October 28, 2010 07:55 ET

China ACM Secures $10.5 Million in Debt Financing

BEIJING--(Marketwire - October 28, 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 it has secured $10.5 million in debt financing.

The Company secured a loan for $9.0 million (RMB 60 million) from Beijing Branch of Shanghai Pudong Development Bank (SPD Bank) (Shanghai SE: 600000) which carries a fixed interest rate of 5.841% for a term of one year. It was issued September 30.

Separately, on August 18 the Company secured a $1.5 million (RMB 10 million) loan from the Beijing-based Hua Xia Bank (Shanghai SE: 600015) that carries an interest rate of 5.841% per annum, due August 18, 2011.

China ACM plans to use loan proceeds for working capital and raw material purchases. The capital infusions will be recorded on the FY 2011 first quarter balance sheet.

"Securing over $10 million in low-interest debt financing enables China ACM to continue to capitalize on growing opportunities in China infrastructure," said Jeremy Goodwin, China ACM President and Chief Financial Officer. "As is customary practice for corporate loans of this nature in China, we anticipate renewing these loans annually following annual anniversary payback and renewal. Combined with growing cash flow and a strong balance sheet, we are well positioned for accelerated growth and financial performance."

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.