American Metal & Technology, Inc. Reports Second Quarter Financial Results

HEBEI, China, Aug. 12  /PRNewswire-FirstCall/ -- American Metal & Technology, Inc. (OTC:AMGY) (BULLETIN BOARD: AMGY)  ("American Metal," the "Company"), a leading manufacturer in the People's Republic of China engaged in the development, manufacture and sale of high-precision metal casting and metal fabrication products to European and U.S. markets, today announced its financial results for the second quarter ended June 30, 2008.

  Second Quarter 2008 Highlights

  -- Net sales increased 111.0% year-over-year to $5.1 million
  -- Gross profit increased 129.0% year-over-year to $1.8 million
  -- Gross margin improved to 35.0% from 32.2% a year ago
  -- Net income increased 188.2% year-over-year to $1.4 million, or $0.13
     per diluted share


  First Half 2008 Highlights

  -- Net sales increased 123.2% year-over-year to $10.0 million
  -- Gross profit increased 125.6% year-over-year to $3.2 million
  -- Gross margin improved to 32.4% from 32.1% a year ago
  -- Net income increased 176.3% year-over-year to $2.4 million, or $0.23
     per diluted share


  Second Quarter 2008 Results


For the second quarter of 2008, net sales increased 111.0% to $5.1 million from $2.4 million a year ago. The increase resulted from increased fulfillment of customer orders related to greater capacity and higher raw materials costs, which were passed on to customers.

"We continued to make excellent progress in the second quarter, as demand outpaced our production capacity. This allowed us to selectively fill more orders with high gross margins," said Mr. Chen Gao, Chairman and Chief Executive Officer of American Metal. "In the first full quarter in which all 60 of our high-precision lathe machines were installed and operational, we were able to fill additional orders from our existing customers."

Gross profit during the quarter increased 129.0% to $1.8 million from $0.8 million the prior year because of the increased production levels. Gross margin improved to 35.0% from 32.2% in the same quarter a year ago, as the Company produced a greater number of high-margin orders. The mix of cast parts and machining-only orders varies from quarter to quarter, resulting in variations in gross margin but overall increases in gross profit.

Operating expenses for the quarter declined as a percentage of sales to $0.3 million, or 7.4% of  sales, from $0.3 million, or 11.9% of sales, in the second quarter of 2007.

Operating income increased 186.0% to $1.4 million, or 27.6% of sales, from $0.5 million, or 20.4% of sales, a year ago.

In the second quarter of 2008, net income was $1.4 million, or $0.13 per diluted share, an increase of 188.2% from $0.5 million, or $0.06 per diluted share, in the same quarter of 2007. Earnings per share for the second quarter of 2007 have been adjusted for a 1-for-150 reverse stock split, which was effective December 3, 2007.

First Half 2008 Results

Net sales for the first six months of 2008 increased 123.2% to $10.0 million from $4.5 million in 2007. Gross profit was $3.2 million, or 32.4% of sales, up 125.60% from gross profit of $1.4 million, or 32.1% of sales, a year ago. Operating income rose 168.5% to $2.4 million, or 23.7% of sales, from $0.9 million, or 19.7% of sales, in the same period the prior year. Net income for the first six months of 2008 was $2.4 million, or $0.23 per diluted share, an increase of 176.3% from net income of $0.9 million, or $0.11 per diluted share, in 2007. Earnings per share for the first half of 2007 have been adjusted for a 1-for-150 reverse stock split, which was effective December 3, 2007.

Financial Condition

As of June 30, 2008, American Metal had cash and cash equivalents of $6.3 million, working capital of $10.0 million, no long-term debt and shareholders' equity of $15.0 million. During the first six months of 2008, the Company generated $0.8 million in cash from operations, and invested $1.0 million in the purchase of equipment and leasehold improvements.

Business Outlook

For the 2008 fiscal year, the Company continues to expect demand for its products from both new and existing customers to remain strong. Given the favorable results through first half of the fiscal year, the Company is affirming its expectation for full-year 2008 net income in the range of $3.7 million to $4.0 million. Full-year guidance assumes a mix of multiple products at varying price points and increased efficiencies as it gains additional experience with its customer base; an allowance for additional costs associated with listing on a major exchange, increased consulting services and the hiring of a bilingual-Chinese CFO; an allowance for the potential impact on customers' orders of the Beijing Olympics, which began last Friday and will run through August 24; and an allowance for a reduction in overall activity during the fourth quarter because of seasonal shutdowns at some of its major customers.

"The first half of 2008 was especially positive for American Metal, as we experienced very strong increases in revenues, margins and net income because of greatly expanded production capacity and the ability to take on a greater percentage of high-margin orders," Mr. Gao said. "We are optimistic about our progress thus far and our potential for future growth, as the second phase of our planned capacity expansion comes online in January 2009."

Conference Call

The Company will host a conference call at 9:00 a.m. EDT on Tuesday, August 12, 2008, to discuss earnings for the second quarter ended June 30, 2008. To participate in the event by telephone, please dial [phone] five to 10 minutes prior to the start time (to allow time for registration) and reference conference ID 42317703. International callers should dial [phone] and use the same conference ID. The conference call will be broadcast live over the Internet and can be accessed at American Metal's Web site at http://www.ammyusa.com/. Please visit the Web site at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. An audio replay of the conference call will be archived on American Metal's Web site, at http://www.ammyusa.com/, for 90 days. A digital replay of the call will also be available on Tuesday, August 12, at approximately 11:00 a.m. EDT through Tuesday, August 26 at midnight EDT. To listen to the replay, please dial [phone] and enter the conference ID number 42076358. International callers should dial [phone] and enter the same conference ID number.

About American Metal & Technology, Inc.

American Metal & Technology, through its wholly-owned subsidiary American Metal Technology Group ("AMTG"), a Nevada Corporation, and through AMTG's subsidiaries, Beijing Tong Yuan Heng Feng Technology Co., Ltd. and American Metal Technology (Lang Fang) Co., Ltd., is a leading manufacturer of high- precision casting and machined products in the People's Republic of China. The subsidiaries operate in a 53,819-square-foot manufacturing plant. In 2006, AMTG expanded into the design and manufacture of electric circuit boards for home appliances and motion controllers. The Company recently announced facility expansion plans to increase casting product capacity by 50% and enhance the development and manufacturing of its circuit board solutions at its Langfang manufacturing center. To learn more about American Metal & Technology, Inc., please visit the Company's Web site at: http://www.ammyusa.com/.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain of the statements made in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company's actual results to be materially different from the historical results or from any future results expressed or implied by such forward- looking statements. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "intends," "anticipates" or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports filed with the Securities and Exchange Commission.

   Contact:
   CCG Investor Relations
   Mark Collinson, Partner
   Phone: [phone] ext. 117
   E-mail: 
   Web: http://www.ccgir.com/

                       - FINANCIAL TABLES FOLLOW -



            AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES
             (FORMERLY MURRY UNITED DEVELOPMENT CORPORATION)
     CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME
  FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2008 AND 2007
                               (UNAUDITED)

                        Three month periods ended    Six month periods ended
                                   June 30,                  June 30,
                              2008         2007         2008         2007

  Net sales               $5,086,839   $2,410,578   $9,983,353   $4,472,075
  Cost of goods sold      (3,307,693)  (1,633,663)  (6,744,813)  (3,036,457)
  Gross profit             1,779,145      776,915    3,238,540    1,435,618

  Operating expenses
  Selling expenses           (14,459)      (7,423)     (30,717)     (14,258)
  Operating and
   administrative expenses  (360,312)    (278,503)    (841,258)    (540,074)
  Total operating expenses  (374,772)    (285,926)    (871,975)    (554,332)

  Income from operations   1,404,374      490,989    2,366,565      881,285

  Other income (expense)
  Interest income (expense)    1,621          655        7,349        2,082
  Gain on disposal of
   marketable securities       9,196            -       44,847
  Other income (expense)     (12,351)        (347)     (11,310)      (2,418)

  Total other income
   (expense)                  (1,534)         308       40,886         (336)

  Income before provision
   for income taxes and
   minority interest       1,402,840      491,297    2,407,451      880,950
  Provision for income
   taxes                           -        4,638            -        4,638
  Income before minority
   interests               1,402,840      486,659    2,407,451      876,312
  Minority interests            (700)        (287)     (13,285)         132

  Net income               1,403,540      486,946    2,420,736      876,179

  Other comprehensive income
  Unrealized loss from
   available securities      (11,733)                  (77,923)
  Foreign currency
  translation adjustment     353,051      101,079      900,417      192,372
  Comprehensive income    $1,744,859     $588,025   $3,243,231    1,068,551
  Basic weighted average
  shares outstanding      10,402,687    8,432,323   10,402,687    8,041,191
  Basic net earnings
   per share                   $0.13        $0.06        $0.23        $0.11
  Diluted weighted average
   shares outstanding     10,402,687    8,459,572   10,402,687    8,077,769
  Diluted net earnings
   per share                   $0.13        $0.06        $0.23        $0.11



            AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES
             (FORMERLY MURRY UNITED DEVELOPMENT CORPORATION)
                        CONSOLIDATED BALANCE SHEET
                           AS OF JUNE 30, 2008
                               (UNAUDITED)

                                                  June 30,     December 31,
                                                    2008           2007
                                                                (AUDITED)
                                 ASSETS
  Current Assets
  Cash and cash equivalents                     $6,260,629     $6,037,193
  Accounts receivable - net                      2,605,028      1,332,664
  Notes receivable                                  58,317
  Investment in marketable securities              109,939         93,196
  Other receivables                                 51,433        134,275
  Advances to suppliers                          2,072,273        974,799
  Inventories                                      588,542        547,579

  Total Current Assets                          11,746,160      9,119,706

  Property, Plant And Equipment, net             4,470,851      3,020,972

  Construction in Progress                         114,295        377,240

  Intangible Assets, net                           707,139        692,167

  Total Assets                                 $17,038,446    $13,210,085

                  LIABILITIES AND SHAREHOLDERS' EQUITY

  Current Liabilities
  Accounts payable                              $1,200,330       $743,070
  Accrued liabilities and other payables            96,041         75,765
  Advance payments                                                      -
  Amount due to related parties                    424,069        333,670
  Unearned revenue                                  13,869         12,938

  Total Current Liabilities                      1,734,310      1,165,443

  Minority Interests                               324,006        337,291

  Commitments                                            -              -

  Shareholders' Equity
  Common stocks; $0.0001 par value,
   30,000,000 shares authorized,
   10,402,687 shares issued and
   outstanding                                       1,040          1,041
  Additional paid in capital                     7,385,994      5,039,217
  Deferred expense-warrants                        (71,248)
  Statutory reserve                              1,187,716        912,019
  Accumulated other comprehensive income         1,816,586        994,092
  Retained earnings                              4,660,041      4,760,982

  Total Stockholders' Equity                    14,980,131     11,707,351

  Total Liabilities and
   Shareholders' Equity                        $17,038,446    $13,210,085



            AMERICAN METAL & TECHNOLOGY, INC. AND SUBSIDIARIES
             (FORMERLY MURRY UNITED DEVELOPMENT CORPORATION)
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
          FOR THE SIX MONTH PERIODS ENDED JUNE 30, 2008 AND 2007
                               (UNAUDITED)

                                                        2008          2007
  Cash flows from operating activities:
    Net Income                                       $2,420,736    $876,179
    Adjustments to reconcile net income to
     net cash provided by operating activities:
      Minority interest                                 (13,285)        132
      Issuance of warrants for services                  29,548           -
      Gain on disposal of marketable securities         (44,847)          -
      Bad debt expenses                                 (62,139)          -
      Depreciation and amortization                     175,781     116,446
      (Increase)/decrease in assets:
        Accounts receivable                          (1,092,336)   (712,149)
        Note receivable                                       -     (74,555)
        Other receivables                               169,392     (42,244)
        Inventory                                        (6,023)    (85,121)
        Advance to suppliers                         (1,006,569)    537,737
        Prepaid expenses                                      -     139,282
      Increase/(decrease) in liabilities:
        Accounts payable                                398,592     103,889
        Other payable and accrued expenses              (13,857)     (4,650)
        Unearned revenue                                    107       1,138

  Net Cash Provided By (Used In) Operating Activities   955,101     856,085

  Cash flows from investing activities:
    Additions to construction in progress               (73,811)
    Purchase of equipment and leasehold
     improvements                                    (1,017,774)   (100,628)

  Net Cash Used in Investing Activities              (1,091,585)   (100,628)

  Cash flows from financing activities:
    Proceeds from advance payments                            -     277,806
    Purchase of marketable securities                   (42,728)          -
    Proceeds from loans                                  25,000      28,865

  Net Cash Provided By Financing Activities             (17,728)    306,671

  Net Increase in Cash and Cash Equivalents            (154,212)  1,062,127

  Effects of Exchange Rate Change in Cash               377,648     106,617

  Cash and Cash Equivalents-Beginning Balance         6,037,193     787,444

  Cash and Cash Equivalents-Ending Balance            6,260,629   1,956,188

  Supplement disclosure of cash flow information:
    Income taxes paid                                        $-   $4,638.00
    Interest expenses paid                                   $-     $841.00
    Non Cash Transaction:
    Shares Due To Reorganization                                     27,416


DATASOURCE: American Metal & Technology, Inc.



CONTACT:  Mark Collinson, Partner, CCG Investor Relations,

[phone], ext. 117, , for American Metal &

Technology, Inc.



Web site:  http://www.ammyusa.com/ 

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