China ACM Awarded $3.4 Million China High-Speed Rail Contract

Company's Manufacturing Services New Business Pipeline Reaches Record Levels

BEIJING, Jun 23, 2010 (MARKETWIRE via COMTEX) -- China Advanced Construction Materials Group, Inc. /quotes/comstock/15*!cadc/quotes/nls/cadc (CADC 4.04, +0.06, +1.50%) ("China ACM"), a leading provider of ready-mix concrete and related technical services in China, today announced that China Rail Engineering Group has awarded the Company a contract valued at $3.4 million.

China ACM is providing its premium ready-mix concrete (RMC) manufacturing services for a section of the Hangzhou to Ningbo high-speed passenger railway (HSR) in Zhejiang Province. The project, which is contracted by the Company's Manufacturing Services business segment, requires 460,000 cubic meters of its premium RMC and is expected to be completed in the first half of 2011. The Company's rapidly growing Manufacturing Services segment reported gross margins of 59 percent and 48 percent, for the three-month and nine-month period ending March 31, 2010, respectively.

"We're pleased to see strong growth in our backlog of China HSR projects," said Mr. Jeremy Goodwin, President and Chief Financial Officer of China ACM. "We increased our manufacturing services capacity by 33 percent with the addition of four new portable RMC plants during the third fiscal quarter, bringing our total number of portable plants to 16. We have a record volume of HSR contracts in our new business pipeline and, with our new portable plants being brought on line, we will capitalize on these new opportunities."

"As the massive Chinese Railway expansion continues, China ACM is gaining momentum as the go-to firm for the most demanding projects requiring high performance, premium RMC," said Mr. Xianfu Han, China ACM Chairman and Chief Executive Officer. "Our patented, premium RMC, used in HSR and other technically complex projects, merits premium pricing as it carries a 100-year warranty, double the industry average of 50 years."

"The dynamics of the China railway build out should drive sustainable growth for China ACM for many years to come. Analysts report that China's 6,552 km high-speed railway system is the longest in the world, and is expected to double to 13,000 km by 2012. This includes newly built high-speed links and existing track that has been upgraded to accommodate trains running 200-250 km/hour. According to the Ministry of Railways (MOR), railway construction last year created about six million jobs and generated demand for 20 million tons of steel and 120 million tons of cement. Over the next 10 years, the MOR plans to construct an additional 34,000 km of railway track in the country (of which 18,000 km will be HSR), more closely linkMing the Central and Western regions to coastal provinces," Mr. Xianfu Han added.

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