Third Quarter Fiscal 2010 Financial Highlights

• Revenues for the third quarter of fiscal year 2010 increased by 79.2% year-over-year to $15.5 million, up from $8.7 million in the third quarter of 2009.

• Net income for the third quarter increased 338.7% year-over-year to $1.3 million, compared to $0.3 million for the third quarter of 2009.

• Gross margin for the third quarter was 22.1% based on gross profit of $3.4 million, compared to a 17.3% margin in the same period last year.

• Operating income and operating margin for the third quarter were $1.6 million and 10.5%, respectively, compared to $0.27 million and 3.1%, respectively, in the third quarter of 2009.

• Earnings per diluted share were $0.05 for the quarter, compared to earnings per diluted share of $0.01 in the same period a year ago.

• The Company continues to project revenues of $53 million and net income of $4 million, or $0.17 per diluted share, for 2010.

About Shiner International, Inc.

Shiner International is engaged in the research and development, manufacture and sale of flexible packaging material. Products include coated packaging film, shrink-wrap film, common packaging film, anti-counterfeit laser holographic film and color-printed packaging materials. The Company's flexible packaging products are used by manufacturers in the food and consumer products industry to preserve texture, flavor, hygiene, and convenience and safety of their products. The Company was founded in 1990 and is headquartered in Haikou, China.

Last Trade: 1.23 52 Week: 1.75 – 0.85 Market Cap: 30.24 Million

3rd Quarter Financial Highlights:

• Revenues of $55.26 million, an increase of 108% from Q3/09
• Net income of $9.27 million, an increase of 125% from Q3/09, fully diluted EPS (Earnings per Share) of $0.28, an increase of 56% from EPS of $0.18 in Q3/09
• Strong balance sheet: $54.4 million in cash without any long term debts
• Record China domestic sales – high margin China domestic sales increased 708% to 42% of revenues compared to Q3/09
• Expanded gross profit margin to 28.7%, compared to 22.1% in Q3/09
• Expanded operating margin to 21.0%, compared to 16.9% in Q3/09
• Expanded net income margin to 16.8%, compared to 15.5% in Q3/09
• Initiated planning for Deer's 2nd production facility, which is located in China's eastern AnHui Province – positioned for significant China domestic customer demand in 2011
• Sees positive impact to earnings from China's currency appreciation and positive growth momentum from the current global economic environment

3rd Quarter Revenues and Net Income:

Q3/2010 revenues were $55.26 million, an increase of approximately 108% from $26.54 million in Q3/2009. Deer attributes the significant increase in organic revenues to 708% year over year quarterly growth in the high margin China domestic markets. In addition, Deer continues to experience strong organic growth from its global markets. Net income for Q3/2010 was approximately $9.27 million, an increase of approximately 125% from Q3/09. Fully diluted EPS was $0.28, compared to $0.18 in Q3/2009.

Management Comments on 3rd Quarter 2010 Financial Results:

Bill He, Deer's Chairman and CEO, commented: "Deer is pleased to report the best 3rd quarter financial results in our corporate history. During this quarter, we executed our China domestic market expansion strategies successfully, which resulted in higher revenue growth as well as higher profit margins. Deer believes that our integrated 'production to market' model and our in-depth local cultural and market knowledge have made Deer one of the most profitable and efficiently operated companies in the small household appliance industry in the world. We capture both manufacturing margins and end user distribution margins. We see positive earnings growth trend to continue well into 2011."

Raises 2010 Earnings Guidance to $29 Million in Net Income, EPS of $0.87:

Based on the current order fulfillment and product shipments to China domestic and global customers, Deer raises its 2010 earnings guidance to approximately $172 million in revenues, approximately $29 million in net income and Earnings per Share (EPS) of $0.87-$0.88. Deer's previous 2010 guidance was $160 million in revenues, $26 million in net income and EPS of $0.76.

Business Outlook for 2011: Targets Minimum 30% Revenues and Earnings Growth in 2011 from the Raised 2010 levels:

Deer anticipates no less than 30% growth in both revenues and net income in 2011 from the raised 2010 levels, mainly due to anticipated continued revenue growth in China's domestic markets. In 2010, Deer significantly expanded its China domestic market distribution footprints, which positions the Company for further market expansion in 2011. In addition, Deer sees better global market conditions in 2011 as the global economy continues to improve, which would benefit Deer's global market sales.

"Deer's strong financial performance in 2010 has set a positive tone for Deer's continued expansion in 2011. Chinese consumer wealth expansion in a favorable environment of high GDP growth and low inflation has created healthy market demand for Deer's small household appliances products, which directly enhance the lifestyles of China's rising middle class. Deer's strong balance sheet and significant cash position also provide ample strategic M&A opportunities in 2011. In addition, Deer plans to significantly increase our production capacity in 2011 through the opening of our second production facility, in order to stay closer to our China domestic customers as well as expanding distribution outlets. Our second factory should be completed in 2011 and it is strategically located in a region that can service more than 300 million people in one of China's most economically developed areas. Deer looks forward to continuing delivering high earnings growth for our shareholders for years to come," commented Mr. He.

Deer is a Direct and Strategic Access to the Vast Chinese Consumer Markets:

China has the world's fastest growing markets for small household appliances. Deer's fully integrated model of aligning rapidly growing branded products, strong cash position, product design, internal low cost manufacturing and quality control, supply chain management and rapidly expanding China domestic market footprints has positioned Deer as a strategic platform for accessing the Chinese consumers. From time to time, Deer is engaged in strategic discussions with global brands on both product collaboration and other strategic initiatives.

About Deer Consumer Products, Inc.

Deer Consumer Products, Inc. (Nasdaq: DEER - News) is a NASDAQ Global Select Market listed U.S. company with its primary operations in China. Deer has a 15-year operating business as well as a strong balance sheet. Operated by Deer's founders and supported by more than 103 patents, trademarks, copyrights and approximately 2,000 employees, Deer is a leading designer, ODM/OEM manufacturer and global marketer of quality small home and kitchen electric appliances. Deer's product lines include blenders, juicers, soy milk makers and a large variety of other home appliances designed to make today's lifestyles simpler and healthier. With more than 100 global clients/branded products such as Black & Decker, Ariete, Disney, Toastmaster, Magic Bullet, Back to Basics, Wal-Mart, and a rapidly expanding China domestic market footprint, Deer has enjoyed triple-digit growth in revenues and earnings in recent years.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company's expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect Deer's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in Deer's filings with the Securities and Exchange Commission.

Third Quarter 2010 Financial Highlights:

• Exceeding guidance, revenue of $61.1 million in 3Q10 vs. $72.1 million in 3Q09, up 17.1% sequentially from $52.2 million in 2Q10:
  • Revenue from branded milk powder products was $40.9 million in 3Q10 vs. $55.9 million in 3Q09, up 16.8% sequentially from $35.0 million in 2Q10;
  • Revenue from raw milk powder was $14.4 million in 3Q10 vs. $9.2 million in 3Q09, up 5.7% sequentially from $13.6 million in 2Q10;
• Gross profit of $27.3 million in 3Q10 vs. $37.0 million in 3Q09, up 47.9% sequentially from $18.5 million in 2Q10;
• Gross margin was 44.7% in 3Q10 vs. 51.3% in 3Q09, up from 35.4% in 2Q10;
• Net income of $3.6 million in 3Q10 vs. net income of $11.1 million in 3Q09, up from net loss of $(20.7) million in 2Q10; and
• EPS per diluted share was $0.16 vs. $0.52 in 3Q09, up from a loss of $(0.92) in 2Q10.

Mr. Leng You Bin, the Company's Chairman and Chief Executive Officer, stated, "We are continuing to make measurable progress with our operations across our sales and marketing to our dairy farms. Our results of $61.1 million in revenue and $3.6 million in net income are excellent indications of our footprint in the Chinese milk powder space. We are continuing to make improvements including strengthening our team through training of existing talent and recruitment and adjusting existing retail sales points to drive greater profitability. We believe that we are well positioned to execute our strategic initiatives to grow sales at existing retail outlets throughout the remainder of the year and capitalize on market opportunities."

The decrease in revenue in the third quarter of 2010 compared to the third quarter of 2009 was primarily attributable to a decrease in sales of milk powder and an increase in sales of raw milk powder, which has a lower gross profit margin, as well as increased competition from new competitors entering into the Company's industry and old competitors aggressively attempting to reclaim market share. The revenue in the third quarter of 2010 increased 17.1% sequentially from $52.2 million in the second quarter of 2010, primarily reflecting the Company's efforts to increase sales of existing retail points and targeted new sales points.

Gross profit was $27.3 million in the third quarter of 2010 compared to $37.0 million in the third quarter of 2009, up 47.9% sequentially from $18.5 million in the second quarter of 2010. Gross margin for the third quarter of 2010 was 44.7%, compared to 51.3% in the third quarter of 2009, up from 35.4% in the second quarter of 2010. Gross profit in the third quarter of 2010 was lower than gross profit in the third quarter of 2009 primarily due to changes in the Company's revenue mix and increased costs of raw milk supply.

Income from continuing operations was $2.0 million in the third quarter of 2010, compared with income from continuing operations of $4.0 million in the third quarter of 2009, up significantly from a loss of $(24.0) million in the second quarter of 2010. Sales and marketing expenses decreased 31.8% to $18.7 million in the third quarter of 2010 from $27.5 million in the third quarter of 2009, and decreased 36.7% compared to $29.6 million in the second quarter of 2010, primarily reflecting a decrease in promotional fees and the Company's efforts to improve the effectiveness of its selling expenses. General and administrative expenses increased 8.4% to $6.1 million in the third quarter of 2010 from $5.7 million in the third quarter of 2009, primarily reflecting increased salary offset in part by a decrease in professional service fees.

The Company recognized other income of $1.4 million during the third quarter of 2010. In the third quarter of 2009, the Company had other income of $5.4 million. The lower other income was primarily attributable to a decrease of government subsidy of approximately $6.1 million from the third quarter of 2009, offset in part by a decrease in interest and finance costs of approximately $1.3 million from the third quarter of 2009.

Net income attributable to the Company for the third quarter of 2010 was $3.6 million, or $0.16 per diluted share, compared to net income attributable to the Company of $11.1 million, or $0.52 per diluted share, in the third quarter in 2009, but improved significantly from net loss attributable to the Company of $(20.6) million, or $(0.92) per diluted share in the second quarter of 2010.

Nine Months Ended September 30, 2010

Revenue decreased 14.2% to $194.8 million in the nine months ended September 30, 2010 from $227.1 million in the same period of 2009. Contributions from milk powder products were approximately $140.7 million, or 72.2%, of sales in the nine months ended September 30, 2010, down 28.0% from $195.5 million, or 86.0% of sales, in the corresponding period in 2009. This decrease is largely due to increased competition from new competitors entering into Chinese dairy industry and old competitors aggressively attempting to reclaim market share following the' melamine crisis. Gross profit decreased 37.0% to $84.2 million in the nine months ended September 30, 2010 from $133.7 million in the same period of 2009. Gross margin for the nine months ended September 30, 2010 was 43.2%, compared to 58.9% in the corresponding period in 2009, primarily attributable to increases in the price for both internally and externally sourced raw materials, and also to a decrease in sales of milk powder and an increase in sales of raw milk powder, which has a lower gross profit margin. Income from continuing operations decreased to a loss of $(19.7) million in the nine months ended September 30, 2010, compared to a profit of $37.8 million in the corresponding period in 2009. Net income from continuing operations for the first nine months of 2010 decreased to a loss of $(11.6) million, or $(0.52) per diluted share, from a profit of $43.2 million, or $2.21 per diluted share, in the prior year period. Net income attributable to the Company for the first nine months of 2010 decreased to a loss of $(11.5) million, or $(0.52) per diluted share, from a profit of $46.6 million, or $2.38 per diluted share in the corresponding period in 2009.

As of September 30, 2010, the Company had cash and cash equivalents of $22.2 million and total current assets of $161.8 million, compared with cash and cash equivalents of $48.2 million and total current assets of $177.7 million as of December 31, 2009.

This decrease was mainly led by the Company's payoff of bank debt facilities more than borrowed of approximately $23.5 million, expenditure on property and equipment related to the construction of Gannan Dairy Phase II production factory facilities and Longjiang production factory facilities of approximately $15.3 million and expenditure on biological assets of the Company's two farms of approximately $9.3 million, which was offset by the cash provided by operating activities of approximately $21.7 million.

As of September 30, 2010, the Company had a working capital deficit, its current liabilities exceeded its current assets by approximately $24.9 million. The Company has taken various actions to conserve cash, procure financing and improve liquidity. Such actions include reducing working capital requirements in operations through improving the Company's sales process, accelerating accounts receivables collection, strengthening control on operating expenditure and renewing short term borrowings.

Financial Guidance

Mr. Jonathan H. Chou, the Company's Chief Financial Officer, stated, "We are pleased to report three month revenue growth of 17.1% compared to the second quarter of 2010. Specifically, sales of our branded milk powder products grew 16.8% to $40.9 million compared to the second quarter of 2010. As we approach the middle of the fourth quarter of 2010, we are confident that we are taking effective measures to continue to improve our operations across all functions. Based on cash and actual purchase orders received this quarter to date, we project our total revenue will be between $54 million to $56 million in the fourth quarter of 2010."

Conference Call Details

The Company will also hold a conference call on November 8, 2010 at 9:00 am Eastern Standard Time to discuss its third quarter results. Listeners may access the call by dialing the following numbers:

The replay will be accessible through November 15, 2010 by dialing the following numbers:

About Feihe International, Inc.

Feihe International, Inc. (NYSE:ADY - News) (formerly known as American Dairy, Inc.), is one of the leading producers and distributors of premium infant formula, milk powder, and soybean, rice and walnut products in the People's Republic of China. Feihe International conducts operations in China through its wholly owned subsidiary, Feihe Dairy, and other subsidiaries. Founded in 1962, Feihe Dairy is headquartered in Beijing, China, and has processing and distribution facilities in Kedong, Qiqihaer, Baiquan, Gannan, Longjiang, Shanxi, and Langfang. Using proprietary processing techniques, Feihe International makes products that are specially formulated for particular ages, dietary needs and health concerns. Feihe International has over 200 company-owned milk collection stations, two dairy farms, seven production facilities with an aggregate milk powder production capacity of approximately 1,250 tons per day and an extensive distribution network that reaches over 90,000 retail outlets throughout China. For more information about Feihe International, Inc., please visit http://ady.feihe.com.

Cautionary Note Regarding Forward-Looking Statements

This document contains forward-looking information about the Company's operating results and business prospects that involve substantial risks and uncertainties. Statements that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. These statements include, but are not limited to, statements about the Company's plans, objectives, expectations, strategies, intentions or other characterizations of future events or circumstances and are generally identified by the words "may," "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "targets," "could," "would," and similar expressions. Because these forward-looking statements are subject to a number of risks and uncertainties, the Company's actual results could differ materially from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2009 and in other reports filed with the United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes no obligation to update any such forward-looking statements.

"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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- Record Gaming Participation Revenue and Continued Strict Cost

Control Drive Positive GAAP Earnings and Cash Flow for the Quarter -

Oct. 27, 2010 (Business Wire) -- Entertainment Gaming Asia Inc. (NYSE Amex: EGT) (“Entertainment Gaming Asia” or “the Company”), formerly known as Elixir Gaming Technologies, Inc., a leading provider of electronic gaming machines on a participation basis to the Pan-Asian gaming industry, today reported operating results for the third quarter ended September 30, 2010 and reviewed recent corporate progress.

Highlights:

• Net income was $725,000 or $0.01 per share for the third quarter of 2010 compared to a net loss of $0.01 per share in the second quarter of 2010 and a net loss of $0.03 per share in the third quarter of 2009.
• Consolidated adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) was $3.0 million for the third quarter of 2010, up from $1.4 million in the second quarter of 2010 and $338,000 in the third quarter of 2009.

• Total net revenue from gaming machines on participation for the third quarter of 2010 was a record $4.1 million, an increase of 16% from the second quarter of 2010 and 123% from the third quarter of 2009, reflecting both a higher average win per unit per day (WUD) and gaming machine installed base.
• Average consolidated WUD for the third quarter of 2010 was $125, an increase of 9% from the second quarter of 2010 and 45% from the third quarter of 2009.
• As of September 30, 2010, total installed gaming machine seats in operation were 1,525 in eight venues, comprised of six venues in the Philippines with a total of 846 seats and two venues in Cambodia with a total of 679 seats.
• Cash selling, general and administrative (SG&A) expense was $1.3 million for the third quarter of 2010, which was below the guidance range of $1.5 to $1.8 million and down 10% from the second quarter of 2010 and 11% from the third quarter of 2009.
• Cash balances of $8.8 million, including $1.0 million held in an escrow account for a potential new casino project in the Indo-China market, as of September 30, 2010, up from $6.4 million as of June 30, 2010 and $4.2 million as of December 31, 2009.

Clarence Chung, Chairman and Chief Executive Officer of Entertainment Gaming Asia, commented, “Our third quarter performance marks a new chapter for Entertainment Gaming Asia with the achievement of positive GAAP earnings. The achievement of this important milestone reflects our successful efforts over the last two years to refocus our operations and dramatically improve our cost structure. With strong contribution from our 670 gaming machine seats in operation at NagaWorld in Cambodia, in the third quarter we more than doubled our adjusted EBITDA on a quarterly sequential basis and have greatly improved our annualized adjusted EBITDA run rate going forward. With solid recurring cash flow contribution from our core gaming participation operations, we believe that we are positioned to execute on our expansion plans and achieve our goal of becoming a leading regional casino owner and operator in select emerging gaming markets in Asia. We are actively pursuing attractive casino projects in our target markets and are in late stage discussions with one particular project.”

Strong Gains in Gaming Participation Revenue

Total net revenue from gaming machines on participation for the third quarter of 2010 was a record $4.1 million, an increase of 16% from the second quarter of 2010 and 123% from the third quarter of 2009, reflecting improved consolidated average WUD and a higher installed gaming machine base.

During the third quarter of 2010, Entertainment Gaming Asia increased its total gaming machine seats in operation by 2% to 1,525 seats in a total of eight venues in operation, comprised of six venues in the Philippines with a total of 846 seats and two venues in Cambodia with a total of 679 seats (including ten gaming machine seats in operation during the soft opening of one venue) as of September 30, 2010. This compares to 1,502 seats in a total of seven venues in operation, comprised of six venues in the Philippines with a total of 878 seats and one venue in Cambodia with a total of 624 seats as of June 30, 2010.

The Company’s machine placements at NagaWorld, the Company’s principal venue in operation in Cambodia, have increased dramatically since its first placements in this venue in January 2009 and have reached approximately 670 seats in operation. In the Philippines, the Company continues to refine and redeploy its gaming assets in order to focus on higher-performing venues.

Consolidated average WUD for the third quarter of 2010 was $125, up 9% from $115 in the second quarter of 2010 and up 45% from $86 in the third quarter of 2009. WUD figures do not include ten gaming machine seats in operation at one venue in Cambodia during the venue’s soft opening period. The increase was driven by improvement in WUD in Cambodia and the continuously rising percentage contribution from the Company’s machine placements at NagaWorld.

Average WUD for the third quarter of 2010 for Cambodia was $219, up 12% from $196 in the second quarter of 2010 and 17% from $187 in the third quarter of 2009. The improvement was driven by our proactive and targeted marketing initiatives, which more than offset the impact of the increasing machine installed base. Average WUD for the third quarter of 2010 for the Philippines was $56, down 5% from $59 in the second quarter of 2010 and up 6% from $53 in the third quarter of 2009. We attribute the sequential quarterly decline primarily to typical seasonal weakness during the typhoon season.

Continued Success in Cost Reduction Initiatives

Entertainment Gaming Asia continued to focus on strict cost containment and made additional progress in reducing costs following the successful implementation of its aggressive cost reduction initiatives during 2009. Cash SG&A expense for the third quarter of 2010 was $1.3 million, which was below the Company’s guidance range of $1.5 to $1.8 million for the quarter and down 10% from the second quarter of 2010 and 11% from the third quarter of 2009. The Company has effected these cost reductions while improving its operational efficiency.

Q3 2010 Financial Review

Entertainment Gaming Asia’s third quarter of 2010 consolidated revenue was $6.6 million compared to $5.1 million in the second quarter of 2010 and $3.6 million for the third quarter of 2009. Revenue from gaming machines on participation was $4.1 million in the third quarter of 2010 compared to revenue of $3.5 million in the second quarter of 2010 and $1.8 million in the third quarter of 2009. The sequential and year-over-year increases in consolidated revenue were driven by growth in all of the Company’s business divisions.

Based on the Company’s solid revenue performance and the successful execution of its cost reduction initiatives, Entertainment Gaming Asia posted positive adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and non-cash charges) for the third quarter of 2010, marking the sixth consecutive quarter of achieving this important milestone since the Company enacted its new business model in September 2007. Third quarter of 2010 adjusted EBITDA was $3.0 million compared to $1.4 million for the second quarter of 2010 and $338,000 for the third quarter of 2009.

Entertainment Gaming Asia reported a net income of $725,000 for the third quarter of 2010, or $0.01 per share, on a weighted average share count of approximately 115.9 million shares compared to a net loss for the second quarter of 2010 of $1.5 million, or $0.01 per share, on a weighted average share count of approximately 115.9 million shares. This compared to a third quarter of 2009 net loss of $3.7 million, or $0.03 per share, on a weighted average share count of approximately 115.0 million shares.

The third quarter increase in net income over the net loss in the third quarter last year was primarily due to: substantial gains in gaming machine participation revenue and gross profit driven by a higher number of operating gaming machines, improving consolidated average WUD, and lower depreciation expense on gaming machines as a result of impairment charges incurred in the fourth quarter of 2009; improvement in non-gaming product revenues and gross profits due to higher sales volumes and resulting improved production efficiencies; substantially reduced operating expenses; and a one-time tax benefit of $320,000 related to the implementation of a new tax structure for its Cambodia operations compared to a tax expense for the third quarter of 2009.

Casino Development Plans

In May 2010, the Company announced its intention to expand its gaming operations to include the ownership and operation of casinos under the Dreamworld brand in emerging gaming markets in Pan Asia with a focus on Indo China. Pursuant to this new growth strategy, the Company was granted a casino license by the Cambodian government and acquired title of over seven acres (30,000 square meters) of land in the Takeo Province of Cambodia strategically located near the Vietnam border upon which to build and operate a casino resort (“Takeo Project). To-date, Entertainment Gaming Asia has assembled a project management team for its casino development operations and has been working on conceptual project designs with architects for the Takeo Project.

The Company continues to actively pursue additional casino development projects in the Indo-China market and is in late stage discussions on a significant new project. While there is no guarantee the Company will successfully conclude these negotiations, given its constrained capital resources, the Company is re-evaluating its project timeline for the Takeo Project in order to divert certain capital to this potential new project, which the Company believes offers greater short- and medium-term return potential. Should an adjustment to the Takeo Project development timeline be required, it would not place the Company’s gaming license or any rights to own and operate a casino in the Takeo province at risk. We intend to provide more information on the Company’s casino development plans at such time as the plans for the new project become more definite.

Q4 2010 Guidance

The Company has the following expectations for its fourth quarter of 2010.

• Adjusted EBITDA consistent with third quarter 2010 levels from existing operations while the Company executes on its strategic casino development growth plans and actively pursues additional projects.
• Cash SG&A expense at the low end of the range of $1.5 to $1.8 million.
• Cash balance of $7 - 8 million as of December 31, 2010, after giving effect to the anticipated payment of approximately $2 million in capital expenditures associated with the Company’s casino development plans.

Entertainment Gaming Asia is hosting a conference call and simultaneous webcast at 8:30 a.m. ET today, October 27, 2010, both of which are open to the general public. The conference call number is 800/909-8315 or 212/231-2939. Questions and answers will be reserved for call-in analysts and investors. Interested parties may also access the live call on the Internet at www.EGT-Group.com. Please allow 15 minutes to register and download and install any necessary software. Following its completion, a replay of the call can be accessed for thirty days on the Internet at www.EGT-Group.com

About Entertainment Gaming Asia Inc.

Entertainment Gaming Asia Inc. (NYSE Amex: EGT), formerly known as Elixir Gaming Technologies, Inc., is a leading provider of electronic gaming machines on a participation basis to the Pan-Asian gaming industry. The Company secures long-term contracts to provide electronic gaming machines and related systems to premier hotels and other well-located gaming venues in Asia. The Company retains ownership of the gaming machines and systems and receives recurring daily fees based on an agreed upon percentage of the net gaming win per machine and provides on-site maintenance. Entertainment Gaming Asia Inc. also is engaged in the development of casinos in Indo China where intends to own and operate casino resorts under the “Dreamworld” brand. For more information please visit www.EGT-Group.com.

Forward Looking Statements

This press release contains forward-looking statements concerning Entertainment Gaming Asia, formerly known as Elixir Gaming Technologies, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those forward-looking statements include statements regarding expectations for the business of Entertainment Gaming Asia, its working capital requirements, future revenue, Adjusted EBITDA, WUD and profitability, the project schedule for its Dreamworld Casino and Resort in Takeo and Entertainment Gaming Asia’s ability to fund the Dreamworld Casino project, and the Company’s ability to secure new casino projects and fund those projects as well. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. Factors that could cause or contribute to differences include, but are not limited to, risks related to the costs incurred by Entertainment Gaming Asia in defending shareholder litigation and the outcome of any judgment or settlement with respect to such litigation, Entertainment Gaming Asia’s inability to place gaming machines at significant levels, whether the gaming machines placed generate the expected amount of net win, Entertainment Gaming Asia’s ability to successfully execute its plans to build and operate Dreamworld Casino and Resort in Takeo and any new casino projects, the ability of Entertainment Gaming Asia to acquire additional capital as and when needed, the ability of Entertainment Gaming Asia to collect revenue and protect its assets and those other risks set forth in Entertainment Gaming Asia’s annual report on Form 10-K for the year ended December 31, 2009 filed with the SEC on March 30, 2010 and subsequently filed quarterly reports on Form 10-Q. Entertainment Gaming Asia cautions readers not to place undue reliance on any forward-looking statements. Entertainment Gaming Asia does not undertake, and specifically disclaims any obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Adjusted EBITDA/(LBITDA)” is earnings/loss before interest, taxes, depreciation, amortization, stock-based compensation, and other non-cash operating income and expenses. Adjusted EBITDA/(LBITDA) is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted EBITDA/(LBITDA) as a measure of the operating performance of its segments and to compare the operating performance of its operations with those of its competitors. The Company also presents Adjusted EBITDA/(LBITDA) because it is used by some investors as a way to measure a company’s ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDA/(LBITDA) as a supplement to financial measures in accordance with generally accepted accounting principles in the United States (“GAAP”). Adjusted EBITDA/(LBITDA) should not be considered as an alternative to operating income as an indicator of the Company’s performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income/(loss), Adjusted EBITDA/(LBITDA) does not include depreciation or interest expense and, therefore, does not reflect current or future capital expenditures or the cost of capital. The Company compensates for these limitations by using Adjusted EBITDA/(LBITDA) as only one of several comparative tools, together with GAAP measurements, to assist in the evaluation of operating performance. Such GAAP measurements include operating income, net income/(loss), cash flows from operations and cash flow data. The Company has significant uses of cash flows, including capital expenditures, interest payments, debt principal repayments, taxes and other non-recurring charges, which are not reflected in Adjusted EBITDA/(LBITDA). Entertainment Gaming Asia’s calculation of Adjusted EBITDA/(LBITDA) may be different from the calculation methods used by other companies and, therefore, comparability may be limited.

Entertainment Gaming Asia Inc.

Traci Mangini, 312-867-0848

tracimangini@EGT-Group.com

The contract was awarded to the Company's Manufacturing Services business segment and is being fulfilled with premium ready-mix concrete (RMC) from a portable plant. China ACM targets gross margins of 40 percent to 60 percent for its rapidly growing Manufacturing Services business, compared with the 20.8 percent Company blended gross margin it recently reported for its 2010 fiscal year ended June 30.

China ACM was awarded the contracts by China Road and Bridge Corporation, a subsidiary of Beijing-based China Communications Construction Company Limited (HongKong:1800 - News), for its premium RMC manufacturing and related engineering services on the Datong-XiAn Special Passenger Line, Section 14 in the Shanxi Province. It will require approximately 400,000 cubic meters of RMC and is valued at $3.5 million.

Contract production and revenue recognition began in the first fiscal quarter of 2011 ended September 30, and is estimated for completion in the second quarter of FY 2012 ending Dec. 31, 2011.

Commenting on the contract, Mr. Xianfu Han, Chairman and Chief Executive Officer of China ACM, said, "Growth in China ACM's Manufacturing Services Segment continues to accelerate as China ACM offers a robust and extremely competitive offering with its patented RMC blends, high degree of operational responsiveness and flexibility as well as our expert chemical and technical engineering services.

"The urbanization and modernization driving the China infrastructure build out continues to grow away from the center of Beijing to more distant Beijing City areas, outlying provinces and emerging new cities with new or expanded airports, subway and rail stations, bridges, HSR and complex commercial and industrial buildings," Mr. Han said. "This plays to China ACM's strength with the portable plant model that we envisioned and began to implement years ago."

"With a vast long term trillion-dollar China infrastructure build out underway, led by a massive 10-year HSR investment, we are seeing an increasing number of excellent opportunities available to our Manufacturing Services business," said Jeremy Goodwin, President and Chief Financial Officer of China ACM. "Accordingly, we are in the process of increasing China ACM Manufacturing Services capacity -- to be funded internally or with debt financing -- with new portable plants and fleet vehicles to meet higher levels of anticipated demand."

China ACM estimates the total addressable market just for HSR RMC at $15 billion over the next 10 years. 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 the end of 2012. This includes newly built high-speed links and existing track that will be upgraded to accommodate trains running 200-250 km/hour. Over the next 10 years, the Ministry of Railways plans to construct an additional 34,000 km of railway track in the country (more than half of which will be HSR), more closely linking the Central and Western regions to coastal provinces.

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.

 
Contact
Financial Profiles
Tricia Ross
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tross@finprofiles.com
Financial Profiles
Moira Conlon
Tel: (310) 478-2700 x11
mconlon@finprofiles.com 

Mr. Yang Liankuan, Gold Horse CEO, explained: "The Tianti Housing Project, a construction project with our construction segment acting as general contractor, will consist of seven residential buildings with a total construction area of 90,606.65 square meters. Officially underway last month, the anticipated completion date is December 2011, with total estimated revenue of $26.4 million and estimated gross profit of $3.4 million.

"Our next project, Shuian Renjia, will be developed by our real estate business in cooperation with our construction company who will act as general contractor, an example of a project under our new integrated business model.

"Shuian Renjia is located at the south part of East Xinhua Street in Hohhot, and will consist of two buildings each with 17 floors and a total of 364 apartments. The total development area will amount to 56,841.2 square meters.

"The Shuian Renjia project is expected to be completed by May 2011 and requires a total investment of 140 million RMB or about $21 million. The successful completion of this project is expected to yield revenues of 220 million RMB or $32.9 million.

"We are proud of the performance of Gold Horse in the past fiscal year, and we believe the Company is on track for an equally good or superior 2011. Western China remains the best location for growth and development in all of China, and Gold Horse is a leader amongst developers in this dynamic region," concluded Mr. Yang.

About Gold Horse International, Inc.

Gold Horse International, Inc., through its wholly owned subsidiaries, Gold Horse International, Inc. (Nevada) and Global Rise International Ltd., controls and operates Inner Mongolia Jin Ma Construction Co., Ltd., Inner Mongolia Jin Ma Hotel Co., Ltd., and Inner Mongolia Jin Ma Real Estate Development Co., Ltd., all based in Hohhot, the regional capital of Inner Mongolia Autonomous Region in China. Jin Ma Construction has been providing construction and general contractor services in Hohhot to both private developers and to the local and regional governments since 1980. Jin Ma Hotel owns, operates and manages the Jin Ma Hotel, a full-service, two-star hotel and restaurant/banquet facility located in Hohhot. Jin Ma Real Estate develops residential and commercial properties in Hohhot. For more information on the Company, visit http://www.goldhorseinternational.com. Information on the Company's Web site or any other Web site does not constitute a portion of this release.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties such as cost overruns, lack of materials, projected earnings not realized and other risks of construction that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its Web site (http://www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

Both contracts were awarded to the Company's Manufacturing Services business segment and are being fulfilled with premium ready-mix concrete (RMC) from two portable plants. It targets gross margins of 40 percent to 60 percent for its rapidly growing Manufacturing Services business, compared with the 20.8 percent Company blended gross margin it recently reported for its 2010 fiscal year ended June 30. In that report, the Company announced Manufacturing Services revenue for the fourth quarter of FY 2010 increased by 193 percent to a record $5.1 million, year over year, with a 45.7 percent gross margin.

China ACM was awarded the contracts by Beijing-based China Railway Construction, Ltd. (HKSE: 1186) (SHSE: 601186) (PINKSHEETS: CWYCF) (PINKSHEETS: CWYCY) to provide its premium RMC manufacturing and related engineering services for the Hangzhou-Changsha Railway Passenger Line.

The first contract is for Section 2 of the Hangzhou-Changsha Passenger Rail project in Zhejiang Province. It is valued at approximately $6.2 million and will require about 700,000 cubic meters of China ACM premium RMC.

The second contract is also for Section 2 of the Hangzhou-Changsha Passenger Rail project in Zhejiang Province. It is valued at approximately $2.2 million and will require about 300,000 cubic meters of China ACM premium RMC.

Production and revenue recognition for both contracts are expected to begin in the first half of Fiscal Year 2011, and are projected to be completed in the first half of FY 2013 ending December 31, 2012.

"On top of our record $10.7 million Nanjing-Anqing HSR contract package in Anhui Province we announced last month, these Hangzhou-to-Changsha HSR contracts demonstrate our ability to win the big wins," said China ACM Chief Operating Officer Weili He. Mr. He also serves as Vice-Chair of the Beijing Concrete Association. "The blending, delivery and application of our patented RMC for high speed rail and other complex architectural projects requires highly specialized chemical engineering expertise. The prime contractors of these projects demand the best product, technical and engineering consulting. We are honored by the confidence placed in China ACM by China Rail Construction and our many other clients."

Commenting on the HSR contracts, Jeremy Goodwin, President and Chief Financial Officer of China ACM, said, "China ACM is confident our accelerating growth in Manufacturing Services will fund substantially increased new HSR business in the year ahead."

"The recent HSR contract wins solidify China ACM's position as a leading subcontractor for projects with the most demanding premium RMC engineering requirements. HSR is a crucial early component of a massive, generational China infrastructure build out that will enable the most dramatic society urbanization and modernization in history," Mr. Goodwin added. "These contracts raise our profile throughout the industry worldwide as a U.S. publicly traded, diversified China infrastructure pure play."

China ACM estimates the total addressable market just for HSR RMC at $15 billion over the next 10 years. 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 the end of 2012. This includes newly built high-speed links and existing track that will be upgraded to accommodate trains running 200-250 km/hour. Over the next 10 years, the Ministry of Railways plans to construct an additional 34,000 km of railway track in the country (more than half of which will be HSR), more closely linking the Central and Western regions to coastal provinces.

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.

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Contact
Financial Profiles
Tricia Ross
(916) 939-7285
tross@finprofiles.com

Financial Profiles
Moira Conlon
Tel: (310) 478-2700 x11

Since June 2010, we have been, through our wholly-owned subsidiary China Merchants Zhangzhou Development Zone Trendar Solar Tech Ltd. ("Trendar Solar"), engaged in manufacturing and sales of crystalline PV modules at China Merchants Zhangzhou Development Zone, located at the south bank of Xiamen Bay. Our products are being exported to both European and U.S. markets. To cater for the increasing market demand and maximize our shareholders' value, we strive to increase our production capacity to 150MW by the end of 2011, and aim to double this amount to a total of 300MW by the end of 2012. In addition to expanding the production lines of Trendar Solar, we also intend to speed up the pace by means of mergers and acquisitions, to accomplish the targets set out in the Expansion Plan.

About China Technology Development Group Corporation (Nasdaq:CTDC - News)

Established in 1995, CTDC has been listed on The U.S. NASDAQ Stock Market since 1996. CTDC is a growing clean energy group in China, which provides solar energy products and solutions. CTDC's major shareholder is China Merchants Group, a state-owned conglomerate in China (http://www.cmhk.com).

"The ThinFilm order is the result of our focus in the pharmaceutical industry where we see the greatest potential for our high-end, high-margin customized cellulose ether products," began Chairman Dianmin Ma of China Ruitai. "As we further concentrate our efforts in the segment, we hope to secure new customers, in addition to a steady flow of reorders for our Rutocel-branded cellulose ethers in China and international markets."

China Ruitai's cellulose ethers cater to a variety of industries in China including the pharmaceutical, packaged food, personal care and cosmetics, and construction industries. Depending on the end product, cellulose ethers are used as coating and binding agent for pharmaceutical drugs, a thickening agent in cosmetics, personal care and foods, a hardening agent for PVC and an adhesive for paints and glues.

As a result of increased demand for the Company's ethyl crystalline ("EC") product line from pharmaceutical customers, the Company has created a dedicated sales department for this sector based in the Company's Feicheng Headquarters in the Shandong province. EC is the Company's highest margin product line and typically sells at 50-plus percent gross margins. Average selling price of China Ruitai's organic, cotton-based cellulose are approximately $12,000 per ton.

About China Ruitai International Holdings Co.

China Ruitai, through its wholly-owned subsidiary, Pacific Capital Group and its majority-owned subsidiary, TaiAn, is engaged in the production, sales, and exportation of deeply processed chemicals, with a primary focus on non- ionic cellulose ether products. Cellulose ether is an organic chemical that dissolves in water and other organic solvents. Due to the surface-active properties of cellulose ether, it acts as a thickener and stabilizer in aqueous solutions, making it a beneficial additive in a wide variety of commercial industries and products, including, but not limited to the pharmaceutical industry, the construction industry, PVC products, food and beverage products, petroleum, and cosmetics. Specific examples of applications in which cellulose ether products are used include: as a stabilizer and thickener in latex paint; in mortar dry mix for building materials; to improve the performance of resin in PVC production; as a membrane reagent, stabilizer, and thickener in pharmaceuticals; and to improve jam, ice cream, toothpaste and lipsticks in the food and cosmetic industries. TaiAn is one of the largest non-ionic cellulose ether producers in China.

Forward-Looking Statements

Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward-looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward-looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward- looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.

    For additional information contact:

    China Ruitai International Holdings Co., Ltd.
    Ms. Crystal Tang, VP of Finance
    1221 Avenue of Americas Suite 4200
    New York, NY 10020.
    Web:   http://www.rutocel.com
    Tel:   +1-212-899-5131
    Email: tmqcrui@gmail.com, crystal@rutocel.com

    HC International, Inc.
    John Mattio, Senior Vice President
    420 Lexington Avenue
    New York, New York
    Web:   http://www.hcinternational.net
    Tel:   +1-203-616-5144
    Email: john.mattio@hcinternational.net

 
--  FY-10 Non-GAAP Adjusted Net Income to common shareholders up 36% or
    $0.95 Diluted EPS
--  Q4-10 Non-GAAP Adjusted Diluted EPS to common shareholders of $0.30
--  Teleconference begins Wednesday at 8 a.m. EDT

China Advanced Construction Materials Group, Inc. (NASDAQ:CADC - News) ("China ACM,"), a leading provider of ready-mix concrete and related technical services in China, today announced its audited financial results for the 2010 fiscal fourth quarter and year ended June 30, 2010. The Company will host a conference call to discuss the results Wednesday, at 8:00 a.m. Eastern, 5:00 a.m. Pacific; details are provided below.

Fiscal Year 2010 Financial Highlights

 
--  Revenue increased 134% year over year to $93.0 million
--  Blended gross margin at 20.8%
--  Non-GAAP EBITDA rose 28.6% YOY to $22.2 million
--  Non-GAAP adjusted net income available to common shareholders increased
    36% YOY to $15.7 million
--  Non-GAAP adjusted fully diluted EPS to common shareholders of $0.95, up
    $0.13 from a year ago
--  Net income available to common shareholders rose 11% YOY to $12.1
    million
--  June 30, 2010 Order Backlog at record $60 million; Pipeline at $33.1
    million
--  $24.3 million in working capital at June 30, 2010

Fourth Quarter FY 2010 Financial Highlights

 
--  Revenue increased 114% year over year to $30.9 million
--  Gross margin at 21.5%
--  Non-GAAP adjusted net income available to common shareholders at $5.4
    million
--  Non-GAAP adjusted fully diluted EPS to common shareholders at $0.30
--  Net income available to common shareholders rose 32% YOY to $7.1
    million

Year-ago comparisons reflect a fourth quarter and fiscal year 2009 that benefitted from the supply/demand imbalance created by Beijing Olympics era construction projects which drove anomalous, higher market prices for concrete.

Management Commentary

Mr. Xianfu Han, Chairman and Chief Executive Officer of China ACM, commented, "Fiscal Year 2010 was an important year of growth and profitability for China ACM as we achieved record revenue and net income.

"We are successfully growing the company by anticipating market trends and customer requirements, building the chemical and engineering services side of the business and staying focused on strong bottom line results. We have also continued to build the company from a financial and operational perspective.

"Key developments of fiscal 2010 include appointing a new, cross-border CFO to lead the company into its next phase of growth. In the second half of the year we raised $10.6 million in an equity offering which -- combined with available cash flow -- will fully fund our growth plans. In addition, we reinforced our independent board of directors with a strategic mix of accomplished, Chinese and American senior corporate executives.

"The outlook for our markets has never been better. The outlook for high speed rail (HSR) in our Manufacturing Services is strong both near and long term, and our Concrete Sales business mix is diversified and rapidly growing. China's near and long term growth outlook remains strong and infrastructure spending on HSR, real estate, schools, government buildings, utilities and other infrastructures projects in China ACM's sweet spot remains robust."

Jeremy Goodwin, president and chief financial officer of China ACM commented, "China ACM posted record results due to strong growth across our business lines, but led by our highest margin, highest growth segments Manufacturing Services and Technical Services. We generated $22.2 million in 2010 EBITDA which provides the means to internally fund the purchase or lease of a large number of portable plants and fleet vehicles as we continue to ramp up the business, particularly in the Manufacturing Services segment which is highly scalable.

"Over 80 percent of China ACM revenue comes from government funded or state owned enterprise (SOE) sources, which are well funded over the long term. None of our business is dependent, directly or indirectly, on any China export market. In addition to HSR, our businesses today spans subways, highways, sewage lines, airports, utilities, school, public and government buildings, residential, commercial and industrial real estate construction and much more for a well diversified mix.

"Earlier this month," Mr. Goodwin added, "we announced a record $10.7 million HSR contract package, which confirms that we can win and manage large-scale projects. We will be bidding more large, long-term projects in 2011. We also recently announced over $12 million in our Concrete Sales business segment, which is spread across approximately 70 different customers and 92 contracts. With this fiscal year report, we begin reporting our full order backlog and new business pipeline for both of our key segments, all of which stand at record levels."

China ACM reported full fiscal year 2010 non-GAAP adjusted net income available to common shareholders increased 36%, year over year, to $15.7 million on $93.0 million in revenue. The non-GAAP adjusted net income available to common shareholders is before non-cash change in fair value of warrants, option and equity-based compensation as well as non-cash accretion discount (but after cash dividends paid) on the Company's 9% redeemable convertible preferred stock issue which matured on June 11, 2010.

FY 2010 Manufacturing Services revenue increased by 122 percent to a record $15.7 million year over year with a 47.2 percent gross margin. Technical Services revenue increased by 154 percent to $4.9 million with a 93.4 percent gross margin. Concrete Sales revenue at our fixed plants in Beijing increased by 151 percent to $70.6 million with a gross margin of 8.4 percent or about double the industry average.

The Company's fiscal year blended gross margin was 20.8 percent, declining from 38.3 percent a year ago as FY 2009 reflected the completion of Beijing Olympics era construction projects contracted under an anomalous supply/demand imbalance that produced far higher concrete prices than normal, the last of which, the Beijing South Railway Station, was completed in the fourth quarter of fiscal 2009.

Since that Olympics era, the concrete industry has experienced significant attrition and ongoing consolidation as the many of the smaller or less experienced businesses that participated in Beijing Olympics era business are marginalized -- creating new opportunity for well positioned companies such as China ACM. The Company's Concrete Sales gross margin increased every quarter, sequentially, in FY 2010.

China ACM fourth quarter fiscal year 2010 reported non-GAAP adjusted net income available to common shareholders of $5.4 million on $30.9 million in revenue. The non-GAAP adjusted net income available to common shareholders is before non-cash change in fair value of warrants, option and equity-based compensation as well as non-cash accretion discount (but after cash dividends paid) on the Company's 9% redeemable convertible preferred stock issue which matured on June 11, 2010.

Fourth quarter fiscal year 2010 Manufacturing Services revenue increased by 193 percent to a record $5.1 million, year over year, with a 45.7 percent gross margin. Technical Services revenue increased by 303 percent to $1.8 million, year over year, with a 94.5 percent gross margin. Concrete Sales revenue at our fixed plants in Beijing increased by 103 percent to $23.8 million, year over year, with a gross margin of 10.35 percent or about double the industry average.

In the fourth quarter, the Manufacturing Services segment increased to 16.6 percent and 35.2% percent of total company revenue and gross profit, respectively. This compares with 12.1 percent and 16.9 percent in the year-ago quarter. Additionally, Technical Services increased to 5.9 percent and 25.9 percent of total company revenue, and gross profit, respectively. This compares with 3.1 percent and 9.1 percent a year ago.

The Company's fourth quarter gross margin was 21.5 percent, which declined from 32.2 percent a year ago, as the year-earlier quarter reflected the completion of the Beijing Olympics era construction projects, and an extraordinary windfall Bad Debt Recovery income credit of $800,000, for the full year's accounts receivable, which was recorded in SG&A.

Chairman and CEO Mr. Xianfu Han concluded, "Increasingly, we are migrating our business toward a specialty, chemical engineering services model that offers healthy gross margins, reflects our core skill set and engineering corporate culture as well as our R&D, intellectual property and patented eco-friendly premium ready mix concrete ("RMC").

"China ACM is well positioned for the future. We nearly doubled our number of portable plants from nine to 16 to meet existing contracts and anticipated demand, and plan to add more portable stations in 2011 and 2012 due to attractive margins and a high return on investment. We finished the year with a diversified record backlog and new business pipeline, an excellent competitive position founded on deep marketplace relationships, enormous addressable markets and high standards of corporate governance."

Backlog

China ACM reported that, on June 30, its fiscal year-end backlog, or bids in house, was $60 million, 82% of which is contracted with Government State Owned Enterprise contractors and 12% contracted with private sector developers. This is comprised of $32 million in contracted unfilled orders for its Concrete Sales segment, and $28 million in contracted unfilled order for its Manufacturing Services segment. Based on its historical experience, the Company's estimated time to convert these contracted orders into recognized revenues averages between six and twelve months for Concrete Services, and 12 to 30 months for Manufacturing Services depending on the scope of the project.

The Company's new business pipeline, or bids outstanding, which is a measure of the value of bids it has submitted for either Concrete Sales and Manufacturing Services business, was $18.33 million and $14.75 million, respectively, or $33.1 million total.

Both the backlog and new business pipeline are at Company record levels.

Market Opportunity

Urbanization and modernization are the two primary drivers of China ACM's robust long-term growth opportunity. Recent developments support the outlook for accelerated growth across the full range of China ACM's infrastructure markets.

For example, it was recently reported that at the 2010 China International Rail Transit and Urban Development Forum, the government said it wants to add 4,613 kilometers of high speed railways, at a cost of $1 billion, to the 10,000 km lines already under construction. China is also planning a new 10,000 km railway.

The HSR sector is estimated to require at least $15 billion in RMC contracts.

Separately, Bloomberg reported China will spend more than $146 billion to triple the size of its subway system over the next five years, to more than 3,000 kilometers by 2015.

And according to a report published by the Freedonia Group in May 2010, construction expenditures in China are expected to rise 9.1 percent per annum in real terms and reach $1.7 trillion by 2014.

 

                     Use of Non-GAAP Financial Measures

                                   Year Ended June 30,
                              -------------------------------------------
                                                               Increase
                                  2010             2009       (Decrease)
                              ------------     ------------  ------------
Net Income -GAAP              $ 13,006,395     $ 12,068,489  $    937,906
Subtract:
Dividends and accretion on
 redeemable convertible
 preferred stock              $   (955,557)    $ (1,229,473) $   (273,916)
                              ------------     ------------  ------------
Net Income available to
 Common shareholders -GAAP    $ 12,050,838     $ 10,839,016  $  1,211,822
                              ------------     ------------  ------------
Add Back:
Change in fair value of
 warrants                     $  2,488,959     $          -  $  2,488,959
                              ------------     ------------  ------------
Add Back:
Change in Option and Equity
 Based Compensation           $    595,888     $    107,477  $    488,411
                              ------------     ------------  ------------
Add Back:
Accretion of Discount on
 Redeemable Preferred Stock   $    567,580     $    600,968  $    (33,388)
                              ------------     ------------  ------------
Adjusted Net Income available
 to Common shareholders
 -non-GAAP                    $ 15,703,265     $ 11,547,461  $  4,155,804
                              ------------     ------------  ------------

Basic earnings per share -
 GAAP                         $       0.90     $       1.03  $      (0.13)
Add back:
Change in fair value of
 warrant                      $       0.18     $          -  $       0.18
                              ------------     ------------  ------------
Add back:
Change in Option and
 Equity-Based Compensation    $       0.04     $       0.01  $       0.03
                              ------------     ------------  ------------
Add back:
Accretion of Discount on
 Redeemable Preferred Stock   $       0.04     $       0.06  $      (0.02)
                              ------------     ------------  ------------
Adjusted basic earnings per
 share -Non-GAAP              $       1.16     $       1.10  $       0.06
                              ------------     ------------  ------------

Diluted earnings per
 share-GAAP                   $       0.79     $       0.86  $      (0.07)
Add back:
Change in fair value of
 warrant                      $       0.15 (a) $          -  $       0.15
                              ------------     ------------  ------------
Add back:
Change in Option and
 Equity-Based Compensation    $       0.04 (b) $       0.01  $       0.03
                              ------------     ------------  ------------
Adjusted diluted earnings per
 share -Non-GAAP              $       0.98     $       0.87  $       0.11
                              ------------     ------------  ------------
Subtract:
Cash Dividends Paid on
 Redeemable Preferred Stock   $       0.03 (c) $       0.05  $      (0.02)
                              ------------     ------------  ------------
Adjusted diluted earnings per
 share available to common -
 Non-GAAP                     $        .95     $       0.82  $       0.13
                              ------------     ------------  ------------

Weighted average number of
 shares
Basic                           13,456,134       10,526,719
                              ============     ============
Diluted                         16,521,296       14,032,479
                              ============     ============

FY 2010 Results Summary

Revenue. We generated Fiscal Year 2010 revenue of $93,040,847 compared to $39,714,802 during the same period of 2009, an increase of $53,326,045 or 134%. We increased our production volumes in and outside of Beijing this fiscal year compared to our last fiscal year.

As a result, our concrete sales revenue was $70,579,631 for the year ended June 30, 2010, an increase of $42,461,139 or 151%, despite a decrease in unit sale price, compared to the year ended June 30, 2009. The increase in revenues attributable to concrete sales was principally due to addition of two new fixed plants.

During the year ended June 30, 2010, we continued to supply concrete products to thirteen railway projects throughout China through our portable plants, specifically the projects located in Shaanxi Province, Jiangsu Province, Hebei Province, Guangxi Province, Zhejiang Province, Guangdong Province, Liaoning Province, and Beijing. These thirteen projects contributed $15,654,659 to our total revenue for the year ended June 30, 2010, an increase of $8,600,931 or 122%, compared to the year ended June 30, 2009. The increase in revenues attributable to our manufacturing services was principally due to addition of seven new portable plants to service a growing business pipeline. For these railway projects, the general contractors generally supplied their own raw materials while we provided manufacturing and transportation services.

In addition, revenue generated through our technical consulting services was $4,889,460 during the year ended June 30, 2010, an increase of $2,965,371 or 154% compared to the same fiscal quarter in 2009. During the year ended June 30, 2010, we also rented our mixer trucks to mixture stations which generated mixer rental revenues of $1,208,618, a decrease of $1,409,875 or 54%, as we experienced greater overall fleet capacity utilization as the business expands and we also generated marketing cooperation revenue of $422,356.

Gross Profit. Gross profit was $19,336,146 for the fiscal year ended June 30, 2010, as compared to $15,196,760 for the year ended June 30, 2009. Our gross profit for sale of concrete was $5,955,497, or 8.4% of revenue, for the year ended June 30, 2010, compared to $7,461,180, or 27% of revenue, for the same period last year, a decrease of $1,505,683. The lower gross margin for concrete sales for the year ended June 30, 2010, compared with the same period in 2009, reflects exceptionally high demand, and much higher industry prices, for capacity constrained premium concrete blends within unusually tight and convergent project timelines for many large Beijing Olympic era projects completed in the first half of calendar 2009 with the last installment of Olympic-era projects, namely the Beijing South Railway Station which was completed by the 4th fiscal quarter of 2009.

Selling, General and Administrative Expenses. Selling, general and administrative expenses consist of sales commissions, advertising and marketing costs, office rent and expenses, costs associated with staff and support personnel who manage our business activities, and professional and legal fees paid to third parties. We incurred selling, general and administrative expenses of $5,439,579 for the year ended June 30, 2010, an increase of $3,721,785, or 216%, as compared to $1,717,794 for the year ended June 30, 2009. The increase was principally due to an increase in employment, salary and benefit and lease expenses resulting from higher production and a larger base of operations during the year and professional and consulting expenses from being a public company and resulting from our overall production expansion during the year.

Net Income available to Common shareholders. Excluding the effect from non-cash charges related to changes in fair market of warrants, accretion of discount on redeemable preferred stock and stock and option-based compensation, our net income available to Common shareholders would be $15,703,265 for the year ended June 30, 2010, an increase of $4,155,804 or 36%,as compared to net income after cash dividends paid of $11,547,461 for the same period in 2009. See the section "Use of Non-GAAP Financial Measures" above for a discussion regarding the presentation of net income excluding non-cash gain (loss).

Balance Sheet Overview

China ACM had working capital of $24.3 million at the June 30, 2010 fiscal year. Shareholders' equity was $61.2 million compared with $30.0 million on June 30, 2009. The total number of shares outstanding as of September 24 is 17,572,104.

Conference Call

The company will host a corresponding conference call with a live webcast and a full Q&A session on Wednesday, September 29 at 8:00 a.m. Eastern time/5:00 a.m. Pacific time, to discuss these results and answer questions.

Individuals interested in participating in the conference call may do so by dialing 877-477-1461 from the United States, or 973-409-9694 from outside the United States and referencing conference ID #14145706. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company's Web site at www.china-acm.com. Please visit the website at least 15 minutes early to register for the web cast and download any necessary audio software.

A telephone replay will be available through October 13, 2010, by dialing 800-642-1687 from the United States, or 706-645-9291 from outside the United States, and entering conference ID 14145706. A webcast replay will be available for 90 days.

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 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.

Use of Non-GAAP Financial Measures

The Company makes reference to non-GAAP financial measures. Management believes that investors may find it useful to review our financial results that exclude the non-cash expenses of change in fair value of warrants and management owned options as a result of the adoption of a Financial Accounting Standards Board's ("FASB") ASC 815 (EITF 07-05) accounting standard effective from January 1, 2010.

Management believes that these non-GAAP financial measures are useful to investors in that they provide supplemental information to possibly better understand the underlying business trends and operating performance of the Company. The Company uses these non-GAAP financial measures to evaluate operating performance. However, non-GAAP financial measures should not be considered as an alternative to net income or any other performance measures derived in accordance with GAAP.

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.

 


    CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                       AS OF JUNE 30, 2010 AND 2009



                      ASSETS                        2010          2009
                                                ------------- ------------

CURRENT ASSETS:
 Cash                                           $   3,300,820 $  3,634,805
 Restricted cash                                       57,580      453,192
 Marketable securities                                      -       71,880
 Notes receivable                                           -       10,799
 Accounts receivable, net of allowance for
  doubtful accounts of $456,085 and $120,986,
  respectively                                     36,072,691   11,815,402
 Inventories                                        2,164,769    1,216,014
 Other receivables                                  1,416,653    3,845,186
 Prepayments                                        2,821,687    4,255,326
                                                ------------- ------------
  Total current assets                             45,834,200   25,302,604
                                                ------------- ------------

PLANT AND EQUIPMENT, net                           26,488,354   22,089,717
                                                ------------- ------------

OTHER ASSETS:
 Accounts receivable (non-current), net of
  allowance for doubtful accounts of $4,607
  and $328,563 respectively                           364,371    4,132,706
 Deferred tax assets                                  127,741            -
 Advances on equipment purchases                    8,382,383            -
 Long term prepayments                              4,414,391    4,794,746
                                                ------------- ------------
Total other assets                                 13,288,886    8,927,452
                                                ------------- ------------

Total assets                                    $  85,611,440 $ 56,319,773
                                                ============= ============

      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
 Short term loans                               $           - $  4,512,200
 Accounts payable                                  16,473,080   10,722,741
 Customer deposits                                    711,219            -
 Other payables                                       329,136      352,880
 Other payables - shareholders                        772,644      806,946
 Accrued liabilities                                1,652,751      593,057
 Taxes payable                                      1,569,914    3,048,179
                                                ------------- ------------
Total current liabilities                          21,508,744   20,036,003

OTHER LIABILITIES
 Warrants liabilities                               2,920,520            -
                                                ------------- ------------
Total liabilities                                  24,429,264   20,036,003
                                                ------------- ------------

COMMITMENTS AND CONTINGENCIES (Note 19)

REDEEMABLE CONVERTIBLE PREFERRED STOCK ($0.001
 par value, no share outstanding as of June 30,
 2010 and  851,125 shares issued and
 outstanding as of June 30, 2009), net of
 discount for the amount of $0 and $567,581 as
 of June 30, 2010 and 2009, respectively                    -    6,241,419
                                                ------------- ------------

SHAREHOLDERS' EQUITY:

 Preferred stock $0.001 par value, 1,000,000
  shares authorized, no share outstanding as of
  June 30, 2010 and 851,125 issued and
  outstanding as of June 30, 2009, and
  classified outside shareholders' equity (see
  above), liquidation preference of $8.00 per
  share and accrued dividends as of June 30,
  2010 and 2009                                             -            -

 Common stock, $0.001 par value, 74,000,000
  shares authorized, 17,467,104  and 10,595,500
  shares issued and outstanding as of June 30,
  2010 and 2009, respectively                          17,467       10,596
 Paid-in-capital                                   33,720,762   12,987,417
 Contribution receivable                                    -   (1,210,000)
 Retained earnings                                 19,912,444   12,783,892
 Statutory reserves                                 4,511,520    2,765,179
 Accumulated other comprehensive income             3,019,983    2,705,267
                                                ------------- ------------
Total shareholders' equity                         61,182,176   30,042,351
                                                ------------- ------------
Total liabilities, redeemable preferred stock
 and shareholders' equity                       $  85,611,440 $ 56,319,773
                                                ============= ============






    CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE (LOSS) INCOME
                FOR THE YEARS ENDED JUNE 30, 2010 AND 2009



                                                    2010          2009
                                                ------------  ------------
REVENUE
 Sales of concrete                              $ 70,579,631  $ 28,118,492
 Manufacturing services                           15,654,659     7,053,728
 Technical services                                4,889,460     1,924,089
 Mixer rental                                      1,208,618     2,618,493
 Others                                              708,479             -
                                                ------------  ------------
Total revenue                                     93,040,847    39,714,802
                                                ------------  ------------

COST OF REVENUE
 Concrete                                         64,624,134    20,657,312
 Manufacturing services                            8,261,407     2,768,255
 Technical services                                  320,835       147,418
 Mixer rental                                        151,456       945,057
 Others                                              346,869             -
                                                ------------  ------------
  Total cost of revenue                           73,704,701    24,518,042
                                                ------------  ------------

GROSS PROFIT                                      19,336,146    15,196,760

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES       5,439,579     1,717,794
                                                ------------  ------------

INCOME FROM OPERATIONS                            13,896,567    13,478,966
                                                ------------  ------------

OTHER (EXPENSE) INCOME, NET
 Other subsidy income                              4,881,152     2,109,290
 Realized gain from sales of marketable
  securities                                          27,079             -
 Non-operating (expense) income, net                (120,060)     (602,020)
 Change in fair value of warrant liability        (2,488,959)            -
 Interest income                                       9,001             -
 Interest expense                                    (23,834)     (802,650)
                                                ------------  ------------
TOTAL OTHER INCOME, NET                            2,284,379       704,620
                                                ------------  ------------

INCOME BEFORE PROVISION FOR INCOME TAXES          16,180,946    14,183,586

PROVISION FOR INCOME TAXES                         3,174,551     2,115,097
                                                ------------  ------------

NET INCOME                                        13,006,395    12,068,489

DIVIDENDS AND ACCRETION ON REDEEMABLE
 CONVERTIBLE PREFERRED STOCK                        (955,557)   (1,229,473)
                                                ------------  ------------

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS       12,050,838    10,839,016
                                                ------------  ------------

RECONCILIATION OF COMPREHENSIVE INCOME:
 Net Income                                       13,006,395    12,068,489
 Unrealized loss from marketable securities                -        20,605
 Foreign currency translation adjustment             335,321        86,196
                                                ------------  ------------

COMPREHENSIVE INCOME                            $ 13,341,716  $ 12,175,290
                                                ============  ============

EARNING PER COMMON SHARE ALLOCATED TO COMMON
 SHAREHOLDERS
 Weighted average number of shares:
  Basic                                           13,456,134    10,526,719
                                                ============  ============
  Diluted                                         16,521,296    14,032,479
                                                ============  ============

 Earnings per share:
  Basic                                         $       0.90  $       1.03
                                                ============  ============
  Diluted                                       $       0.79  $       0.86
                                                ============  ============






    CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE (LOSS) INCOME
                    FOR THE QUARTER ENDED JUNE 30, 2010



                                                               3 months
                                                            June 30, 2010
                                                            --------------
REVENUE
 Sales of concrete                                          $   23,820,255
 Manufacturing services                                          5,125,647
 Technical services                                              1,822,298
 Mixer rental                                                       50,242
 Others                                                            126,191
                                                            --------------
Total revenue                                                   30,944,633
                                                            --------------

COST OF REVENUE
 Concrete                                                       21,354,431
 Manufacturing services                                          2,783,306
 Technical services                                                100,716
 Mixer rental                                                       15,475
 Others                                                             38,713
                                                            --------------
  Total cost of revenue                                         24,292,641
                                                            --------------

GROSS PROFIT                                                     6,651,992

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES                     1,848,409
                                                            --------------

INCOME FROM OPERATIONS                                           4,803,583
                                                            --------------

OTHER (EXPENSE) INCOME, NET
 Other subsidy income                                            1,735,974
 Realized gain from sales of marketable securities                      71
 Non-operating (expense) income, net                               (29,173)
 Change in fair value of warrant liability                       1,900,988
 Interest income                                                     2,995
 Interest expense                                                      (69)
                                                            --------------
TOTAL OTHER INCOME, NET                                          3,610,786
                                                            --------------

INCOME BEFORE PROVISION FOR INCOME TAXES                         8,414,369

PROVISION FOR INCOME TAXES                                       1,221,918
                                                            --------------

NET INCOME                                                       7,192,451

DIVIDENDS AND ACCRETION ON REDEEMABLE CONVERTIBLE PREFERRED
 STOCK                                                             (86,323)
                                                            --------------

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS                      7,106,128
                                                            --------------






    CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE (LOSS) INCOME
                    FOR THE QUARTER ENDED JUNE 30, 2009


                                                                3 Months
                                                                June 30,
                                                                  2009
                                                              ------------

REVENUE
    Sales of concrete                                         $ 11,736,443
    Manufacturing services                                       1,752,574
    Technical services                                             452,506
    Mixer rental                                                   531,806
                                                              ------------
      Total revenue                                             14,473,329
                                                              ------------

COST OF SALES
    Concrete                                                     8,510,245
    Manufacturing services                                         964,899
    Technical services                                              27,676
    Mixer rental                                                   303,852
                                                              ------------
      Total cost of revenue                                      9,806,672
                                                              ------------

GROSS PROFIT                                                     4,666,657

SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES                     (361,463)
                                                              ------------

INCOME FROM OPERATIONS                                           5,028,120
                                                              ------------

OTHER INCOME (EXPENSE), NET
    Other subsidy income                                           808,298
    Non-operating expense, net                                    (400,489)
    Interest expense, net                                         (166,883)
                                                              ------------
TOTAL OTHER INCOME, NET                                            240,926
                                                              ------------

INCOME BEFORE PROVISION FOR INCOME TAXES                         5,269,046

PROVISION FOR INCOME TAXES                                        (401,610)
                                                              ------------

NET INCOME                                                       5,670,656

DIVIDENDS AND ACCRETION ON REDEEMABLE CONVERTIBLE PREFERRED
 STOCK                                                             305,898
                                                              ------------

NET INCOME AVAILABLE TO COMMON SHAREHOLDERS                      5,364,758
                                                              ------------

RECONCILIATION OF COMPREHENSIVE INCOME:
    Net Income                                                   5,670,656
    Unrealized gain (loss) from marketable securities               23,921
    Foreign currency translation adjustment                        (12,643)
                                                              ------------

COMPREHENSIVE INCOME                                          $  5,681,934
                                                              ============






    CHINA ADVANCED CONSTRUCTION MATERIALS GROUP, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE YEARS ENDED JUNE 30, 2010 AND 2009



                                                   2010           2009
                                               ------------   ------------

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net income                                    $ 13,006,395     12,068,489
 Adjustments to reconcile net income to cash
  provided by (used in) operating activities:
   Depreciation                                   2,924,616      2,184,462
   Stock-based compensation expense                 595,888        107,477
   Bad debt expense                                   8,651       (189,052)
   Change in fair value of warrants               2,488,959              -
   Realized gain on sale of marketable
    securities                                      (27,079)             -
  Changes in operating assets and liabilities
   Note receivable                                   10,811              -
   Accounts receivable                          (28,605,681)   (13,681,007)
   Inventories                                     (938,086)      (977,200)
   Other receivables                              2,439,020     (3,347,936)
   Prepayments                                    1,450,571        419,258
   Deferred tax assets                             (127,194)             -
   Long term prepayments                            370,275        179,463
   Accounts payable                               5,633,766      4,403,314
   Customer deposits                                708,177       (166,114)
   Other payables                                   148,264         97,849
   Accrued liabilities                            1,208,647        291,597
   Taxes payable                                 (1,488,516)     1,970,528
                                               ------------   ------------
 Net cash (used in) provided by operating
  activities                                       (192,516)     3,361,128
                                               ------------   ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
 Proceeds from sale of marketable securities         78,413              -
 Advanced for equipment purchase                 (4,495,436)             -
 Purchase of property, plant and equipment       (2,682,293)    (1,771,915)
                                               ------------   ------------
 Net cash used in investing activities           (7,099,316)    (1,771,915)
                                               ------------   ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
 Proceeds from short term loan                      190,670      8,247,950
 Payments of short term loan                     (4,699,119)    (8,024,538)
 Payment to shareholder for rent                   (207,906)       (73,889)
 Restricted cash                                    395,612        459,900
 Payment to redeem preferred stock                  (75,000)             -
 Proceeds from issuance of options                  187,500              -
 Proceeds from issuance of warrants                 571,351              -
 Proceeds from issuance of common stock, net
  of offering costs                              11,117,094              -
 Preferred dividends paid                          (543,631)      (472,851)
                                               ------------   ------------
 Net cash provided by financing activities        6,936,571        136,572
                                               ------------   ------------

EFFECTS OF EXCHANGE RATE CHANGE IN CASH              21,276         (1,475)
                                               ------------   ------------

NET (DECREASE) INCREASE IN CASH                    (333,985)     1,724,310

CASH, beginning of year                           3,634,805      1,910,495
                                               ------------   ------------

CASH, end of year                              $  3,300,820      3,634,805
                                               ============   ============

SUPPLEMENTAL DISCLOSURE OF NON-CASH
 TRANSACTIONS
Advances on equipment purchase offset by
 Accounts Payable                              $   (628,946)  $          -
                                               ============   ============
Advances on equipment purchase paid by
 transferring of Accounts Receivable           $ (4,113,869)  $          -
                                               ============   ============
Fixed assets additions paid by transferring of
 Accounts Receivable                           $ (4,168,188)  $ (5,703,245)
                                               ============   ============
Accretion of discount on redeemable preferred
 stock                                         $    567,580   $    600,968
                                               ============   ============