Gross Margin Improves by Over 300 Basis Points

Record Net Income of $1.7 Million for the Fiscal Third Quarter of 2008, Representing a 112% Increase Over the Fiscal Third Quarter of 2007

NEW YORK and BEIJING, Aug. 13 /PRNewswire-FirstCall/ -- China Advanced Construction Materials Group, Inc. ('China ACM') (OTC Bulletin Board: CADC) today announced financial results for its now wholly-owned subsidiary, Xin Ao Construction Materials, Inc. ('China ACM'), and provided a business update for the three and nine months ended March 31, 2008. As previously announced, Xin Ao Construction Materials, Inc. completed a reverse merger with TJS Wood Flooring, Inc., effective April 29, 2008, and changed its name to China Advanced Construction Materials Group, Inc. on April 30, 2008.

Mr. Xianfu Han, Chairman and Chief Executive Officer, stated, 'We are quite pleased with the accelerating growth of China ACM, as evidenced by our revenue increase of 56% for the three months ended March 31, 2008, as compared to the same period last year. At the same time, we generated more than a 300 basis point improvement in our gross margin and over 480 basis point increase in our operating margin as we benefit from greater operating leverage in the business. This improvement is reflected in our highest quarter of net income to-date, which expanded by 112% to over $1.7 million for the fiscal third quarter. As of March 31, 2008, we had accumulated approximately $3.8 million of cash and over $8.7 million of working capital. Our strong cash flow from operations this quarter provides us a solid footing to execute our strategy and further accelerate our growth.'

Mr. Han continued, 'We remain extremely optimistic about the near-term and longer-term outlook for the business as we continue to benefit from our leading market position in China. China ACM has maintained strong revenue growth as a direct result of the major infrastructure expansion and increasing demand for ready-mix concrete in China. Our strategic relationships with the government as well as with other major construction, architectural, and engineering firms, have resulted in us taking part in some of Beijing's largest and most prestigious projects. They include five of Business Week's '10 Wonders of the New China,' and over 100 other projects such as inter-city railways, transit stations, bridges, and skyscrapers. Subsequent to the third quarter, we completed a $7.0 million financing which will provide us with additional funds to expand our infrastructure and capacity to support our involvement in several large projects. At the same time, we are increasingly bidding on new contacts and continue to evaluate accretive and complementary acquisition opportunities of existing ready-mix concrete plants in China.'

Revenue for the fiscal third quarter ended March 31, 2008 was $6.8 million, versus $4.4 million for the same period in 2007. Net income for the fiscal third quarter of 2008 was $1.7 million, compared to net income of $815,000 for the same period in fiscal 2007. In addition, the company recognized approximately $644,000 of foreign currency translation adjustment during the fiscal third quarter, compared to $176,000 for the same period last year.

Revenue for the nine months ended March 31, 2008 was $19.8 million, versus $14.4 million for the same period in 2007. Net income for the nine months ended March 31, 2008 was $3.8 million, compared to net income of $2.4 million for the same period in fiscal 2007. In addition, the company recognized approximately $1.5 million of foreign currency translation adjustment during the nine months ended March 31, 2008, compared to $261,000 for the same period last year.

As of August 5, 2008, China ACM had 10,525,000 shares of common stock issued and outstanding.

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.