China Advanced Construction Materials Group Awarded $3.3 Million Railway Contract

NEW YORK and BEIJING, June 2  /PRNewswire-FirstCall/ -- China Advanced Construction Materials Group, Inc. ("China ACM") (OTC:CADC) (BULLETIN BOARD: CADC) , a leading provider of ready-mix concrete and related services in China, today announced that it has been awarded a new contract to provide ready-mix concrete for a major railway construction project in China. China ACM will provide the concrete under its new manufacturing services business line, whereby the general contractor supplies the raw materials and China ACM produces the ready-mix concrete. The contract is expected to generate approximately $3.3 million over a two year period.

Mr. Xianfu Han, Chairman and Chief Executive Officer, stated, "We are pleased to have been selected to provide concrete for this major railway project. This single project will require in excess of 400,000 cubic meters of ready-mix concrete, which we will supply through our portable plants. The advantage to these plants is that they can be moved from location to location along the railway line, minimizing the transportation costs. We were selected for this contract based on our competitive pricing, our high quality, and our proven track record. The national railway project represents a major growth opportunity for the company, considering the Chinese government plans to add another 41,000 kilometers of new track over the next 11 years. We are actively bidding on a number of additional railway projects and look forward to announcing similar contract awards in the near future."

About China ACM

China ACM, founded in 2002 and based in Beijing, China, is a leading producer of advanced construction materials for large scale commercial, residential, and infrastructure developments. The company is primarily focused on producing and supplying a wide range of advanced ready-mix concrete materials for highly technical, large scale, and environmental construction projects. The company also aims to develop and produce new and innovative environmentally conscious construction materials.

China ACM provides materials and services through its seven ready-mix concrete plant network covering Beijing metropolitan area. China ACM owns one plant, leases two plants and has technical services and preferred procurement agreements with four other independently-owned plants. China ACM is ISO 9001 (product quality), ISO 14001 (environmental safety), and ISO 18001 (employment environment safety) certified. Additional information about the company is available at http://www.china-acm.com/.

This press release contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive and regulatory conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors. Additional Information regarding risks can be found in the Company's Annual Report on Form 10K and in the Company's recent report on Form 8K filed with the SEC. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this press release.

  Contact:                            On-line Investor Contact:
  Crescendo Communications, LLC       AGORACOM Investor Relations
  David Waldman or Klea Theoharis     http://www.agoracom.com/IR/chinaacm
  Tel: [phone]
  Email: 
  Web: http://www.china-acm.com/

DATASOURCE: China Advanced Construction Materials Group, Inc.



CONTACT:  David Waldman or Klea Theoharis, both of Crescendo

Communications, LLC, [phone], 



Web Site:  http://www.china-acm.com/ 

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