China ACM (CADC) Wins Xi’an High-Speed Railway Concrete Service Contract

BEIJING, Jan. 25 /PRNewswire-FirstCall/ — China Advanced Construction Materials Group, Inc. (Nasdaq: CADC), (“China ACM” or the “Company”) a leading provider of ready-mix concrete in China, today announced that the Company has signed a definitive contract to provide its ready-mix concrete service to the high-speed railway project between Xi’an and Ankang, the largest city in southern Shanxi Province.

China ACM will provide technical counseling for the production of 270,000 cubic meters of ready-mix concrete. Equipment for the portable mixers has arrived on site and production will commence in February 2010.  Duration of the project is estimated to be 20 months. Revenues for this contract are an estimated $3 million with an estimated $800,000 net income.

Among the 10 government-certified green concrete producers in China, only China ACM is gaining access to high-speed railway projects. The Company’s proprietary technologies and industrial byproduct recycling lowers cement consumption while providing high-quality, ready-mix concrete exceeding the industry standard for durability with greater salt-water resistance for environmentally friendly infrastructure materials.  The Company is currently involved in 11 on-going high-speed railway projects throughout the country including the highly anticipated high- speed railway from Beijing to Shanghai.

Mr. Xianfu Han, Chairman and Chief Executive Officer of China ACM, commented, “We believe the high-speed railway expansion, which enables the Chinese government’s plan to build out infrastructure in the interior of China, represents a $15 billion addressable market for concrete mixing services alone. ‘Green’ concrete products like ours will have sustainable growth, especially for government-sponsored projects, due to the government’s initiative and support to grow a low-carbon economy. Our track record in high-speed rail in many key locations and the signature architectures we have completed in Beijing, provide endorsements to help China ACM win more contracts in the Chinese high-speed rail market.”

The Company also announced that the preliminary unaudited revenues for the second quarter of fiscal year 2010, which ended on December 31, 2009, approximated $26 million, a 140% increase compared with the $10.8 million in the same quarter last year.

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 six ready-mix concrete plant network covering Beijing metropolitan area. China ACM owns one plant, leases three plants and has technical services and preferred procurement agreements with two 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 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.