NEW YORK and BEIJING, Aug. 3 /PRNewswire-FirstCall/ -- China Advanced Construction Materials Group, Inc. ("China ACM") (OTC:CADC) (BULLETIN BOARD: CADC) , a leading provider of ready-mix concrete and related services in China, today announced that it has paid off its $4.4 million short-term loan, which carried an interest rate of 15%. Additionally, the company has significantly reduced its long-term receivables as of June 30, 2009. The company transferred approximately $5.7 million of its receivables as a method of payment for equipment and other asset purchases, transferred $3.5 million of receivables for future lease payments, and factored approximately $4.1 million of additional receivables. The company also announced that on July 28, 2009 it issued approximately 651,000 shares of common stock at $2.30 per share to certain employees and associates of the company, partially in lieu of equity-based compensation, resulting in gross proceeds of approximately $1.5 million. Mr. Xianfu Han, Chairman and Chief Executive Officer, stated, "We continue to generate strong cash flow and reduce our long-term receivables, which has allowed us to pay down our short term loan and significantly enhance our balance sheet. By eliminating the interest payments on our short term loan, we expect to save approximately $600,000 per year. However, it is important to note that as we continue to expand our infrastructure and add capacity, we may utilize either short or long-term debt in order to minimize shareholder dilution. Most of our receivables are derived directly from government entities, which are extremely credible within the People's Republic of China. As a result, we are able to transfer the rights to these receivables as a method of payment for the purchase of equipment and goods at fair market value, as well pre-pay future lease expenses. We also completed a small capital raise among certain employees and associates of the company in China. This allowed us to quickly and cost effectively raise capital to accelerate our expansion, while incentivizing employees and strategic partners that participated. We were quite pleased with the terms of the transaction, which incurred no transaction fees and were negotiated and agreed upon in early July 2009, while the average share price was well below current levels." 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 http://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: Web: http://www.china-acm.com/ DATASOURCE: China Advanced Construction Materials Group, Inc. CONTACT: David Waldman, or Klea Theoharis, both of Crescendo Communications, LLC, +1-212-671-1020, Web Site: http://www.china-acm.com/

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