CADC China Advanced Constr Matls Group (MM)

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 it has acquired seven new portable ready-mix concrete (RMC) plants, bringing to 23 its total number of Manufacturing Services portable plants owned.

"Our stated goal had been to add between four and ten new portable plants in Fiscal Year 2011," said Jeremy Goodwin, China ACM President and Chief Financial Officer. "Having already reached our target midpoint of seven, we are increasingly confident of continuing to build the company's higher margin business through a combination of cash flow and debt financing to drive strong growth."

The total cost of the new plants' equipment was $4.6 million net. The low cost reflects repurposing and re-allocation of some previously retired portable plants and batching station equipment held in the Company's inventory. The new plant equipment components were purchased and expensed as equipment deposit pre-payments recorded in FY-10. Accordingly, these plants were largely purchased with free cash flow, not the subsequent, recently announced first fiscal quarter 2011 debt financing proceeds. Four of the seven newly purchased or reconstituted plants will be classified and posted as capital equipment in the first fiscal quarter of 2011, ended September 30, and three in the second quarter, as they achieve trial production.

Following an accelerating pace of new and larger high speed rail (HSR) contracts awarded its Manufacturing Services Segment in recent months, the Company has a strong pipeline of prospective HSR and other business and expects to contract and deploy the new capital equipment in the months ahead.

China ACM reported an average gross margin of 47% in FY 2010 for its rapidly growing Manufacturing Services business, compared with the 20.8 percent Company blended gross margin it recently reported for the 2010 fiscal year ended June 30.

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 engineering 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, Beijing Yintai Building and U.S. and French embassies.

Founded in 2002, Beijing-based China ACM provides its materials and services through its network of fixed ready-mix concrete plants covering the Beijing metropolitan area. It also has technical services and preferred procurement agreements with other independently-owned plants across China. Additionally, the Company owns numerous portable plants deployed in various provinces across China. More information about the Company is available at www.china-acm.com.

Forward-Looking Statements This press release contains statements that are forward-looking in nature, including statements regarding the Company's competitive position and product and service offerings. These statements are based on current expectations on the date of this press release and involve a number of risks and uncertainties, which may cause actual results to differ significantly from such estimates. The risks include, but are not limited to, the degree of market adoption of the Company's product and service offerings; market competition; dependence on strategic partners; and the Company's ability to manage its business effectively in a rapidly evolving market. Certain of these and other risks are set forth in more detail in "Item 1A. Risk Factors" in China ACM's Annual Report on Form 10-K for the fiscal year ended June 30, 2010. China ACM does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise.

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