compared to US$158.3 million as of June 30, 2009.

In September 2010, Sutor established a non-binding strategic cooperation framework with China Construction Bank. With the cash and cash equivalents on the balance sheet and existing lines of credit, the management expects to have sufficient liquidity to carry out normal operations in fiscal year 2011.

Conference Call Information

Sutor's management will host an earnings conference call today, September 28, 2010, at 9:00 a.m. Eastern time. Listeners may access the call by dialing US: +1-877-847-0047, CN: 800 876 5011, HK +852 30068101, access code: SUTR. A recording of the call will be available shortly after the call for through October 28, 2010. Listeners may access it by dialing US: +1-866-572-7808, CN: 800 876 5013, HK: +852 3012 8000 access code: 480651.

Functional Currency and Translating Press Release

The functional currency of the Company is the Chinese Yuan Renminbi ("RMB"); however, the accompanying financial information has been expressed in United States Dollars ("USD"). The accompanying consolidated balance sheets have been translated into USD at the exchange rates prevailing at each balance sheet date. The accompanying consolidated statements of operations and cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. Transactions in the Company's equity securities have been recorded at the exchange rate existing at the time of the transaction.

About Sutor Technology Group Limited

Sutor (Nasdaq:SUTR - News) is a leading China-based manufacturers and distributors of high end fine finished steel products and welded steel pipes used by a variety of downstream applications. The Company utilizes a variety of in-house developed processes and technologies to convert steel manufactured by third parties into fine finished steel products, including hot-dip galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold- rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

     Mr. Jason Wang
     Director of IR
     Sutor Technology Group Limited
     Tel:   +86-512-5268-0988
     Email: investor_relations@sutorcn.com



    Financial Tables:



          Sutor Technology Group Limited And Subsidiaries Consolidated
                                 Balance Sheets

                                                    June 30,       June 30,
                                                      2010           2009
    ASSETS
    Current Assets:
      Cash and cash equivalents                 $  13,336,736  $  10,653,438
      Restricted cash                              48,315,962     64,811,741
      Trade accounts receivable, net of allowance
       for doubtful accounts of
       $498,620 and $816,268, respectively         10,913,736     12,107,602
      Other receivables                               929,507        463,916
      Advances to suppliers, related parties       96,776,181     76,391,552
      Advances to suppliers, net of allowance of
       $542,490 and $816,268, respectively          8,304,246     25,039,763
      Inventory, net of allowance for impairment
       of $102,028 and $0, respectively            40,179,358     44,163,502
      Notes receivable                                 73,437        178,237
      Deferred income taxes                           329,414        397,998

    Total Current Assets                          219,158,577    234,207,749

    Property and Equipment, net of accumulated
     depreciation of $25,914,352
     and $18,799,673, respectively                 70,018,522     77,242,707
    Intangible Assets, net of accumulated
     amortization of $415,178 and
     $345,130, respectively                         2,995,488      3,047,498

    TOTAL ASSETS                                $ 292,172,587  $ 314,497,954

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
      Accounts payable                          $  23,954,009  $  40,183,304
      Advances from customers                       6,769,481     18,805,901
      Other payables and accrued expenses           4,688,324      3,810,075
      Other payables - related parties                352,495        140,252
      Short-term notes payable                     82,128,484     80,232,845
      Short-term notes payable - related parties      587,492      9,900,727

    Total Current Liabilities                     118,480,285    153,073,104
    Long-Term Notes Payable                         2,859,995      2,859,995
    Long-Term Notes Payable - Related Parties              --        249,996
    Total Liabilities                             121,340,280    156,183,095

    Stockholders' Equity
      Undesignated preferred stock - $0.001 par
       value; 1,000,000 shares
       authorized; no shares outstanding                   --             --
      Common stock - $0.001 par value; 500,000,000
       shares authorized, 40,715,602 and
       37,955,602 shares
       outstanding, respectively                       40,715         37,955
      Additional paid-in capital                   42,465,581     42,233,307
      Statutory reserves                           12,629,151     12,601,921
      Retained earnings                            96,164,928     84,865,780
      Accumulated other comprehensive income       19,531,932     18,575,896
    Total Stockholders' Equity                    170,832,307    158,314,859
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $ 292,172,587  $ 314,497,954



    Sutor Technology Group Limited And Subsidiaries Consolidated Statements of
                     Operations And Comprehensive Income

                                                   For The Years Ended
                                                         June 30
                                                  2010              2009

    Revenue:
    Revenue                                $   234,633,835   $   238,043,282
    Revenue from related parties               244,053,884       191,710,186
                                               478,687,719       429,753,468

    Cost of Revenue
    Cost of revenue                            216,663,282       185,988,885
    Cost of revenue from related
     party sales                               229,216,965       207,458,120
                                               445,880,247       393,447,005

    Gross Profit                                32,807,472        36,306,463

    Operating Expenses:

    Selling expense                              8,066,336         4,668,095
    General and administrative expense           6,358,399         5,484,802

    Total Operating Expenses                    14,424,735        10,152,897
    Income from Operations                      18,382,737        26,153,566

    Other Income (Expense):
    Interest income                              1,106,114         1,502,168
    Other income                                   448,465           229,602
    Interest expense                            (5,840,518)       (6,064,680)
    Other expense                                 (366,926)         (729,302)
    Total Other Income (Expense)                (4,652,865)       (5,062,212)

    Income Before Taxes                         13,729,872        21,091,354
    Provision for income taxes                  (2,403,494)       (2,412,243)


    Net Income                             $    11,326,378   $    18,679,111

    Basic and Diluted Earnings per         $          0.29   $          0.49
    Common Share

    Basic Weighted Shares Outstanding           38,804,588        37,955,602
    Diluted Weighted Shares Outstanding         38,806,363        37,955,602


    Net Income                             $    11,326,378   $    18,679,111
    Foreign currency translation
     adjustment                                    956,036           587,942
    Comprehensive Income                   $    12,282,414   $    19,267,053



    Sutor Technology Group Limited And Subsidiaries Consolidated Statements of
                                Cash Flows

                                                     For The Years Ended
                                                           June 30
                                                     2010              2009
    Cash Flows from Operating Activities:

    Net income                                    11,326,378      $ 18,679,111
    Adjustments to reconcile net income to
     net cash provided by operating activities

      Depreciation and amortization                7,117,592         6,299,498

      Deferred income taxes                           70,410          (107,829)

      Stock based compensation                        36,663                --

    Loss (gain) on sale of assets                      3,550          (161,458)
    Changes in current assets and liabilities:

      Trade accounts receivable, net               1,253,074           143,247

      Other receivable, net                         (461,222)          389,688

      Advances to suppliers                       16,863,747        16,158,584

      Inventories                                  4,201,631        19,893,366

      Accounts payable                           (14,370,322)      (40,565,903)

      Advances from customers                    (12,085,352)       (1,986,380)

      Other payables and accrued expenses            716,464          (283,571)

      Other payables - related parties               351,048                --

      Advances to suppliers - related parties    (19,856,665)      (16,535,974)

    Net Cash Provided By (Used in) Operating
     Activities                                   (4,833,004)        1,922,379

    Cash Flows from Investing Activities:

      Changes in notes receivable                    105,314             7,301

      Purchase of property and equipment, net
       of value added tax refunds received        (1,519,153)      (17,433,620)

      Proceeds from sale of assets                        --           783,033

    Net change in restricted cash                 16,771,227        (2,247,589)

    Net Cash Provided By (Used in) Investing
     Activities                                   15,357,388       (18,890,875)

    Cash Flows from Financing Activities:

      Proceeds from issuance of notes payable    100,047,386       116,797,110

      Payments on notes payable                  (97,999,281)     (102,544,496)

      Proceeds from issuance of notes payable-
       related parties                               199,932         3,354,441

      Payments on notes payable - related
       parties                                   (10,352,520)       (2,520,812)

      Distribution to certain shareholders in
       connection with the reorganization of
       Ningbo                                     (6,615,825)               --

      Net proceeds from issuance of common
       stock and warrants                          6,814,196                --

      Proceeds from issuance of notes payable -
       principal shareholder                              --                --

    Net Cash (Used in) Financing Activities       (7,906,112)       15,086,243

    Effect of Exchange Rate Changes on Cash           65,026            41,352

    Net Change in Cash                             2,683,298        (1,840,901)
    Cash and Cash Equivalents at Beginning
     of Year                                      10,653,438        12,494,339

    Cash and Cash Equivalents at End of Year    $ 13,336,736     $  10,653,438

    Supplemental Non-Cash Financing
     Activities

    Offset of notes payable to related party
     against receivable from related parties    $  9,687,935     $          --

    Supplemental Cash Flow Information

      Cash paid during the year for interest    $  5,305,877     $   4,330,148

      Cash paid during the year for income
       taxes                                    $  1,761,019     $   3,131,154

    Second Fiscal Quarter 2010 Financial Highlights:

    -- Total revenue was US$115.2 million in the second fiscal quarter 2010,
       an increase of US$21.1 million or 22.4% compared to the same period
       last year

    -- Gross profit was US$8.6 million in the second fiscal quarter 2010, an
       increase of US$0.55 million, or 6.8% compared to the same period last
       year

    -- Net income was US$4.0 million for the second fiscal quarter 2010, an
       increase of US$0.8 million or 24.5% compared to the same period last
       year

    -- Fully diluted earnings per share were US$0.11 for the second fiscal
       quarter 2010, an increase of US$0.02 or 22.2% compared to the same
       period last year

Ms. Lifang Chen, Chairwoman and CEO of Sutor said, "We are pleased with the second fiscal quarter financial performance and believe our financial results demonstrate a rebound in the steel industry and improved operations at Sutor. Market demand was driven partially by the Chinese government's stimulus-related spending and on-going industrialization in China, combined with the recovery in the global markets. Sutor also benefited from the 13% export tax rebate issued by the Chinese government for the purpose of encouraging high-tech and high-quality product exports."

Speaking about the Company's operations, Ms. Chen continued, "We continue to diversify our customer base and introduce new, innovative product lines and look for business expansion opportunities. In the second fiscal quarter we launched three new products including decorative PPGI steel plate, nano- antibacterial PPGI steel plate and heat insulation PPGI. We expect to launch more new products in calendar year 2010 and our R&D team strives to align green energy with technologically innovative products.

"In November 2009 we completed the acquisition of Ningbo Zhehua Heavy Steel Pipe Manufacturing Co., Ltd. which reinforced our optimistic outlook about our leading position in the Chinese fine steel industry thanks to the integration of the two companies' business operations, sales channels, and supply chains. While we are working on a plan to expand capacity and promote our one stop solution for customers, we expect synergies of the acquisition will be maximized."

"Our philosophy of providing one-stop solution for fine finished steel is being fully implemented. Our one-stop solution means that we integrate high quality production, valued-added follow-on steel processing services, sales channels, logistics and delivery systems, all of which help to diversify our revenue stream and maximize customer value."

Second Fiscal Quarter 2010 Financial Results

Revenues. Revenues were US$115.2 million in the second fiscal quarter 2010 compared to US$94.1 million in the same period last year, a 22.4% increase. Domestic sales were US$99.8 million, a 24.8% increase, accounting for 87% of total revenues. International sales were US$15.4 million, a 9.3% increase, accounting for 13% of total revenue.

Total sales volume was 188,786 metric tons in the second fiscal quarter 2010 compared to 121,159 metric tons in the same period last year, a 55.8% increase. The increase of revenues and sales volume were mainly attributable to the company's new 400,000 metric ton HDG Steel production lines which contributed approximately $23.8 million in revenue during the second fiscal quarter 2010.

Gross Profit. Gross profit in the second fiscal quarter 2010 was US$8.6 million compared to US$8.1 million in the same period last year, a 6.8% increase. Gross margin was 7.5% for the second fiscal quarter 2010 compared to 8.6% for the same period last year. The decrease in gross margin was the result of the decrease in per unit sales price as well as a larger proportion of smaller sized orders received in the second fiscal quarter 2010 compared to the same period last year.

Operating Expenses. Operating expenses, which comprise general and administrative expenses and selling expenses, in the second fiscal quarter 2010 were US$2.2 million compared to US$3.2 million in the same period last year, a 31.3% decrease. General and administrative expenses in the second fiscal quarter 2010 were US$1.2 million, compared to US$2.0 million in the same period last year, a 38.9% decrease. The decrease was primarily the result of higher start up expenses associated with the new HDG Steel productions lines that began operations at the end of September 2008. Selling expenses in the second fiscal quarter 2010 were US$1.0 million compared to US$1.2 million in the same period last year, a 16.7% decrease. The decrease was primarily the result of increased cost controls at the Company.

Income from Operations. Income from operations was US$6.4 million in the second fiscal quarter 2010 compared to US$4.9 million in the same period last year, a 30.6% increase.

Net Income. Net income was US$4.0 million in the second fiscal quarter 2010, compared to US$3.2 million in the same period last year, a 24.5% increase.

Financial Condition

As of December 31, 2009, the Company had cash and cash equivalents of US$13.5 million plus US$61.5 million in restricted cash. The Company had working capital of US$83.4 million.

Recent Developments

On February 1, 2010, the Company hired Naijiang (Eric) Zhou as Vice President of Finance. Mr. Zhou's responsibilities include finance, strategic planning and analysis, investor communications, corporate development, and mergers and acquisitions. Mr. Zhou has more than fifteen years of financial and industrial experience with U.S. and Chinese companies as an investor, analyst and executive at multinational corporations.

Effective January 20, 2010, Gerard Pascale was appointed to serve as an Independent Director on the Board of Directors, Mr. Gerry Pascale also serves as Chairman of the Audit Committee. Mr. Pascale has extensive experience in financial accounting, financial analysis and planning, marketing research, corporate governance and securities.

Conference Call

The dial-in number for the conference call, which will begin today, Tuesday, February 9, 2010 at 9:00 a.m. U.S. Eastern Time (10:00 p.m. February 9, 2010 in Beijing/Hong Kong), is the U.S.: +1-877-847-0047; China: +800- 8765011; Hong Kong +852 30068101. The conference call passcode is Sutr. A live webcast of the conference call will also be available on our website at http://www.sutorcn.com . All related materials such as PowerPoint can be downloaded by investors from the website of Sutor.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is one of the leading China-based manufacturers and distributors of high end fine finished steel products and welded steel pipes used by a variety of down stream applications. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold- rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com .

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov . The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward- looking statements, except as required by law.

    For more information, please contact:

     Mr. Jason Wang
     Sutor Technology Group Limited
     Tel: +86-512-5268-0988
     Web: http://www.sutorcn.com

     Mr. Brian M. Prenoveau, CFA
     ICR, Inc.
     Tel: +1-203-682-8200


-- FINANCIAL TABLES FOLLOW --


                 SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)

                                                  December 31,      June 30,
                                                      2009            2009

    ASSETS
    Current Assets:
      Cash and cash equivalents                   $13,462,559      $10,653,438
      Restricted cash                              61,538,740       64,811,741
      Trade accounts receivable, net of
       allowance for doubtful accounts of
       $400,104 and $816,268, respectively          4,548,951       12,107,602
      Other receivables                               431,327          463,916
      Advances to suppliers, related parties       78,229,793       76,391,552
      Advances to suppliers, net of allowance
       of $718,085 and $817,159, respectively      11,375,273       25,039,763
      Inventory                                    41,270,322       44,163,502
      Notes receivable                                409,524          178,237
      Deferred income taxes                           289,458          397,998
    Total Current Assets                          211,555,947      234,207,749
    Property and Equipment, net of
     accumulated depreciation of $22,131,122
     and $18,799,763, respectively                 72,869,531       77,242,707
    Intangible Assets, net of accumulated
     amortization of $379,477 and $345,130,
     respectively                                   3,016,922        3,047,498
    TOTAL ASSETS                                 $287,442,400     $314,497,954

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
      Accounts payable                             $7,836,041      $16,077,413
      Advances from customers                      10,699,480       18,805,901
      Other payables and accrued expenses           4,592,180        3,950,327
      Short-term notes payable                    103,464,041      104,338,736
      Short-term notes payable - related
       parties                                      1,570,380        9,900,727
      Total Current Liabilities                   128,162,122      153,073,104
      Long-Term Notes Payable                       2,859,995        2,859,995
      Long-Term Notes Payable - Related Parties            --          249,996
    Total Liabilities                             131,022,117      156,183,095

    Stockholders' Equity
      Undesignated preferred stock - $0.001 par
       value;
       1,000,000 shares authorized; no shares
       outstanding                                         --               --
      Common stock - $0.001 par value;
       500,000,000 shares authorized;
       37,955,602 shares outstanding                   37,955           37,955
      Additional paid-in capital                   35,617,482       42,233,307
      Statutory reserves                           12,601,921       12,601,921
      Retained earnings                            89,393,605       84,865,780
      Accumulated other comprehensive income       18,769,320       18,575,896
    Total Stockholders' Equity                    156,420,283      158,314,859
    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                      $287,442,400     $314,497,954



                 SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                            AND COMPREHENSIVE INCOME
                                   (Unaudited)

                       For the Three Months Ended  For the Six Months Ended
                              December 31,                December 31,
                          2009            2008         2009          2008
    Revenue:

    Revenue           $55,735,197     $59,076,972 $112,539,762  $151,914,456

    Revenue from
     related parties   59,439,545      34,994,039  126,443,302    72,213,917

                      115,174,742      94,071,011  238,983,064   224,128,373
    Cost of Revenue

    Other cost of
     revenue           46,105,949      46,668,073  109,748,484    97,821,119

    Purchases from
     related parties   60,441,799      39,328,152  116,199,098   103,451,621

                      106,547,748      85,996,225  225,947,582   201,272,740

    Gross Profit        8,626,994       8,074,786   13,035,482    22,855,633

    Operating Expenses:

    Selling expense     1,044,382       1,226,596    2,648,478     1,962,761

    General and
     administrative
     expense            1,192,212       1,950,939    2,486,427     2,615,235

    Total Operating
     Expenses           2,236,594       3,177,535    5,134,905     4,577,996

    Income from
     Operations         6,390,400       4,897,251    7,900,577    18,277,637

    Other Income
     (Expense):

    Interest income       102,767         503,088      583,339       995,438

    Other income           47,161         237,012      366,964       292,584

    Interest expense   (1,268,151)     (1,792,095)  (2,615,049)   (3,323,141)

    Other expense         (82,689)       (413,122)    (322,278)     (544,985)

    Total Other
     Income (Expense)  (1,200,912)     (1,465,117)  (1,987,024)   (2,580,104)

    Income Before
     Taxes              5,189,488       3,432,134    5,913,553    15,697,533

    Provision for
     income taxes      (1,162,339)       (197,260)  (1,385,728)   (1,600,357)

    Net Income         $4,027,149      $3,234,874   $4,527,825   $14,097,176

    Basic and
     Diluted
     Earnings per
     Common Share           $0.11           $0.09        $0.12         $0.37


    Net Income         $4,027,149      $3,234,874   $4,527,825   $14,097,176
    Foreign currency
     translation
     adjustment            16.635          (4,588)     193,424       370,392

    Comprehensive
     Income            $4,043,784      $3,230,286   $4,721,249   $14,467,568




                 SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                                        For the Six Months Ended December 31,
                                                  2009             2008

    Cash Flows from Operating Activities:

    Net income                                   $4,527,825      $14,097,176
    Adjustments to reconcile net income
     to net cash provided by (used in)
     operating activities:

      Depreciation and amortization               3,407,563        2,689,333

      Deferred income taxes                         108,960          177,496

      Gain on sale of assets                             --         (161,340)

    Changes in current assets and liabilities:

      Trade accounts receivable, net              7,570,593        4,474,096

      Other receivables, net                         33,099         (719,793)

      Advances to suppliers                      13,689,581       34,307,460

      Inventories                                 2,941,681        7,737,497

      Accounts payable                           (6,173,319)        (401,533)

      Advances from customers                    (8,125,696)     (12,783,041)

      Other payables and accrued expenses         1,364,563         (983,921)

      Advances to suppliers - related parties   (11,259,630)      (5,383,047)

    Net Cash Provided by Operating Activities     8,085,220       43,050,383

    Cash Flows from Investing Activities:

      Changes in notes receivable                  (231,042)          (4,378)

      Purchase of property and equipment,
       net of value added tax refunds received     (999,732)     (17,388,802)

    Proceeds from sale of assets                         --          782,464

    Net change in restricted cash                 3,344,374       26,535,382

    Net Cash Provided by Investing Activities     2,113,600        9,924,666

    Cash Flows from Financing Activities:

      Proceeds from issuance of notes
       payable                                   84,726,744       73,688,527

      Payments on notes payable                 (85,716,426)    (128,568,239)

      Proceeds from issuance of notes
       payable - related parties                    199,932        5,787,323

      Distribution to shareholders               (6,615,825)              --

    Net Cash Used in Financing Activities        (7,405,575)     (49,092,389)

    Effect of Exchange Rate Changes on
     Cash                                            15,876           13,780

    Net Change in Cash                            2,809,121        3,896,440

    Cash and Cash Equivalents at Beginning
     of Year                                     10,653,438       12,494,339

    Cash and Cash Equivalents at End of
     Year                                       $13,462,559      $16,390,779

    Supplemental Non-Cash Financing
     Activities
      Offset of notes payable to related
       party against receivable
       from related parties                      $9,508,621             $--

    Supplemental Cash Flow Information
      Cash paid during the period for
       interest                                  $2,046,656       $2,965,696

      Cash paid during the period for taxes      $1,366,124       $2,181,554

"I am very delighted that Mr. Pascale has agreed to join our board. His deep financial knowledge, coupled with his extensive experience in serving and advising foreign-based American listed companies will serve us well. In addition, as we continue to grow, Mr. Pascale will provide the board a new perspective on corporate governance practices, strategic decision making, as well as an understanding of global capital markets," said Lifang Chen, Chairwoman and CEO of Sutor.

"It's an honor to serve as a member of the board for Sutor Technology Group. I have extensive experience working with the Sutor management team, as well as an understanding of their business model and financial statements. I believe that Sutor's leading position in the high-end steel industry and its efforts to focus on innovation-oriented product lines will benefit the company greatly despite the challenges of the low-end steel industry" said Gerry Pascale. "Based on the culture of innovation within the Company, its product mix and its continuous expansion of the sales network I believe Sutor is well positioned to succeed as the global economic recovery and China's impressive growth continue."

Mr. Pascale has extensive experience in financial accounting, financial analysis and planning, marketing research, corporate governance and securities. For the past two and a half years, he has served as President and CEO of SC Financial Group, LLC, where he specializes in advising both US and international clients on valuation, financial modeling and the responsibilities of publicly traded US companies. Previously, he was the Director of Finance at Heritage Management Consultants, Inc. where Mr. Pascale specialized in providing finance and SEC support throughout the entire process of listing on a US exchange. Prior to this, Mr. Pascale was a Director with the Corporate Executive Board, a consulting firm delivering data and tools, practice research and insight to clients. He has also held financial analyst positions with Intel Corporation and Emerson Electric. Mr. Pascale has a Bachelor of Science in Accounting from Virginia Tech and an MBA in finance from the University of Chicago.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com .

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov . The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

     Mr. Jason Wang
     Sutor Technology Group Limited
     Tel:   +86-512-5268-0988
     Web:   http://www.sutorcn.com

More than 100 distributors from Pearl River Delta Region, regarded as the most developed and industrialized region in China, and other provinces including Guangxi, Hunan, Fujian, Hainan are expected to participate in the event. The conference consists of three sections including new product introductions, interaction & contracts signing and facilities visits.

During the event, Lifang Chen, Chairwoman & CEO of Sutor and other senior officers will share the Company's development outlook, Research & Development (R&D) outline and new product characteristics. At the end of the conference, participants can visit Sutor's automated production lines and national level research and development center where new products and patents are launched.

"China's increasing level of industrialization combined with a limited number of high-end steel suppliers in Southern China provides Sutor with a strategic opportunity to expand market share, improve Huaye's brand recognition and enter new product markets like energy-saving and environmentally-friendly industries. With annual capacity of 400,000 metric tons, our new hot-dip galvanized production lines are an indication of our effort to meet this growing demand," commented Lifang Chen, Chairman and CEO of Sutor.

"Approximately 40% of fine steel products in the south of China are dependent on imports but we believe our production facilities in Changshu and Ningbo provide a geographic advantage that helps us access the Southern Chinese market cost efficiently. We continue to develop new distributors and upscale end customers, making Sutor confident that our strategy of providing a high quality value chain with market-driven R&D, world-class production facilities, a nationwide sales network and a highly efficient logistics delivery system will allow us to supply the increasing demand for fine steel products in the region.

"Currently, approximately 30% of our revenue is derived from Southern China, but we will strive to increase our market share in the region through new product introductions, a diversified product portfolio and multiple follow-up services as the Chinese economy remains robust," Ms Chen added.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com .

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products and our ability to improve our market share, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

     Mr. Jason Wang
     Sutor Technology Group Limited
     Tel: +86-512-5268-0988
     Web: http://www.sutorcn.com

     Mr. Brian M. Prenoveau, CFA
     ICR, Inc.
     Tel: +1-203-682-8200

The terms of the contract are for one year beginning on January 1, 2010. The products sold through the purchase agreements will be priced at the market at the time of shipment. Sutor typically schedules order production after receiving a 30% down payment for each order. Final delivery will take place only after receiving the remaining 70% of the total order amount. The Company's collection policy is an effort to minimize the risk of bad debt and promote healthy cash flow.

Under the contracts, Sutor will supply a total of 28,800 metric tons of hot-dip galvanized steel coils (HDGI) and 3,000 metric tons of pre-painted galvanized steel coils (PPGI) to Hubei Foreign Economic Relations and Trade Investment & Management Co., Ltd. and three other steel distributors. The four distributors are existing customers of Sutor and have purchased and distributed the "Huaye" brand of fine finished steel products since early 2008. "We are pleased to announce our recent contracts wins with long-term partners. We believe large size orders with existing customers demonstrate our commitment to high quality, technologically innovative products and superior customer service," said Lifang Chen, Chairwoman and CEO of Sutor.

Ms. Chen added, "We will continue to extend Sutor's market share with our expanding national sales channels and market driven R&D and we continue to improve our 'Huaye' brand recognition domestically and overseas through partnering with a variety of steel distributors. We believe these measures will help grow our business, diversify our customer base and offset potential economic uncertainties.

"As the result of stimulus-related spending on high-end manufacturing industries and environmentally friendly products, we remain optimistic about our performance in calendar 2010 thanks to our proactive R&D initiatives which are in line with the Chinese government's encouragement to develop energy- saving materials."

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com .

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected revenues from the new contracts, our expected financial performance in 2010 and future strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward- looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

     Mr. Jason Wang
     Sutor Technology Group Limited
     Tel:  +86-512-5268-0988
     Web:  http://www.sutorcn.com

     Mr. Brian M. Prenoveau, CFA
     ICR, Inc.
     Tel:  +1-203-682-8200

Ms. Lifang Chen, Chairperson and CEO of Sutor stated, "As an innovation- oriented enterprise in China's high-end steel industry, we continue our research and development efforts to design and produce the highest quality and most technologically advanced products in our industry. In light of the current market downturn and intensified competition in the low-end steel industry in China, we have been proactively enhancing our research efforts particularly in the areas of new energy and new material. New products from Sutor are the direct result of our growing research and development team that continues to strive for innovative ways to deliver high quality products to our clients.

"In the first half of 2010, we aim to release three new products including CIGS solar cells, zinc- titanium coated steel and hot-dip galvanized Aluminum- magnesium alloy rare earth coated sheet steel. These new products will also benefit from China's government initiatives focusing on energy saving, cost- efficient and environmentally-friendly new building materials."

In the second half of calendar 2009, the Company released three new products including new decorative pre-painted galvanized steel (PPGI) plate, nano-antibacterial PPGI steel sheet and heat insulation PPGI.

    -- Decorative PPGI steel plate - With improved printing techniques, Sutor
       has successfully addressed hurdles to be able to imprint delicate
       graphics onto PPGI steel sheets. It is now widely used as a decorative
       material for indoor & outdoor decorations, solar water heaters and
       household electronics.
    -- Nano-antibacterial PPGI steel plate - This new product has excellent
       antibacterial properties. It applies nanotechnology and the nano-silver
       antibacterial pharmaceutical developed by Mid-South University. The
       product is suitable for applications of construction materials, medical
       devices, slaughtering equipment and household electronics.
    -- Heat Insulation PPGI - Heat insulation helps to maintain the
       temperature difference between the interior and exterior of buildings.
       The characteristic is welcomed in the building and construction
       industry in which the demand for energy saving materials is increasing.

Ms. Chen continued, "We believe that our technological advantages are positively benefitting Sutor, which is reflected in the improving business trends experienced in late 2009 and we are excited about the broader range of market opportunities we're exploring.

"Through these new product initiatives, we are confident that our innovation-focused strategy will enable us to compete effectively in a challenging steel environment and maintain our leadership in China's fine finished steel market."

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, cold-rolled steel and welded steel pipe products. To learn more about the Company, please visit http://www.sutorcn.com.

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected release of new products and its anticipated impact on our financial performance, our expected strategic and operational plans, our future operating results, our expectations regarding the market for our products, our expectations regarding the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward- looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

     Mr. Jason Wang
     Sutor Technology Group Limited
     Tel:  +86-512-5268-0988
     Web:  http://www.sutorcn.com

     Mr. Brian M. Prenoveau, CFA
     ICR, Inc.
     Tel:  +1-203-682-8200

Located in Ningbo, China and incorporated in 2004, Zhehua produces and sells longitudinally welded steel pipes and spiral welded steel pipes with annual capacity of 400,000 metric tons. Zhehua's products are used for oil and natural gas transportation, construction piling, and public facilities (water supply, gas and sewage) among other industries. Zhehua has received the certification of the American Petroleum Institute (API), which is recognized as one of the most strict industry qualifications.

Chen Lifang, chairman and CEO of Sutor, said, "We are excited about the acquisition of Zhehua and expect the acquisition will be accretive to our earnings and broaden our product offerings. Sutor aims to establish an integrated model for R&D, production, processing and logistics in the upcoming years. We believe Zhehua adds to our competitive advantage of a vertically integrated producer in all aspects of the fine finished steel industry. We hope this acquisition marks the first step in a series of value-adding transactions."

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR - News) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com .

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products, our expectations regarding the continued growth of the steel market, expectations of the benefits to be derived from this acquisition, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These forward-looking statements are not guarantees of future performance. A number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov . The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

    In China:
     Mr. Jason Wang
     Sutor Technology Group Limited
     Tel:   +86-512-5268-0988

Following the earnings announcement, Sutor senior management will host a conference call the same day at 9:00 am (U.S. Eastern)/ 10:00 pm (Beijing/Hong Kong) to discuss Sutor's first quarter 2010 financial results and recent business activity. The conference call may be accessed by calling:

                               Toll Free               Toll
    United States           +1-877-847-0047
    China                    +800-876-5011
    Hong Kong                                     +852 3006 8101

    The pass code for the conference call is SUTR.

A telephone replay will be available shortly after the call on the investor relations page of Sutor's website at http://www.sutorcn.com . All related materials such as PowerPoint could be downloaded by investors from the website of Sutor.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR - News) is one of the leading Chinese private manufacturers of fine finished steel products used by steel fabricators and other applications. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com .

    For more information, please contact:

    Company Contact (PRC):
     Mr. Jason Wang
     Tel:   +86 512 52680988
     Email: investor_relations@sutorcn.com

Over 60 companies will be presenting at the conference, including US-listed Chinese companies and US-based companies with growth prospects in China. This conference is by invitation only.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR - News) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com.

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2009, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

    Mr. Jason Wang
    Sutor Technology Group Limited
    Tel: +86-512-5268-0988

Following the earnings announcement, Sutor senior management will host a conference call the same day at 9:00 am (U.S. Eastern)/ 9:00 pm (Beijing/Hong Kong) to discuss Sutor's fiscal year 2009 financial results and recent business activity. The conference call may be accessed by calling:

                            Toll Free                Toll
    United States           +1-877-847-0047
    China                   +800-876-5011
    Hong Kong                                        +852 3006 8101

The pass code for the conference call is SUTR.

A telephone replay will be available shortly after the call on the investor relations page of Sutor's website at http://www.sutorcn.com . All related materials such as PowerPoint could be downloaded by investors from the website of Sutor.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR - News) is one of the leading Chinese private manufacturers of fine finished steel products used by steel fabricators and other applications. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com .

    For more information, please contact:

    Company Contact (PRC):
     Mr. Jason. Wang
     Tel:   +86-512-5268-0988
     Email: investor_relations@sutorcn.com

Investors can access http://www.sutorcn.com and click on the "Investor Relations" icon to be directed to new pages that include dynamic historical quote data, updated financial information and recent development of SUTOR.

The Company and its Board and management pay close attention to investor relations activities and believe that maintaining effective communications with our current and potential investors in a timely manner will enable us a better development, and we also place great emphasis on listening to investors' feedback so as to improve our management and create greater value.

Your interest and opinion will be highly appreciated.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR - News) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com.

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our fine finished steel products, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended June 30, 2008, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

For more information, please contact:

Company Contact (PRC):
Mr. Jason. Wang
Tel: +86-512-5268-0988
US local number: +1-718-509-9097
Email: investor_relations@sutorcn.com

    Third Fiscal Quarter 2009 Financial Highlights:
   --  Total revenues were US$76.5 million, a decrease of 22.0 % over the
       third fiscal quarter of 2008.
   --  Gross margin was 8.6% for the third fiscal quarter of 2009, compared to
       12.1% for the third quarter of fiscal 2008.
   --  Net income was US$3.1 million, a decrease of 60.7 % over the third
       fiscal quarter of 2008.
   --  Fully-diluted earnings per common share for the third fiscal quarter
       2009 was US$0.08, compared to US$0.21 for the third quarter of fiscal
       2008.

Ms. Lifang Chen, Chairperson and CEO of Sutor said, 'Like many companies in our industry, we are affected by the current global economic downtown. Despite the fact that we continued to face challenges during our third fiscal quarter, we nonetheless realized profits in the quarter while many companies in the steel industry suffered losses. Compared to the second fiscal quarter of 2009, our revenue increased by 8.0% in the third fiscal quarter, which we view as a positive sign and as validation of our development strategy and that our reaction to the volatile economic crisis has been swift and effective. We anticipate that we will continue to grow by taking advantage of a long-awaited resurgence in manufacturing and industrial development and activity and favorable economic results from the implementation of PRC government's active stimulus policies during the coming quarters.'

Third Fiscal Quarter 2009 Financial Results:

Revenues. Revenues were US$76.5 million in the third quarter of fiscal 2009, compared to US$98.1 million for the third quarter of fiscal 2008, representing a decrease of 22.0%. The decrease was mainly attributable to the global economic slowdown which led to a softening of customer demand and the attendant decline of per unit sale price of our products.

Total Operating Expenses. Our total operating expenses increased to US$1.9 million in the third fiscal quarter of 2009, compared to US$1.6 million in the third fiscal quarter of 2008. This increase mainly caused by the large portion of smaller orders we received in the third fiscal quarter of 2009 as compared to large orders received in same period of last year, which led to less efficient and predictable operations and higher production costs. Additionally, we shouldered more transportation costs for our clients in this quarter as compared to the same quarter last year.

Gross Profit. Gross profit was US$6.6 million for the third quarter of fiscal 2009, a decrease of 44.5% from US$11.8 million for the same period in fiscal 2008. Gross margin decreased to 8.6% in the third quarter of fiscal 2009 from 12.1 % for the same period in fiscal 2008. The decreased margins mainly resulted from heightened pricing pressure which caused us to lower our per unit prices and from large portion of smaller orders we received in the third quarter of 2009 as compared to those received in the same period in fiscal 2008, which led to less efficient and predictable operations and higher costs of production and, ultimately, a compression in our gross margin.

Income from Operations. Income from operations for the third quarter of fiscal 2009 was US$4.6 million, a decrease of approximately 54.4% from US$10.2 million for the third quarter of fiscal 2008.

Income before Tax and Minority Interests. As a result of the foregoing, our income before tax and minority interests decreased by 58.3% to US$3.6 million for the third quarter of fiscal 2009 from US$8.7 million in the third quarter of fiscal 2008.

Net Income. Net income was US$3.1 million in the third quarter of fiscal 2009, a decrease of 60.7% from US$7.8 million for third quarter of fiscal 2008. The lower net income in our third fiscal quarter resulted primarily from decrease in revenue and per unit sale price of our products.

Financial Condition:

As of March 31, 2009, the Company had cash and cash equivalents of US$25.7 million, plus $58.0 million in restricted cash and working capital of US$79.6 million. Stockholders' equity increased 26.1% to US$150.9 million, compared to US$119.6 million as of March 31, 2008.

Functional Currency and Translating Press Release

The functional currency of the Company is the Chinese Yuan Renminbi ('RMB'); however, the accompanying financial information are expressed in United States Dollars. The accompanying consolidated balance sheets have been translated into U.S. Dollars at the exchange rates prevailing at each balance sheet date. The accompanying consolidated statements of operations and cash flows have been translated using the weighted-average exchange rates prevailing during the periods of each statement. Each transaction in the Company's equity securities has been recorded at the exchange rate existing at the time of the transaction.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid- pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com .

Forward-Looking Statements

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for our steel finishing fabrication products, our expectations regarding the continued growth of the steel market, as well as all assumptions, expectations, predictions, intentions or beliefs about our relative strength and about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties, including developments in the world economy and in our industry, could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the 'Risk Factors' section of our Annual Report on Form 10-K for the year ended June 30, 2008, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov . The words 'believe,' 'expect,' 'anticipate,' 'project,' 'targets,' 'optimistic,' 'intend,' 'aim,' 'will' or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

    For more information, please contact:

     Company Contact (PRC):
     Mr. Jason. Wang
     Tel:   +86-512-52680988
     Email: investor_relations@sutorcn.com



                 SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                                  March 31,          June 30,
                                                      2009              2008
                                                (unaudited)
    ASSETS
    Current Assets:
    Cash and cash equivalents                  $25,716,041       $11,806,101
    Restricted cash                             57,993,456        59,489,508
    Trade accounts receivable, net of
     allowance for doubtful accounts of
     $69,038 and $70,653, respectively           9,712,637         6,268,858

    Other receivables                              430,733           100,271
    Accounts receivable, related parties        42,623,415        76,118,544
    Advances to suppliers, net of
     allowance for doubtful accounts of
     $1,480,495 and $1,472,828,
     respectively                               28,638,328        28,035,815

    Inventory                                   46,062,853        51,315,521
    Notes receivable                                    --           130,970
    Deferred taxes                                 259,301           288,976
    Total Current Assets                       211,436,764       233,554,564
    Property and Equipment, net of
     accumulated depreciation of
     $15,915,429 and $12,019,445,
     respectively                               71,106,424        59,736,612

    Intangible Assets, net of accumulated
     amortization of $328,128 and
     $285,888, respectively                      3,064,104         3,238,931

    TOTAL ASSETS                              $285,607,292      $296,530,107

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
    Accounts payable                           $10,414,311        $6,003,898
    Advances from customers                      9,029,765        16,871,618
    Other payables and accrued expenses          4,077,259         3,265,860
    Short-term notes payable                    95,974,056       130,504,380
    Short-term notes payable - Principal
     Shareholder                                12,347,011                --
    Total Current Liabilities                  131,842,402       156,645,756

    Long-Term Liabilities:
    Long-Term Notes Payable - Principal
     Shareholder                                        --         7,099,998
    Long-Term Notes Payable                      2,859,996                --
    Total Liabilities                          134,702,398       163,745,754

    Minority Interest in Net Assets of
     Subsidiary                                         --            34,697
    Stockholders' Equity
    Undesignated preferred stock - $0.001
     par value; 1,000,000 shares
     authorized; no shares outstanding                  --                --

    Common stock - $0.001 par value;
     500,000,000 shares authorized;
     37,955,602 shares outstanding                  37,955            37,955
    Additional paid-in capital                  37,170,164        37,170,164
    Statutory reserves                          12,586,995        12,586,995
    Retained earnings                           83,385,108        65,772,975
    Accumulated other comprehensive
     income                                     17,724,672        17,181,567
    Total Stockholders' Equity                 150,904,894       132,749,656
    TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                   $285,607,292      $296,530,107



                 SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED STATEMENTS OF
                       OPERATIONS AND COMPREHENSIVE INCOME
                                   (unaudited)

                      Three Months Ended March 31,  Nine Months Ended March 31,
                            2009         2008          2009          2008
    Revenue:
    Revenue              $27,381,648  $45,258,150  $145,336,851  $168,865,930
    Revenue from related
     parties              49,075,289   52,843,085   103,734,052   143,617,418
                          76,456,937   98,101,235   249,070,903   312,483,348
    Cost of Revenue
    Cost of revenue       41,167,360   53,443,350   110,424,589   195,381,301
    Purchases from
     related parties      28,727,887   32,840,446   110,446,903    82,488,474
                          69,895,247   86,283,796   220,871,492   277,869,775
    Gross Profit           6,561,690   11,817,439    28,199,411    34,613,573

    Operating Expenses:
    Selling expense          493,253      550,291     1,655,649     2,085,784
    General and
     administrative
     expense               1,425,285    1,087,563     3,432,746     5,368,660
    Total Operating
     Expenses              1,918,538    1,637,854     5,088,395     7,454,444
    Income from
     Operations            4,643,152   10,179,585    23,111,016    27,159,129

    Other Income
     (Expense):
    Interest income          277,624      309,486     1,239,611       663,254
    Other income                  --       90,333            --       128,918
    Interest expense      (1,294,486)  (1,764,273)   (4,576,544)   (3,936,756)
    Other expense                 --     (113,008)           --      (343,262)
    Total Other Income
     (Expense)            (1,016,862)  (1,477,462)   (3,336,933)   (3,487,846)

    Income before Taxes
     and Minority
     Interest              3,626,290    8,702,123    19,774,083    23,671,283

    Provision for income
     taxes                  (561,592)    (903,606)   (2,161,949)   (2,568,011)
    Minority interest in
     loss of
     consolidated
     subsidiary                   --       (6,259)           --        (3,232)

    Net Income            $3,064,698   $7,792,258   $17,612,134   $21,100,040

    Basic and Diluted
     Earnings per Common
     Share                     $0.08        $0.21         $0.46         $0.56

    Net Income            $3,064,698   $7,792,258   $17,612,134   $21,100,040
    Foreign currency
     translation
     adjustment              197,361    4,972,227       543,105     9,173,606
    Comprehensive Income  $3,262,059  $12,764,485   $18,155,239   $30,273,646



                 SUTOR TECHNOLOGY GROUP LIMITED AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
                                           For the Nine Months Ended March 31,
                                                2009               2008
    Cash Flows from Operating Activities:
    Net income                                  $17,612,134       $21,100,040
    Adjustments to reconcile net income
     to net cash provided by operating
     activities
    Depreciation and amortization                 4,161,563         2,703,957
    Minority interest in loss of
     consolidated subsidiary                             --             3,232
    Deferred income taxes                            30,757                --
    Gain on sale of assets                         (161,410)           (2,722)
    Changes in current assets and
     liabilities:
    Trade accounts receivable, net               (3,467,616)       14,187,846
    Other receivables, net                         (329,891)          (20,977)
    Advances to suppliers                          (544,163)        6,746,811
    Inventory                                     5,440,752       (28,808,894)
    Accounts payable                              4,488,304         3,006,624
    Advances from customers                      (7,900,263)        2,375,369
    Other payables and accrued expenses             875,602          (177,945)
    Related party receivables or payables        34,111,105        (9,373,474)
    Net Cash Provided by Operating
     Activities                                  54,316,874        11,739,867

    Cash Flows from Investing Activities:
    Collection of notes receivable                  116,772           203,059
    Changes in notes receivable - related
     parties                                        973,151                --
    Purchase of property and equipment,
     net of value added tax refunds
     received                                   (16,249,207)       (6,469,417)
    Proceeds from sale of assets                    782,719            10,139
    Net change in restricted cash                 1,722,391       (13,152,963)
    Net Cash Used in Investing Activities       (12,654,174)      (19,409,182)

    Cash Flows from Financing Activities:
    Proceeds from issuance of notes
     payable                                    122,230,308        66,032,525
    Payments on notes payable                  (155,277,962)      (67,666,600)
    Proceeds from issuance of notes
     payable - Principal Shareholder              5,247,013         7,099,998
    Payment on short-term loans - related
     party                                               --        (2,211,931)
    Net Cash (Used in) Provided by
     Financing Activities                       (27,800,641)        3,253,992

    Effect of Exchange Rate Changes on
     Cash                                            47,881           477,483

    Net Change in Cash                           13,909,940        (3,937,840)
    Cash and Cash Equivalents at
     Beginning of Period                         11,806,101         8,832,942
    Cash and Cash Equivalents at End of
     Period                                     $25,716,041        $4,895,102

    Supplemental Cash Flow Information
    Cash paid during the period for
     interest                                    $4,576,544        $3,936,756
    Cash paid during the period for taxes         2,357,109         2,715,920

SOURCE Sutor Technology Group Limited

Source: PR Newswire (May 14, 2009 - 8:39 PM EDT)

Following the earnings announcement, Sutor senior management will host a conference call at 9:00 am (U.S. Eastern) on Friday, 15 May 2009 / 9:00 pm (Beijing/Hong Kong) to discuss its third quarter fiscal year 2009 financial results and recent business activity. The conference call may be accessed by calling:

                            Toll Free                Toll
    United States           +1-877-847-0047
    China                   +800-876-5011
    Hong Kong                                        +852 3006 8101

    The pass code for the conference call is SUTR.

All related materials such as PowerPoint, Script could be downloaded by investors from the website of Sutor at http://www.sutorcn.com .

A telephone replay will be available shortly after the call on the investor relations page of Sutor's website at http://www.sutorcn.com .

About Sutor Technology Group Limited

Sutor is one of the leading private manufacturers of fine finished steel products used by steel fabricators and other applications. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into fine finished steel products, including galvanizing, acid-pickeling, cold-rolling, and pre-painting. Sutor has been listed on NASDAQ since February 11 2008 under the symbol "SUTR". More information can be found at http://www.sutorcn.com .

    For more information, please contact:

    Company Contact (PRC):
     Mr. Jason. Wang
     Tel:   +86-512-5268-0988
     Email: investor_relations@sutorcn.com

DONGBANG TOWN, China, Feb. 20 -- Sutor Technology Group Limited (the 'Company' or 'Sutor') (Nasdaq: SUTR), a leading provider of steel finishing fabrication products in China, established its Shanghai Office on February 12, 2009. The new office is located at 6th floor of Anderson plaza, No.1211 Mudanjiang Road, Baoshan District, Shanghai, China 200940, an area that holds a significant position in the Chinese steel market.

Ms. Lifang Chen, Chairlady & CEO of Sutor, Mr. Xun Zhang, CTO of Sutor, Mr. Xiao Sun, Vice President of Sutor, Mr. Xiaozhe Gu, Marketing Director of Sutor, agents and partners of Sutor from East China District attended the celebration banquet.

Mr. Gu, the Marketing Director of Sutor said during the banquet: 'Sutor keeps on developing its marketing and service networks. This new office means that Sutor is getting closer to her customers in East China.

With this new office, Sutor will be developing her marketing strategies, offering more customer-oriented services and growing market share step by step.

About Sutor Technology Group Limited

Sutor (Nasdaq: SUTR) is one of the leading private manufacturers of steel finishing fabrication products in China. Sutor utilizes a variety of processes and technological methodologies to convert steel manufactured by third parties into steel finishing fabrication products, including hot-dipped galvanized steel, pre-painted galvanized steel, acid-pickled steel, and cold-rolled steel. To learn more about the Company, please visit http://www.sutorcn.com .

    For more information, please contact:

    Company Contact (PRC):
     Mr. Jason. Wang
     Tel:   +86-512-5268-0988
     Email: investor_relations@sutorcn.com