Mr. Xianfu Han, Chairman and Chief Executive Officer, stated, "China ACM has continued to experience year-over-year growth in revenue and net income as well as rapid margin expansion. In our fiscal third quarter, revenue increased to $9.3 million from $6.8 million during the comparable period last year, with higher margin manufacturing services and technical services contributing to our growth. As a result, gross margins for our fiscal third quarter increased to 41.9% from 26.5%, and our operating margin increased to 33.2% from 20.6% for the same period last year. Net income for the fiscal third quarter was $2.3 million versus $1.3 million during the fiscal third quarter of 2008. We remain on track to achieve net income of at least $9 million for fiscal 2009."

Mr. Han continued, "The Chinese government announced its $586 billion stimulus package in November of 2008, with much of the money allocated toward infrastructure projects, a key focus of China ACM. Among the many infrastructure projects on the Chinese government's agenda is the building of high speed railways through the year 2020 intended to better service the large population of Chinese citizens located outside major cities. This initiative is expected to consume 120 million tons of cement, as the network of track is set to increase by 41,000 kilometers over the next 11 years at a cost of approximately $730 billion. The Chinese government and many of the large general contractors are long-standing customers of China ACM. As a result, our company is now involved in over six such railway projects, with associated revenue of $19.7 million, in and around the Beijing area, the most recent additions being the Guizhou-Guangzhou Railway and the Jin-Qin High Speed Railway. Our investment in portable concrete facilities, combined with our solid reputation, quality products and services and competitive pricing, have placed us in a strong position to win railway projects and also fits our strategic plan of expanding outside the Beijing area. We continue to bid on projects of this type and have already begun benefiting from the Chinese government's stimulus package."

Revenue for the three months ended March 31, 2009 was $9.3 million, as compared to $6.8 million for the three months ended March 31, 2008. Gross profit was $3.9 million for the three months ended March 31, 2009, as compared to $1.8 million for the three months ended March 31, 2008, representing gross margin of approximately 41.9% and 26.5%, respectively. Net income for the three months ended March 31, 2009 increased to $2.3 million, or $0.16 per diluted share, compared to net income of $1.3 million, or $0.15 per diluted share, for the same quarter last year.

As of March 31, 2009, the company had cash of $870,140, restricted cash of $666,954, working capital of $8.0 million, and no long-term debt.

Conference Call

China ACM will also host a conference call at 8:00 a.m. Eastern Time on Friday, May 15, 2009. During the call, Mr. Xianfu Han, Chairman and Chief Executive Officer, Mr. Weili He, Vice Chairman and Chief Operating Officer, and Gene Hsiao, Chief Financial Officer, will discuss the Company's quarterly performance and financial results.

The telephone number for the conference call is (201) 689-8035. A live webcast of the call will also be available on the company's website, http://www.china-acm.com/ or the new China ACM IR Hub at: http://www.agoracom.com/IR/chinaacm. To listen to the live call online, please visit the site at least 10 minutes early to register, download and install any necessary audio software.

The webcast will be archived on the site as well as the China ACM IR Hub, and investors will be able to access an encore recording of the conference call for seven days by calling (201) 612-7415 and entering account #286, ID #323153. The encore recording will be available two hours after the conference call has concluded.

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:   Crescendo Communications, LLC   David Waldman or Klea Theoharis   Tel: (212) 671-1020   Email: ir@china-acm.com   Web: http://www.china-acm.com/     (tables follow)                            CONSOLIDATED BALANCE SHEETS                    AS OF MARCH 31, 2009 AND JUNE 30, 2008                                    ASSETS                                          March 31, 2009  June 30, 2008                                           (Unaudited)      RESTATED    CURRENT ASSETS:         Cash                                $870,140    $1,910,495         Restricted cash                      666,954       913,092         Marketable securities                 58,451        61,767         Accounts receivable, net of          allowance for doubtful accounts          of $357,810          and $224,924 as of March 31,          2009 and June 30, 2008,          respectively                     14,856,208     9,365,486         Inventories                          777,548       237,836         Short term loan receivable         1,465,000      -         Other receivables                  1,008,368       505,968         Prepayment                         3,940,771     3,240,394           Total current assets            23,643,440    16,235,038    PLANT AND EQUIPMENT, net                15,237,656    16,730,220    OTHER ASSETS:         Accounts receivable (non-current),          net of allowance for doubtful accounts          of $664,503 and $411,061 as of March 31,          2009 and June 30, 2008,          respectively                      7,529,760     4,753,006            Total assets                    46,410,856    37,718,264                      LIABILITIES AND SHAREHOLDERS' EQUITY    CURRENT LIABILITIES:         Short term loans                  $4,723,893    $4,271,222         Accounts payable                   5,875,554     6,293,553         Customer deposits                     10,751       165,434         Other payables                       280,182       254,259         Other payables - shareholder         763,634       880,302         Accrued liabilities                  411,168       145,207         Taxes payable                      3,468,297     1,073,237         Interest payable                     155,200       -           Total current liabilities       15,688,679    13,083,214    COMMITMENTS, CONTINGENCIES, AND SUBSEQUENT EVENT    REDEEMABLE PREFERRED STOCK ($0.001    par value, 873,000 and 875,000 shares    issued and outstanding) net of    discount of $717,822 and $1,168,548    at March 31, 2009 and June 30, 2008,    respectively, liquidation preference    of $8.00 per share and accrued    dividends                               6,266,178     5,831,452    SHAREHOLDERS' EQUITY:    Preferred stock $0.001 par value,     1,000,000 shares authorized, 873,000 and     875,000 redeemable preferred shares     issued and outstanding, and classified     above outside shareholders' equity     above, liquidation preference of $8.00     per share and accrued dividends as of     March 31, 2009 and June 30, 2008             -             -   Common Stock, $0.001 par value,    74,000,000 shares authorized, 10,508,000    and 10,525,000 shares issued and    outstanding, as of March 31, 2009 and June    30, 2008, respectively                     10,508        10,525   Paid-in-capital                         12,777,188    12,722,260   Contribution receivable                 (1,210,000)   (1,210,000)   Retained earnings                        8,011,906     3,257,276   Statutory reserves                       2,172,408     1,452,779   Accumulated other comprehensive    income                                  2,693,989     2,598,466   Deferred compensation                          -         (27,708)     Total shareholders' equity            24,455,999    18,803,598          Total liabilities, redeemable          preferred stock, and shareholders'          equity                         $ 46,410,856   $37,718,264              CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME        FOR THE NINE MONTHS AND THREE MONTHS ENDED MARCH 31, 2009 AND 2008                                    (UNAUDITED)                                   Nine months ended     Three months ended                                       March 31,             March 31,                                  2009        2008       2009        2008     REVENUE:         Sales of concrete   $16,382,049 $19,841,164   $6,544,484 $6,790,646         Manufacturing          services             5,301,154        -       1,304,615     -         Technical services    1,471,583        -         431,456     -         Mixer rental          1,992,520        -         995,939     -         Marketing cooperation    94,167        -              32     -          Total revenue       25,241,473  19,841,164    9,276,526  6,790,646    COST OF REVENUE:         Cost of concrete     12,147,067  15,538,513    4,592,863  4,988,211         Manufacturing          Services             1,803,356        -         510,268     -         Technical services      119,742        -          22,059     -         Mixer rental            602,485        -         265,442     -         Marketing cooperation    38,720        -              13     -          Total cost of           revenue            14,711,370  15,538,513    5,390,645  4,988,211    GROSS PROFIT               10,530,103   4,302,651    3,885,881  1,802,435    SELLING, GENERAL AND    ADMINISTRATIVE EXPENSES    2,079,257   1,033,958      809,777    404,692    INCOME FROM OPERATIONS      8,450,846   3,268,693    3,076,104  1,397,743    OTHER (EXPENSE) INCOME, NET         Other subsidy income  1,300,992   1,190,159      470,971    407,434         Non-operating expense,          net                   (201,531)    (36,655)    (118,343)    (9,264)         Interest income           4,777         -            937      -         Interest expense       (640,544)   (215,532)    (194,200)   (67,963)           Total other income,            net                  463,694     937,972      159,365    330,207    INCOME BEFORE PROVISION FOR    INCOME TAXES               8,914,540   4,206,665    3,235,469  1,727,950    PROVISION FOR INCOME TAXES  2,516,707     422,521      941,477    422,521    NET INCOME                  6,397,833   3,784,144    2,293,992  1,305,429    Dividends and accretion on    redeemable preferred stock   923,575         -        305,443    -    Net income available to common    shareholders               5,474,258   3,784,144    1,988,549  1,305,429    RECONCILIATION OF    COMPREHENSIVE INCOME:         Net income            6,397,833   3,784,144    2,293,992  1,305,429         Unrealized (loss) gain          from marketable          securities              (3,316)      5,223       15,901    (18,220)         Foreign currency          translation          adjustment              98,839   1,539,290      (39,340)   644,374    COMPREHENSIVE INCOME       $6,493,356  $5,328,657   $2,270,553 $1,931,583    EARNING PER SHARE:         Basic                     $0.52       $0.43        $0.19      $0.15         Diluted                   $0.46       $0.43        $0.16      $0.15    WEIGHTED AVERAGE NUMBER OF    SHARES:         Basic                10,525,066   8,809,583   10,525,200  8,809,583         Diluted              14,024,081   8,809,583   14,021,832  8,809,583                      CONSOLIDATED STATEMENTS OF CASH FLOWS              FOR THE NINE MONTHS ENDED MARCH 31, 2009 AND 2008                                 (UNAUDITED)                                                      2009          2008   CASH FLOWS FROM OPERATING ACTIVITIES:         Net income                               $6,397,833   $3,784,144         Adjustments to reconcile net income to          net cash (used in) provided by operating          activities:           Depreciation                            1,611,255      815,689           Stock-based compensation expense           66,619       -           Bad debt expense                          383,581        3,136         Changes in operating assets and liabilities           Accounts receivable                   (14,505,340)   7,298,441           Inventories                              (538,551)      32,838           Other receivables                        (998,078)     703,888           Other receivables - related parties        -              (218)           Prepayment                                (83,374)    (328,836)           Accounts payable                        5,365,721   (9,139,259)           Other payables                             25,142      363,910           Accrued liabilities                       265,272      (94,066)           Customer deposits                        (155,310)       -           Taxes payable                           2,389,830      385,422             Net cash provided by operating              activities                             224,600    3,825,089    CASH FLOWS FROM INVESTING ACTIVITIES:         Disbursement on short term loan          (1,464,500)       Purchase of equipment                         (50,423)     (15,665)             Net cash used in investing              activities                          (1,514,923)     (15,665)    CASH FLOWS FINANCING ACTIVITIES:       Principal payments of short term loan      (6,961,984)  (5,679,400)       Proceeds from short term loan               7,398,231    3,404,168       Other payables - shareholders                (117,160)     -       Preferred dividends paid                     (317,649)     -       Restricted cash                               246,138      751,000             Net cash provided by (used in) financing              activities                             247,576   (1,524,232)    EFFECTS OF EXCHANGE RATE CHANGE    IN CASH                                            2,392      125,468    DECREASE (INCREASE) IN CASH                    (1,040,355)   2,410,660    CASH, beginning of period                       1,910,495    1,424,883    CASH, end of period                              $870,140   $3,835,543  

China Advanced Construction Materials Group, Inc.

CONTACT: David Waldman or Klea Theoharis, Crescendo Communications, LLC,+1-212-671-1020, ir@china-acm.com, both for China Advanced ConstructionMaterials Group, Inc.

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

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