Zst Digital Networks (PINK:ZSTN)

ZHENGZHOU, China, April 19, 2012 /PRNewswire-Asia-FirstCall/ -- ZST Digital Networks, Inc. ("ZST" or the "Company"), a major developer, manufacturer and supplier of digital and optical network equipment to cable system operators and provider of GPS tracking devices and support services for transport-related enterprises in China, today issued an update to investors on recent developments at the Company. As previously announced, ZST Digital and BDO China Dahua, CPA Co. Ltd. ("BDO China"), the Company's former auditor, had a disagreement over an audit procedure during the fiscal year ended December 31, 2011. Despite its best efforts to cooperate in full with the auditor, the Company was not able to reach a consensus with BDO China. As a result, BDO China effectively resigned as the company's auditor on March 26th, 2012, and the Company was unable to submit its annual report for the year ended December 31, 2011 on schedule. The Company regrets the outcome of this situation.

Mr. Zhong Bo, the Company's Chairman and Chief Executive Officer said, "I would like to express my sincere gratitude for your continued support during this challenging period. Since the company was founded, we have delivered steady and profitable growth, supported by favorable local government policies, and we have run our business in an ethical manner with a focus on transparency and disclosure. All of these factors have helped us to not only win the support of the local government but the trust and appreciation of our customers. We have built a solid foundation and our business remains fundamentally sound. We firmly believe that the recent challenges we have faced are temporary in nature, and we have confidence in the continued leadership of our Board of Directors and management team.

"As a first step to bring the Company back in compliance with our financial reporting obligations, we are seeking to hire a reputable independent registered accounting firm. We again thank you for your continued support, and we will continue to work tirelessly for the benefit of our shareholders, customers and employees."

ZHENGZHOU, China, May 11, 2011 /PRNewswire-Asia-FirstCall/ -- ZST Digital Networks, Inc. announces that it has posted to its website a letter from Yiyang Radio & Television Bureau, one of ZST Digitals cable TV related equipment segment customers. The full text of the letter (translated to English) and a scanned copy of the original letter can be accessed on the company's website at www.zstdigital.com/english.  

Mr. Zhong Bo, Chairman and Chief Executive Officer of ZST, commented, "As we look forward into 2011 and focus our attention on the continued growth of our business, I would like to thank our customers who have demonstrated their support for ZST Digital over the years. We have built close relationships with many of our customers, who continue to engage ZST Digital as a result of our high quality products, consistent customer service and technical expertise. I would like to specifically thank Yiyang Radio & Television Bureau, one of our cable TV related customers, which has publicly declared its support of ZST Digital.  We have posted the letter of declaration from this customer on our website, and we welcome our shareholders to visit the website to review the document."

Chairman's Letter

April 22, 2011

Dear Shareholders,

I am writing to address shareholder questions that have emerged following some very targeted negative online media commentary. These accusations are being circulated by individual investors who are short-sellers, which is to say that they benefit financially if our stock price declines. There are no facts to support these accusations and I believe many of our sophisticated institutional investors continue to support us by holding positions in our Company.

ZST Digital Networks is a major developer, manufacturer and supplier of digital and optical network equipment to cable system operators and provider of GPS tracking devices and support services for transport-related enterprises in Henan Province in the People's Republic of China. We are well positioned to take advantage of the tremendous growth opportunities in one of the fastest growing economies in the world. Our year-over-year net income growth for 2010, in financial statements certified by BDO China Li Xin Da Hua CPA Co., Ltd, a BDO Member Firm, was 117%. We look forward to continue to deliver such tangible results for our shareholders, and to focus on strong top and bottom line growth.

I have never sold a single share of ZST Digital Networks in our Company's history because I believe in the long term growth potential for our business, as a number of our initiatives are supported by local government. I am confident in our track record of success, including the continued expansion of our GPS platform. I would like to welcome our investors, current and potential, to visit our headquarters located in Zhengzhou City to learn more about our operations and will continue to provide honest, factual information to our investors and the market as a whole.

I thank you for your continued support and confidence in ZST Digital Networks; we will communicate updates as appropriate and are looking forward to putting this matter behind us in an expeditious manner.

Sincerely,

Zhong Bo

Chairman of the Board of Directors, and Chief Executive Officer

ZST Digital Networks, Inc.