SOURCE: China ACM

China ACM

June 16, 2010 08:25 ET

China ACM Wins $2.5 Million China High-Speed Rail Contract

BEIJING--(Marketwire - June 16, 2010) -  China Advanced Construction Materials Group, Inc. (NASDAQ: CADC) ("China ACM"), a leading provider of ready-mix concrete and related technical services in China, today announced that China Rail Construction Group awarded the Company a new contract valued at $2.5 million.

China ACM will provide its premium ready-mix concrete (RMC) manufacturing services for a section of the Beijing to Shijiazhuang high-speed passenger railway (HSR). The project, which is contracted by the Company's Manufacturing Services business segment, will require approximately 250,000 cubic meters of its premium RMC.

"High speed rail continues to be a large and rapidly growing part of our business," said Mr. Jeremy Goodwin, President and Chief Financial Officer of China ACM. "Unlike China exports or commercial construction, high speed rail is driven by China's sizable and sustainable commitment to infrastructure investment."

Mr. Xianfu Han, China ACM Chairman and Chief Executive Officer, stated, "China ACM holds a valuable and growing RMC niche for high speed rail and other technically complex, high profile projects. Our patented, high performance concrete blends require the industry's highest level of specialty chemical engineering equipment and expertise -- and also incorporate a substantial percentage of recycled materials to meet increasing environmental standards. China ACM is uniquely positioned to meet the exceptional performance demands of these high-visibility public projects."

About China ACM
China ACM is a leading producer of advanced, certified eco-friendly ready-mix concrete (RMC) and related technical services for large scale, high-speed rail (HSR) and other complex infrastructure projects. Leveraging its proprietary technology and value add services model, the Company has won work on numerous high profile projects including the 30,000 km China HSR expansion, the Olympic Stadium Birds' Nest, Beijing South Railway Station, Beijing International Airport, National Centre for Performing Arts, CCTV Headquarters and U.S. and French embassies.

Founded in 2002, Beijing-based China ACM provides its materials and services through its network of five ready-mix concrete plants covering the Beijing metropolitan area. Of those five plants, it owns one and leases four. It also has technical services and preferred procurement agreements with five other independently-owned plants across China. Additionally, the Company presently owns 16 portable plants deployed in 10 provinces across China. Currently, its total RMC production designed capacity is in excess of 11 million cubic meters annually. Additional information about the Company is available at www.china-acm.com.

Forward Looking Statements
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.

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