NEW YORK and BEIJING, July 28 /PRNewswire-FirstCall/ -- China Advanced Construction Materials Group, Inc. ("China ACM") (OTC Bulletin Board: CADC), a leading provider of ready-mix concrete and related services in China, today announced that it has added five new portable, ready-mix concrete plants. As a result, the company now has 9 portable plants supporting the build-out of China's national railway network. The new plants are located between railway stations near Qinhuangdao, Yongfu, Hangzhou, Liuzhou and Guilin.

Mr. Xianfu Han, Chairman and Chief Executive Officer, stated, "We continue to generate very strong cash flow, which has allowed us to rapidly expand our network of portable plants. Each of these plants are directly tied to contracts we have recently won and will be operating near capacity. The cost for each plant and associated equipment is approximately $3 million. Each plant is capable of generating over $2 million in revenue per year, with very attractive margins and high return on investment. We are very confident in our ability to win additional railway projects in the near future and expect to add more portable plants to support these contracts."

The economic stimulus package passed by China's State Council in November 2008 focuses on infrastructure projects such as new railways, roads, and airports. The country plans to double its investment in railways to about 600 billion yuan (US $87.8 billion) this year according to the Ministry of Railways. Part of the new funds will go to building 5,148 km of new lines, including five passenger-only high-speed lines this year. The ministry also plans to start 70 other new projects this year, which will cost 1.5 trillion yuan (US $219.6 billion) by the time they are finished. By 2012 China is expected to have 110,000 km of rail lines, including 13,000 km of passenger routes, of which, many will be high-speed railways allowing trains to run between 200 and 350 km an hour.

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 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

SOURCE China Advanced Construction Materials Group, Inc.