Jun. 7, 2011 (GlobeNewswire) --

SAN MATEO, Calif., June 7, 2011 (GLOBE NEWSWIRE) -- China Armco Metals, Inc. (NYSE Amex:CNAM) ("China Armco" or "the Company"), a distributor of imported metal ore and metal recycler with a new state of the art scrap metal recycling facility in China, today announced the preliminary unaudited operating results for the first two months of the second quarter of 2011.

In April and May of this year, China Armco sold 25,000 metric tons (MT) of recycled steel products to 3 customers. The Company has recognized approximately $14 million of net sales in its recycled steel business through the first two months of the second quarter. Approximately 80% of the tonnage sold in April and May were completed using pre-selling contracts.

In addition, the Company recorded $7.1 million of revenue in its metal ore trading business. Client activity remained solid, as reflected in the 41,000 MT of metal ores sold during the first two months of the second quarter.

"Our recycling business picked up from a seasonally slow first quarter," said Mr. Kexuan Yao, CEO and Chairman of China Armco. "We are seeing continued interest from customers to increase the amount of recycled metals purchased. So far this year, we have signed 2 new recycling customers who agreed to our pre-selling strategy. As we increase production and make further improvements in our operational efficiencies, we expect measured improvements in our profitability."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the recent launch of operations of a 1-million ton per year shredder and recycler of metals located on 32 acres of land. China Armco maintains customers throughout China which includes the fastest growing steel producing mills and foundries in the PRC. Raw materials are acquired from a global group of suppliers located in diverse countries, including, but not limited to, Brazil, India, Indonesia, Ukraine and the United States. China Armco's product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore and steel billet. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position the Company as one of the 10 largest recyclers of scrap metal in China. China Armco estimates the demand for recycled metal market in China will be over 120 million metric tons in 2011. For more information about China Armco, please visit http://www.armcometals.com.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding our revenues, net income, earnings and production related to our scrap metal recycling operations and the extent of government imposed blackouts and the impact on our recycling operations. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by our partner's ability to complete its obligations to source various minerals and ores within acceptable specifications, demand and fluctuations in the prices of those minerals and ores, our ability to resell any sourced minerals and ores at current market prices and on favorable terms, our ability to finance the purchase price of any minerals and ores, and the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2009.

CONTACT: Investor Relations:
        
         HC International, Inc.
         Ted Haberfield, Executive VP
         Tel: +1-760-755-2716
         Email: thaberfield@hcinternational.net
         Web: http://www.hcinternational.net
        
         Company:
         US Contact:
         Oliver Hu, Business Associate
         China Armco Metals, Inc.
         Office: 650.212.7620
         Mobile: 415.794.0906
         Email: oliver@armcometals.com
         Website: www.armcometals.com
        
         China Contact:
         Wayne Wu:
         China Armco Metals, Inc.
         Office: 021-62375286
         Cell: 18602114846
         Email: wayne.wu@armcometals.com
         Website: www.armcometals.com

China Armco Metals Provides Update on Metal Recycling Business

SAN MATEO, CA--(Marketwire - 12/21/10) - China Armco Metals, Inc. (AMEX:CNAM - News) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in China, today announced it expects the Company to produce and sell approximately 25,500 tons of recycled steel with an aggregate value of approximately $12 million in the fourth quarter of 2010.

China Armco's fourth quarter orders to sell 25,500 tons of recycled steel are from 5 customers. The central government recently announced that the power rationing for energy intensive industries and steel producers will be phased out and the Company is optimistic about being able to be operating on a full time basis in the near term.

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the recent launch of operations of a 80,000 ton per year shredder and recycler of metals located on 32 acres of land. China Armco maintains customers throughout China which includes the fastest growing steel producing mills and foundries in the PRC. Raw materials are acquired from a global group of suppliers located diverse countries, including, but not limited to, India, Hong Kong, Nigeria, Brazil, Turkey and the Philippines. China

Last Trade: 2.89 52 Week: 11.10 – 2.75 Market Cap: 43.87 Million

Email: oliver@armcometals.com

China Armco Metals Ships $17.1 Million in Iron Ore for Its Trading Business

SAN MATEO, CA--(Marketwire - 12/15/10) - China Armco Metals, Inc. (AMEX:CNAM - News) ("China Armco" or the "Company"), a distributor of imported metal ore and metal recycler with a new state of the art scrap metal recycling facility in China, today provided an update on its trading business.

Through November 30, 2010, China Armco has secured and shipped three orders to deliver iron ore to trading firms serving iron and steel producers in China. The orders include a combined volume of 112,000 tons with an aggregate value of approximately $17.1 million.

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the recent launch of operations of a 1 million ton per year shredder and recycler of metals located on 32 acres of land. China Armco maintains customers throughout China which includes the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey and the Philippines. China Armco's product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, copper ore, manganese ore, magnesium and steel billet. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position China Armco as one of the 10 largest recyclers of scrap metal in China. China Armco estimates the recycled metal market in China as 70 million metric tons. For more information about China Armco, please visit http://www.armcometals.c....

Last Trade: 2.909 52 Week: 11.10 – 2.75 Market Cap: 44.17 Million

Email: oliver@armcometals.com

China Armco Metals Ships $17.1 Million in Iron Ore for Its Trading Business

 
Financial Highlights

--  1st quarter 2010 revenue increases to $8.6 million, up 59% from $5.4
    Million in the 1st quarter of 2009
--  1st quarter 2010 Non-GAAP Net Income of $670,000 versus $185,000 in 1st
    quarter of 2009
--  1st quarter 2010 Non-GAAP EPS of $0.06 versus $0.02 in 1st quarter of
    2009
--  1st quarter 2010 GAAP net income of $53,000 after inclusion of a
    non-cash charge of ($324,000) for the increase of fair market value of
    outstanding common stock purchase warrants
--  1st quarter 2010 GAAP EPS of $0.01 versus $0.03 in first quarter of
    2009

Maintains Financial Forecast for Full Year 2010

--  Maintains financial guidance with full year 2010 revenue exceeding $220
    with full year net income exceeding $12 million

First Quarter 2010 Financial Results

Net revenues for the first quarter of 2010 were $8.6 million, an increase of 59% compared to the $5.4 million recorded in the first quarter of 2009. The increase in revenue is largely attributable to a stronger overall business environment in 2010 as compared to 2009 assisted by our increased credit availability.

Cost of goods sold for the first quarter of 2010 were $8.0 million, as compared to $4.8 million in the first quarter of 2009. Gross profit margins were 6.5% in the first quarter of 2010 as compared to 9.4% in the first quarter of 2009. The decrease in margins in 2010 was mainly due to a heavy concentration of lower margin iron ore shipments in the Company's ore sourcing and distribution operations. Additionally, we received a favorable vendor price adjustment of $963,000 for goods previously shipped. This was recorded as a gain related to a vendor price adjustment in other income, not as an offset to our cost of goods sold. Operating expenses for the first quarter of 2010 were $914,000, as compared to $334,000 in the first quarter of 2009. The Company's operating expenses are comprised of selling expenses and general and administrative expenses. These increases are a result of a higher level of sales and additional costs related to stock based compensation, and increases in staff for the initiation of our metal recycling operations.

On a non-GAAP basis, net income for the first quarter of 2010 was $670,000, an increase of over 262% as compared to non-GAAP net income of $185,000 in the first quarter of 2010. This resulted in Non-GAAP EPS of $0.06 as compared to non-GAAP EPS of $0.02 in the first quarter of 2009. After deducting all non-cash items including $322,000 related to the fair market value of outstanding warrants treated as derivative liabilities, GAAP net income was $53,000 as compared to $297,000 in the first quarter of 2009 (inclusive of a gain of $170,000 from the reduction in fair market value of the same warrants). This resulted in GAAP EPS of $0.01 as compared to GAAP EPS of $0.03 in the first quarter of 2009.

At March 31, 2010 shareholder equity reached $27.1 million with cash of $4.1 million as compared to December 31, 2009, when shareholder equity was $17.1 million with cash of $744,000.

Financial Forecast for Full Year of 2010

As a result of a strong comparative performance in the first quarter of 2010 with continued strong demand in our distribution business coupled with the launch in the second quarter and anticipated ramp up in production at our newly operational scrap metal recycling facility, management is maintaining financial guidance with revenues for the full year of 2010 exceeding $220 million with net income exceeding $12.0 million. Management expects its metal recycling operations to become the largest contributor to revenues progressively accelerating in the second half of 2010.

Commenting on China Armco Metals' financial performance, Kexuan Yao, its CEO and Chairman stated, "We are pleased with our performance in the first quarter. While it is traditionally our weakest quarter, we increased sales over 59% from the same period in 2009. We anticipate that as our recycling ramps up throughout the year and our distribution business builds on the favorable trends from the first quarter of 2010, we expect to see record performance for our company in the coming years. We are in the strongest financial position in our history and intend to put our capital to work to further fuel our growth."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the recent launch of operations of a 1-million ton per year capacity scrap metal shredder and recycler located on 32 acres of land in Lianyungang, China. China Armco maintains customers throughout China which includes the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, and the Philippines. China Armco's product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore and steel billet. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position China Armco as one of the 10 largest recyclers of scrap metal in China. China Armco estimates the recycled metal market at 70 million metric tons in 2010.

 
                CHINA ARMCO METALS, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS


                                                 March 31,    December 31,
                                                   2010          2009
                                               ------------  ------------
                                                (Unaudited)
ASSETS
CURRENT ASSETS:
Cash                                           $  4,125,091  $    743,810
Pledged deposits                                    214,768       779,169
Accounts receivable, net                         13,406,561    28,390,528
Inventories                                          37,854       496,149
Advance on purchases                              3,481,847     3,903,782
Prepayments and other current assets              6,017,816     3,513,538

Total Current Assets                             27,283,937    37,826,976

PROPERTY, PLANT AND EQUIPMENT, net               25,157,851    19,642,861

LAND USE RIGHTS, net                              2,147,100     2,158,234

Total Assets                                   $ 54,588,888  $ 59,628,071

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Loans payable                                  $          -  $ 17,021,558
Current maturities of long-term debt              2,194,234     2,193,881
Accounts payable                                  7,489,100     6,841,584
Advances from stockholder                         1,870,851        35,475
Customer deposits                                 2,921,101     2,453,098
Corporate income tax payable                      2,110,849     1,990,277
Value added tax and other taxes payable             345,862     1,312,455
Accrued expenses and other current liabilities    1,905,838       654,756

Total Current Liabilities                        18,837,835    32,503,084

LONG-TERM DEBT                                    8,045,523     6,581,641

DERIVATIVE LIABILITY                                572,396     3,417,974

Total Liabilities                                27,455,754    42,502,699

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value; 1,000,000
 shares authorized;
 none issued or outstanding                               -             -
Common stock, $0.001 par value, 74,000,000
 shares authorized, 11,793,262
 and 10,310,699 shares issued and
 outstanding, respectively                           11,793        10,310
Additional paid-in capital                       13,017,568     2,556,966
Deferred compensation                            (1,180,108)     (676,500)
Retained earnings                                14,990,139    14,936,915
Accumulated other comprehensive income:
Foreign currency translation gain                   293,742       297,681

Total Stockholders' Equity                       27,133,134    17,125,372
                                               ------------  ------------

Total Liabilities and Stockholders' Equity     $ 54,588,888  $ 59,628,071




                CHINA ARMCO METALS, INC. AND SUBSIDIARIES
  CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)


                                            For the three   For the three
                                             Months Ended    Months Ended
                                            March 31, 2010  March 31, 2009
                                            --------------  --------------
                                              (Unaudited)     (Unaudited)

NET REVENUES                                $    8,576,570  $    5,357,858

COST OF GOODS SOLD                               8,017,651       4,847,235

GROSS PROFIT                                       558,919         510,623

OPERATING EXPENSES:
Selling expenses                                   342,705          27,293
General and administrative expenses                570,872         306,641

Total operating expenses                           913,577         333,934

INCOME (LOSS) FROM OPERATIONS                     (354,658)        176,689

OTHER (INCOME) EXPENSE:
Interest income                                       (225)              -
Interest expense                                    85,115          18,036
Gain from vendor price adjustment                 (963,259)              -
Loss (gain) on change in fair value of
 derivative liability                              321,754        (169,826)
Other (income) expense                               2,400          30,227

Total other (income) expense                      (554,215)       (121,563)

INCOME (LOSS) BEFORE INCOME TAXES                  199,557         298,252

INCOME TAXES                                       146,333             790
                                            --------------  --------------

NET INCOME (LOSS)                                   53,224         297,462

OTHER COMPREHENSIVE INCOME:
Foreign currency translation gain (loss)            (3,939)        (26,445)

COMPREHENSIVE INCOME (LOSS)                 $       49,285  $      271,017
                                            ==============  ==============

NET INCOME (LOSS) PER COMMON SHARE - BASIC
 AND DILUTED:
Basic earning (loss) per share              $         0.01  $         0.03
                                            ==============  ==============
Diluted earning (loss) per share            $            -  $         0.03
                                            ==============  ==============

Weighted Average Common Shares Outstanding
 - basic                                        10,571,611      10,095,616
                                            ==============  ==============
Weighted Average Common Shares Outstanding
 - diluted                                      12,082,551      10,095,616
                                            ==============  ==============

Q1 Fiscal Year 2010 GAAP Reconciliation

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME

The following table reconciles the calculation of net income per share on a basic and fully diluted basis from the amounts reported in accordance with generally accepted accounting principles ("GAAP") to such amounts before giving effect to the following non-cash items: depreciation and amortization, restricted share-based compensation expenses - employees and directors, share-based compensation expense - consultants, and gain or loss due to the change in fair value of derivative liability. This disclosure is being provided as we believe it is meaningful to our investors and other interested parties to understand our operating performance on a consistent basis without regard to the impact of expenses linked to market fluctuations. The presentation of the non-GAAP information titled "Non-GAAP net income" and "Non-GAAP net loss" is not meant to be considered in isolation or as a substitute for net income or diluted income per share prepared in accordance with GAAP.

 
                                             Three Months    Three Months
                                            Ended March 31, Ended March 31,
                                                 2010           2009
                                            =============== ==============
                                              Unaudited       Unaudited
                                            =============== ==============
                                                               Restated
GAAP net income                             $        53,224 $      297,462
Depreciation and Amortization expense               126,038         57,681
Restricted Share-based compensation
 expenses - Employees & Directors(1)                 59,792              -
Share-based compensation expenses -
 Consultants                                        109,622              -
Change in fair value of derivative
 liability                                          321,754       (169,826)
                                            --------------- --------------
Non-GAAP net income                                 670,430        185,317
                                            =============== ==============
Weighted Average Common Shares Outstanding
 - basic and diluted                             10,571,611     10,095,616
GAAP Earnings applicable to common
 stockholders                               $        53,224 $      297,462
  GAAP Basic EPS                                       0.01           0.03
  GAAP Diluted EPS                                     0.01           0.03
Non-GAAP Earnings applicable to common
 stockholders                                       670,430        185,317
  Non-GAAP Basic EPS                                   0.06           0.02
  Non-GAAP Diluted EPS                      $          0.06 $         0.02
                                            =============== ==============
Shares used in basic net income per-share
 calculation - GAAP                              10,571,611     10,095,616
Shares used in basic net income per-share
 calculation - Non-GAAP                          10,571,611     10,095,616
Shares used in diluted net income per-share
 calculation - GAAP                              12,082,551     10,095,616
Shares used in diluted net income per-share
 calculation - Non-GAAP                          12,082,551     10,095,616

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:

 

--  We operate in a business that is cyclical and where demand can be
    volatile.
--  Our dependence on adequate supply and availability of raw materials.
--  The principal markets we serve are highly competitive.
--  Our customers' inability to fulfill their contractual obligations
    during uncertain economic conditions.
--  Loss of order volumes from any of our major customers could result in
    a significant decline in our sales and our cash flows may be reduced.
--  Equipment upgrades and equipment failures may lead to production
    curtailments or shutdowns.
--  Our need for additional financing to fund expansion of our recycling
    facility and working capital for our metal ore business and the
    potentially dilutive effects of those activities.
--  Our ability to manage growth in operations to maximize our potential
    growth and achieve our expected revenues.
--  The lack various legal protections in certain agreements to which we
    are a party and which are material to our operations which are
    customarily contained in similar contracts prepared in the United
    States.
--  Our dependence on our key management personnel.
--  The effect of changes resulting from the political and economic
    policies of the Chinese government on our assets and operations
    located in the PRC.
--  The influence of the Chinese government over the manner in which our
    Chinese subsidiaries must conduct our business activities.
--  The impact on future inflation in the PRC on economic activity in the
    PRC.
--  The impact of any recurrence of severe acute respiratory syndrome, or
    SAR's, or another widespread public health problem.
--  The limitation on our ability to receive and use our revenues
    effectively as a result of restrictions on currency exchange in the
    PRC.
--  Our ability to enforce our rights due to policies regarding the
    regulation of foreign investments in the PRC.
--  The restrictions imposed under recent regulations relating to offshore
    investment activities by Chinese residents and the increased
    administrative burden we face and the creation of regulatory
    uncertainties that may limit or adversely affect our ability to
    complete the business combination with our PRC based subsidiaries.
--  Our ability to comply with the United States Foreign Corrupt Practices
    Act which could subject us to penalties and other adverse consequences.
--  Our ability to establish adequate management, legal and financial
    controls in the PRC.
--  The provisions of our articles of incorporation and bylaws which may
    delay or prevent a takeover which may not be in the best interests of
    our shareholders.
--  Our controlling stockholders may take actions that conflict with your
    interests.
 

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2009.

 
Contact:
China Armco Metals, Inc.
Richard Galterio
Investor Relations
954-363-7333

The scrap metal will be processed at China Armco's new facility in Lianyungang, China which entered into production in the second quarter of 2010. As previously announced, China Armco secured a contract to deliver approximately 23,000 metric tons of processed scrap metal per month for a period of 10 months to a major steel producer in 2010 valued at approximately $100 million based on the spot price of scrap metal in March of 2010. These new sourcing contracts will provide China Armco with the raw materials to meet its commitment to this major steel producer as well as provide additional inventory to support its sales efforts to other customers.

Commenting on the supply contracts, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are very pleased to have secured a sizable and consistent scrap metal supply. This is an important step forward as we ramp up production at our newly constructed metal recycling facility in Lianyungang. The infusion of capital from our recent equity raise coupled with the exercise of options and warrants, has provided us with the added financial flexibility to secure favorable long term supply contracts to accelerate our growth plans for 2010 and beyond. We now have the ability to look to take advantage of numerous opportunities before us and intend to work diligently to aggressively expand our operations for the benefit of our shareholders."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the recent launch of operations of a 1-million ton per year shredder and recycler of metals located on 32 acres of land acquired by China Armco. China Armco maintains customers throughout China which includes the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, and the Philippines. China Armco's product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore and steel billet. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position China Armco as one of the 10 largest recyclers of scrap metal in China. China Armco estimates the recycled metal market as 70 million metric tons. For more information about China Armco, please visit http://www.armcometals.com

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding the ability of our suppliers to fulfill their delivery obligations and market prices and revenues related to the sale of processed scrap metal. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by our partner's ability to complete its obligations to source various minerals and ores within acceptable specifications, demand and fluctuations in the prices of those minerals and ores, our ability to resell any sourced minerals and ores at current market prices and on favorable terms, our ability to finance the purchase price of any minerals and ores, and the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2009.

Contact:

China Armco Metals, Inc.
Gary Liu
U.S. Representative
954-363-7333
ir@armcometals.com

Commenting on the listing, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are extremely pleased to receive approval for listing from the NYSE Amex. This is an important step in the growth of our company as we look to enhance our corporate visibility and strengthen our shareholder base. We have worked hard to position our company to meet the stringent requirements of the exchange and are honored to join the NYSE Amex group of companies. We are confident that this listing will significantly enhance our corporate image in the U.S. capital markets as we continue to grow our business in the coming years."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and is entering into the metal recycling business through the construction of a facility on 22 acres of land capable of processing one million metric tons of scrap metal on an annual basis. China Armco Metals maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. China Armco Metals product lines include ferrous and non-ferrous ore, iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Beginning in the fourth quarter of 2009, China Armco Metals expects to begin operations in its steel recycling and scrap metal recycling business. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position China Armco Metals as one of the top 10 largest recyclers of scrap metal in China. China Armco Metals estimates the recycled metal market as 70 million metric tons annually.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our ability to successfully complete construction of our proposed scrap steel recycling facility, or, even if constructed, our ability to operate the proposed recycling facility at expected capacity levels and at a profit.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

 
Contact:
China Armco Metals, Inc.
Gary Liu
U.S. Representative
954-363-7333
ir@armcometals.com 

Financial Highlights

- Third quarter revenue increases to $27.3 million versus $20.4 million in the third quarter of 2008

- Third quarter loss of $824,000 after one time tax accrual adjustment and one time sale at a reduced gross margin

- Revenue for first nine months of 2009 increases to a record $55.2 million, a 28% increase from the same period in 2008

- $0.26 per share EPS for first nine months of 2009 compared to $0.48 for the first nine months of 2008

Financial Forecast for Full Year 2009

- Sees full year revenue ranging between $90 million and $95 million

- Sees full year net income ranging between $4.5 million and $5 million with EPS ranging between $0.45 and $0.50

Third Quarter 2009 Financial Results

Net revenues for the third quarter of 2009 were $27.3 million, an increase of 34.0% compared to the $20.4 million recorded in the third quarter of 2008. The increase in revenue is largely attributable to a stronger overall business environment in 2009 as compared to 2008, which witnessed some business interruptions due to the Beijing Olympics for the months of July through September.

Cost of goods sold for the third quarter of 2009 was $26.3 million, as compared to $17.9 million in the third quarter of 2008. Gross margins were 3.8% in the third quarter of 2009 as compared to 12% in the third quarter of 2008. The decrease in gross margins in the 2009 period was largely attributable to a one time sale at a lower gross margin related to a large customer order for chromium in the company's ore sourcing and distribution operations. Operating expenses for the third quarter of 2009 were $452,771, as compared to $344,116 in the third quarter of 2008. These increases are a result of higher levels of sales operations and additional costs related to increases in staff, construction of its metal recycling facility and costs associated with the company's preparations for launching its metal recycling operations.

Income before taxes in the third quarter of 2009 was $275,293 with income taxes for the quarter totaling $1,140,343, inclusive of a third quarter adjustment in tax accruals of $1.1 million. This resulted in a net loss for the quarter of $865,050 or $0.09 per share on a diluted basis based on 10.1 million shares outstanding as compared to net income of $1,355,833 or $0.15 per share on a diluted basis in the third quarter of 2008 based on 9.2 million shares outstanding.

First Nine-Months of 2009 Financial Results

For the first nine months of 2009 China Armco generated a 27.9% increase in revenues to $55.4 million as compared to revenue of $43.2 million for the same period 2008. The performance for the first nine months of 2009 was driven by increased sales revenues in the Company's metal distribution business.

Cost of goods sold for the first nine months of 2009 were $49.5 million as compared to $38.6 in the first nine months of 2008. Gross margins were 10.3% for the nine months ended September 30, 2009 as compared to 10.5% in 2008 for the same nine month period.

Operating expenses for the first nine months of 2009 were $1.4 million as compared to $717,070 in the first nine months of 2008. As noted above, increases are a result of expanded sales operations and additional costs related to increases in staff and construction of its metal recycling facility and costs associated with the company's preparations for launching its metal recycling operations.

Income taxes were $1,140,417 for the first nine months of 2009 as compared to $795,682 for the nine months of 2008. The increase in taxes is reflective of the company's China operations, which are subject to a statutory tax rate of 17.5%, and its Hong Kong distribution operations are now subject to Hong Kong SAR income taxes.

For the nine months ended September 30, 2009 net income was $2.6 million as compared to $3.9 million in the comparable 2008 period. On a diluted basis, earnings per share for the nine months of 2009 were $0.26 per share based on 10.1 million common shares outstanding as compared to $0.48 per share in the same period in 2008 on 8.1 million shares outstanding.

At September 30, 2009, shareholder equity reached $17.9 million with working capital of approximately $12.8 million and cash of $4.7 million.

Financial Forecast for Full Year of 2009

Management is witnessing strong sales momentum in the fourth quarter, traditionally the strongest quarter of its distribution business, and now anticipates full year 2009 revenue ranging between $90 million and $95 million, with net income ranging between $4.5 million and $ 5 million. Management also anticipates that its metal recycling operation will be completed and tested sometimes in December of 2009 and ramp production starting in the first quarter fueling substantial growth in 2010.

Commenting on the company's financial performance, Kexuan Yao, CEO and Chairman of Armco Metals stated, "We are pleased with the top line performance we achieved in the first nine months of 2009. Our bottom line was adversely affected by two items which we do not anticipate will recur in the future. More importantly we see strong momentum in the fourth quarter coupling with the launch of our metal recycling business setting the stage for what we believe will be a very prosperous 2010. We are excited to enter this new business line and look forward to providing more information about these operations after they are launched in the near future."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and is entering into the metal recycling business through the construction of a facility on 22 acres of land capable of processing one million metric tons of scrap metal on an annual basis. China Armco Metals maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. China Armco Metals product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Beginning in the late fourth quarter of 2009 and into 2010, China Armco Metals expects to begin operations in its steel recycling and scrap metal recycling business. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position China Armco Metals as one of the top 10 largest recyclers of scrap metal in China. China Armco Metals estimates the recycled metal market as 70 million metric tons annually.

Safe Harbor Statement

This press release contains forward-looking statements. Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our ability to successfully complete construction of our proposed scrap steel recycling facility, our ability to operate the proposed recycling facility at expected capacity levels and at a profit, our ability to maintain our gross profit margins and control our expenses, and our ability to meet the revenue and net income projections contained in this release.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

 
Contact:
China Armco Metals, Inc.
Gary Liu
U.S. Representative
954-363-7333
ir@armcometals.com

Mr. Thomson has been the president of Thomson Associates, Inc., a leading merchant banking and management company, since 1978. Mr. Thomson's currently sits on the Board of Directors of a number of publicly traded companies in the U.S. and Canada including China Automotive Systems, Inc., Score Media, Inc., Asia Bio-Chem Group Co. Ltd., and Maxus Technology Corporation. Mr. Thomson received his Bachelors Degree in Business Communication from Dalhousie University in 1961, and became a Chartered Accountant affiliated with Institute of Chartered Accountants in 1963. Mr. Thomson qualifies as an audit committee financial expert and will act as the Chairman of the Audit Committee.

Mr. Pang is the incumbent Branch Manager of the Bank of China for the Lianyungang Economic and Technological Development Zone for its branch in Lianyungang City, Jiangsu Province of China. Prior to his current position Mr. Pang has served in various capacities for the Bank of China since July 1993 including Secretary to the Branch Manager in the Lianyungang branch as well as Branch Office Manager and President of their Xinpu branch. From September 1988 to July 1993, Mr. Pang taught at Jiangsu Province Haizhou Normal College. Mr. Pang has significant expertise in import and export trading settlements, business and personal loans, as well as stock exchange functions. Mr. Pang has been certified as Senior Financial Managerial Talent by Bank of China and a member of the Outstanding Talent Bank and Reserve Talent Bank of Jiangsu Branch of Bank of China. Mr. Pang obtained a Masters Degree in Economic and Management in June 2004 and a Bachelors Degree in Chinese Language and Literature from Educational University of Jiangsu Province in June 1993.

Mr. Ma is a co-founder and as served as Chairman of Henan Chaoyang Steel Co., Ltd. since the company's inception in July 2003. From 2001 until 2003, Mr. Ma served as the Chairman of Henan Xintai Aluminum Industry Co., Ltd. From 1993 until 2003, Mr. Ma served as the Chairman of Zhengzhou Great Wall Cables Plant. Mr. Ma obtained an Associate's Degree in Metallurgical Industry from the Metallurgical Industry School of Henan Province.

Commenting on the appointment, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are extremely pleased to appoint these distinguished gentlemen to our board as independent directors. As we position the company for the future and seek to list our company's shares on an exchange, their independent voices in our corporate governance will be critical to our future success. Each member brings a wealth of knowledge in key aspects of financial, metallurgical and industrial management and we look forward to benefiting from their guidance as we grow our company for the benefit of the shareholders."

Further details regarding China Armco Metals including these appointments are included in its Form 8-K with the Securities and Exchange Commission.

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and is entering into the metal recycling business through the construction of a facility on 22 acres of land capable of processing one million metric tons of scrap metal on an annual basis. China Armco Metals maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. China Armco Metals product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Beginning in the fourth quarter of 2009, China Armco Metals expects to begin operations in its steel recycling and scrap metal recycling business. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position China Armco Metals as one of the top 10 largest recyclers of scrap metal in China. China Armco Metals estimates the recycled metal market as 70 million metric tons annually.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our ability to successfully complete construction of our proposed scrap steel recycling facility, or, even if constructed, our ability to operate the proposed recycling facility at expected capacity levels and at a profit.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

 
Contact:
China Armco Metals, Inc.
Gary Liu
U.S. Representative
954-363-7333
ir@armcometals.com

Commenting on the contract, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are extremely pleased with the strong sales efforts we have made in the third quarter. We worked diligently with this new customer to deliver this order and hope to secure additional orders in the future. Expanding our customer base is critical as we build for future growth and we expect our sales efforts will continue to gain momentum in the coming months."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the Company's acquisition of 22 acres of land for the construction and operation of a one million ton per year shredder and recycler of metals. The Company maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. The Company's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Beginning in the fourth quarter 2009, the Company expects to begin operations in its steel recycling and scrap metal supply. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position the Company as one of the top 10 largest recyclers of scrap metal in China. ARMCO estimates the recycled metal market as 70 million metric tons.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

Representatives for Armco's management team will discuss Armco's overall business operations and corporate strategy as well as meet in scheduled sessions with institutional investors. If you would like more detailed information on the conference, the presentation, or one-on-one meeting schedules at the conference please contact a Rodman & Renshaw representative or visit www.RodmanandRenshaw.com. Participation is by invitation and registration is mandatory.

Rodman & Renshaw Capital Group, Inc., through its subsidiaries, engages in investment banking business. It offers corporate finance services focusing on various public and private equity products, which include private investment in public equity, registered direct offerings, private placements, and public offerings, as well as provides Collateralized Acquisition Pool, a product used to facilitate a targeted acquisition. The company also provides strategic advisory services, which include identifying and evaluating acquisition targets or acquirers; providing valuation analyses; evaluating and proposing financial and strategic alternatives; rendering fairness opinions; advising on timing, structure, and pricing of transaction; assisting in negotiating and closing a transaction; advising on the sale process; and assisting in preparing a memorandum or other sales materials. In addition, it provides merchant banking and asset management services. The company is headquartered in New York, New York.

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the Company's acquisition of 22 acres of land for the construction and operation of a 1-million ton per year shredder and recycler of metals. The Company maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. The Company's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Beginning in the fourth quarter 2009, the Company expects to begin operations in its steel recycling and scrap metal supply. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position the Company as one of the top 10 largest recyclers of scrap metal in China. ARMCO estimates the recycled metal market as 70 million metric tons.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc. is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: Our ability to successfully complete construction of our proposed scrap steel recycling facility, or, even if constructed, our ability to operate the proposed recycling facility at expected capacity levels and at a profit.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

 
Contact:
China Armco Metals, Inc.
Gary Liu
954-363-7333
ir@armcometals.com

Management anticipates it will commence operations at its 1 million ton recycling facility in December of 2009. It is anticipated that the metal recycled by Armet will be sold for use in the production of steel within China. China is currently the largest producer and consumer of steel in the world.

Kexuan Yao, Chairman and CEO of China Armco Metals, Inc., commented, "We are very excited to have completed construction of our Metal Recycling facility and look forward to the installation of the shredding equipment in October of this year. We anticipate the facilities testing will be completed in November and look forward to launching full operations of this one million metric ton facility in December of 2009."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the Company's acquisition of 22 acres of land for the construction and operation of a 1-million ton per year shredder and recycler of metals. The Company maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. The Company's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Beginning in the fourth quarter 2009, the Company expects to begin operations in its steel recycling and scrap metal supply. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position the Company as one of the top 10 largest recyclers of scrap metal in China. ARMCO estimates the recycled metal market as 70 million metric tons.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: Our ability to successfully complete construction of our proposed scrap steel recycling facility, or, even if constructed, our ability to operate the proposed recycling facility at expected capacity levels and at a profit.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

 
Contact:
China Armco Metals, Inc.
Gary Liu
U.S. Representative
954-363-7333
ir@armcometals.com

Armco is engaged in China in the sale and distribution of metal ore and non-ferrous metals to the metal refinery industry in China. Armco supplies a range of raw materials and scrap metals for various metal refining and steel manufacturing industries. Armco maintains customers throughout China which include steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. Armco's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet.

Commenting on this agreement, Mr. Ross Friedman, Commercial Trading Director of CDII Trading, Inc., stated, "We are excited to have forged this relationship and to begin sourcing metals and metal ore for Armco. We look forward to a long relationship with Armco and are working diligently to secure reliable long term sources for Armco and its end customers in China. We are very encouraged by the potential opportunities before us to source various metals for Armco and believe additional transactions will close in the coming months as we aggressively build this business."

About China Direct Industries, Inc.

China Direct Industries, Inc. (NASDAQ: CDII - News), is a U.S. owned, rapidly growing holding company operating in China in two core business segments, pure magnesium production and distribution and distribution of basic materials in China. China Direct Industries also provides advisory services to China based companies in competing in the global economy. Headquartered in Deerfield Beach, Florida, China Direct Industries operates 10 subsidiaries throughout China. This infrastructure creates a platform to expand business opportunities globally while effectively and efficiently accessing the U.S. capital markets. For more information about China Direct Industries, please visit http://www.cdii.net.

DISCLOSURE NOTICE:

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Direct Industries, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our expectations regarding our ability to secure long term sources of metal ore, completion of the initial shipment of copper ore and development of the business relationship with Armco in the future.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008 and our reports on Form 10-Q.

    -   2nd Quarter 2009 Revenue Reaches $22.5 Million, a 71.2% Increase from
        2nd Quarter 2008

    -   2nd Quarter 2009 Net Income Increases to $3.37 Million, a 82.2%
        Increase from 2nd Quarter 2008

    -   2nd Quarter Diluted EPS Climbs to $0.33 on 10.1 Million Shares as
        Compared to $0.24 on 7.6 Million Shares

Financial Highlights

Revenue for the second quarter ended June 30, 2009 increased by 71.2% to $22.5 million compared to revenue of $13.01 million in the second quarter ended June 30, 2008. The increase in revenue was mainly attributable to increased sales from its metals distribution business in China as demand for metal ore rose significantly. Net income for the second quarter of 2009 was $3.37 million compared to $1.85 million in the second quarter of 2008. This increase was attributable to an improving pricing environment in metal ore in China coupled with the positive effects of China's November 2008 economic stimulus package. On a diluted basis, earnings per share for the second quarter of 2009 were $0.33 on 10.1 million common shares outstanding compared to $0.24 in the second quarter of 2008 on 2.5 million fewer shares.

The strong overall performance for the first six months of 2009 was largely driven by significant growth in our metals distribution business leading to record sales of $27.9 million for the first six months of 2009 compared to $22.79 million for the same period in 2008. Gross Profit for the first six months of 2009 was $4.63 million compared to $2.1 million for the first 6 months of 2008 period and net income was $3.5 million compared to $2.5 million which included a one-time gain of $1.2 million from a contract termination. On a diluted basis, earnings per share for the first six months of 2008 were $0.34 on 10.1 million common shares outstanding as compared to $0.38 in the same period in 2008 on 2.5 million fewer shares.

Balance Sheet

At June 30, 2009, total assets were $38.13 million, an increase of over 30% from the $28.82 million at December 31, 2008. At June 30, 2009 total current assets reached $25.52 million and working capital was approximately $6.15 million. Shareholder equity reached $18.76 million with 10.1 million common shares outstanding up from $15.29 million at December 31, 2009.

Commenting on the second quarter results, Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc., stated, "We are extremely pleased with the strong performance of our operations in the first half of 2009. Our sales efforts in the second quarter benefited from a strong rebound in several key metal markets. We believe this momentum will continue in the coming quarters and we intend to make every effort to improve our operating results further. We believe our expanded credit lines, coupled with the anticipated launch of our scrap metal recycling facility later this year places the company in the strongest financial position in its history and poised for an extended period of exceptional growth for the benefit of our shareholders."

About China Armco Metals, Inc.

China Armco Metals, Inc. (OTC BB:CNAM.OB - News) is engaged in China in the sale and distribution of metal ore and non-ferrous metals to the metal refinery industry in China. Armco supplies a range of raw materials and scrap metals for various metal refining and steel manufacturing industries. Armco maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. Armco's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Armco also intends to enter into the steel recycling industry by constructing a steel recycling facility with initial recycling capacity of 1 million tons of steel scrap annually.

                  CHINA ARMCO METALS, INC. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS

                                                     June 30,   December 31,
                                                       2009         2008
                                                  ------------- -------------
                                                    (Unaudited)
    ASSETS
    CURRENT ASSETS:
      Cash                                        $    801,120  $  3,253,533
      Pledged deposits                               1,723,980             -
      Accounts receivable, net                      15,568,549    16,722,307
      Inventories                                    1,968,646       197,402
      Advances on purchases                          2,563,809     3,680,872
      Deposits on future construction                2,210,493
      Prepayments and other current assets             684,240       379,452
                                                  ------------- -------------

        Total Current Assets                        25,520,837    24,233,566

    PROPERTY, PLANT AND EQUIPMENT, net              10,510,443     2,377,816

    LAND USE RIGHTS, net                             2,102,691     2,208,902
                                                  ------------- -------------

          Total Assets                            $ 38,133,971  $ 28,820,284
                                                  ------------- -------------
                                                  ------------- -------------

    LIABILITIES AND STOCKHOLDERS' EQUITY
    CURRENT LIABILITIES:
      Forward foreign currency exchange
       contracts                                  $    103,083  $          -
      Loans payable                                          -     2,914,345
      Accounts payable                              15,604,831     6,694,534
      Advances from stockholder                         60,468       236,595
      Customer deposits                              2,306,681     2,613,653
      Taxes payable                                    483,271     1,039,312
      Accrued expenses and other current
       liabilities                                     812,193        32,899
                                                  ------------- -------------

        Total Current Liabilities                   19,370,527    13,531,338

          Total Liabilities                         19,370,527    13,531,338

    STOCKHOLDERS' EQUITY:
      Preferred stock, $0.001 par value;
       1,000,000 shares authorized; none issued
       or outstanding                                        -             -
      Common stock, $0.001 par value, 74,000,000
       shares authorized, 10,104,449 and
       10,092,449 shares issued and outstanding,
       respectively                                     10,104        10,092
      Additional paid-in capital                     6,978,076     6,942,588
      Retained earnings                             11,464,463     7,967,064
      Accumulated other comprehensive income           310,801       369,202
                                                  ------------- -------------

        Total Stockholders' Equity                  18,763,444    15,288,946
                                                  ------------- -------------

        Total Liabilities and Stockholders'
         Equity                                   $ 38,133,971  $ 28,820,284
                                                  ------------- -------------
                                                  ------------- -------------



                  CHINA ARMCO METALS, INC. AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (UNAUDITED)

                             For the Three Months        For the Six Months
                                    Ended                      Ended
                           June 30,      June 30,      June 30,      June 30,
                              2009          2008          2009          2008
                      --------------------------- ---------------------------

    NET REVENUES      $ 22,537,814  $ 13,014,476  $ 27,895,672  $ 22,789,813

    COST OF GOODS SOLD  18,415,683    12,137,404    23,262,918    20,683,123
                      --------------------------- ---------------------------

    GROSS PROFIT         4,122,131       877,072     4,632,754     2,106,690

    OPERATING EXPENSES:
      Selling expenses     385,103        20,899       412,396        31,513
      General and
       administrative
       expenses            285,960       124,533       592,601       341,441
                      --------------------------- ---------------------------

        Total
         operating
         expenses          671,063       145,432     1,004,997       372,954
                      --------------------------- ---------------------------

    INCOME FROM
     CONTINUING
     OPERATIONS          3,451,068       731,640     3,627,757     1,733,736
                      --------------------------- ---------------------------

    OTHER (INCOME)
     EXPENSE:
      Interest income      (45,018)            -       (45,018)            -
      Interest expense     119,120        97,336       137,156        97,336
      Import and export
       agency income       (47,244)            -       (47,244)            -
      Gain from
       contracts
       termination               -    (1,233,751)            -    (1,233,751)
      Loss on forward
       foreign currency
       contracts           (12,079)        6,809       (12,079)       19,739
      Other (income)
       expense              66,945      (115,612)       97,172      (122,712)
                      --------------------------- ---------------------------

        Total other
         (income)
         expense            81,724    (1,245,218)      129,987    (1,239,388)
                      --------------------------- ---------------------------

    INCOME FROM
     CONTINUING
     OPERATIONS BEFORE
     INCOME TAXES        3,369,344     1,976,858     3,497,770     2,973,124

    INCOME TAXES
     (BENEFIT)                (716)      127,312            74       385,965
                      --------------------------- ---------------------------

    NET INCOME           3,370,060     1,849,546     3,497,696     2,587,159

    OTHER COMPREHENSIVE
     INCOME:
      Foreign currency
       translation gain
       (loss)              (31,956)      133,683       (58,401)      313,873
                      --------------------------- ---------------------------

    COMPREHENSIVE
     INCOME           $  3,338,104  $  1,983,229  $  3,439,295  $  2,901,032
                      --------------------------- ---------------------------
                      --------------------------- ---------------------------

    NET INCOME PER
     COMMON SHARE -
     BASIC AND
     DILUTED:
      - Continuing
       operations     $       0.33  $       0.26  $       0.34  $       0.38
      - Discontinued
       operations             0.00          0.00          0.00          0.00
                      --------------------------- ---------------------------
      - Total net
       income per
       common share   $       0.33  $       0.26  $       0.34  $       0.38
                      --------------------------- ---------------------------
                      --------------------------- ---------------------------

        Weighted
         Common Shares
         Outstanding -
         basic and
         diluted        10,097,449     7,606,000    10,096,538     7,606,000
                      --------------------------- ---------------------------
                      --------------------------- ---------------------------

    See accompanying notes to unaudited consolidated financial statements



                  CHINA ARMCO METALS, INC. AND SUBSIDIARIES

              CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

                                                     For the       For the
                                                   Six Months    Six Months
                                                      Ended         Ended
                                                     June 30,      June 30,
                                                       2009          2008
                                                  ------------- -------------
    CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                    $  3,497,696  $  2,587,159
    Adjustments to reconcile net income to net cash
     provided by operating activities
      Depreciation expenses                             20,735             -
      Amortization expense                              35,732        44,263
      Loss from disposal of property and equipment           -           248
      Changes in operating assets and liabilities:
        Accounts receivable                            690,662       772,075
        Inventories                                  3,209,227    (6,402,636)
        Advance on purchases                         1,107,393    (2,464,797)
        Prepayments and other current assets          (318,882)     (463,238)
        Other assets                                    22,028             -
        Forward foreign exchange contracts swap              -        19,739
        Accounts payable                             8,914,385     3,326,338
        Customer deposits                             (298,422)    1,093,284
        Taxes payable                                 (555,156)      409,805
        Accrued expenses and other
         current liabilities                           757,291       521,846
                                                  ---------------------------

    NET CASH PROVIDED BY (USED IN)
     OPERATING ACTIVITIES                           17,082,689      (555,914)

    CASH FLOWS FROM INVESTING ACTIVITIES:
      Cash received from reverse acquisition                 -        11,506
      Proceeds from release of pledged deposits              -       164,572
      Payment made towards pledged deposits         (1,710,880)            -
      Deposits toward future construction           (2,210,493)            -
      Purchases of property and equipment           (8,173,902)       (4,338)
      Purchase of land use right                        76,080             -
                                                  ---------------------------
    NET CASH USED IN INVESTING ACTIVITIES          (12,019,195)      171,740

    CASH FLOWS FROM FINANCING ACTIVITIES:
      Proceeds from forward foreign
       exchanage contracts                             103,071             -
      Repayment of loans payable                    (2,914,345)    1,487,265
      Amounts received from (paid to)
       related parties                              (5,140,394)     (919,332)
      Proceeds from exercise of warrants               400,000             -
      Exercise of warrants                              35,500             -
                                                  ---------------------------

    NET CASH PROVIDED BY FINANCING ACTIVITIES       (7,516,168)      567,933

    EFFECT OF EXCHANGE RATE CHANGES ON CASH                261        26,315
                                                  ---------------------------

    NET CHANGE IN CASH                              (2,452,413)      210,074

    Cash at beginning of period                      3,253,533       232,286
                                                  ---------------------------

                                                  ---------------------------
    Cash at end of period                         $    801,120  $    442,360
                                                  ---------------------------
                                                  ---------------------------

    SUPPLEMENTAL DISCLOSURE OF CASH FLOWS
     INFORMATION:
                                                  ---------------------------
      Interest paid                               $     18,036  $      3,449
                                                  ---------------------------
                                                  ---------------------------
      Taxes paid                                  $          -  $          -
                                                  ---------------------------
                                                  ---------------------------

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations: Our belief that the Chinese economy is on the road to recovery, our ability to grow our distribution business and improve our operating results, our ability to obtain sufficient capital to fund our planned expansion and construction of a scrap steel recycling facility and our ability to successfully complete construction of our proposed scrap steel recycling facility, or, even if constructed, our ability to operate the proposed recycling facility at expected capacity levels and at a profit.

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

--  Revenue for the full year of 2008 of $55.4 million
--  Earnings Per Diluted Share of $0.44 for the full year of 2008

Full Year Financial Results

For the full year of 2008 China Armco generated revenues of $55.4 million as compared to revenue of $75.3 million for the same period in 2007. The performance for the full year of 2008 was negatively affected by a sharp decline in the prices of metals in the second half of the year in the Company's metal distribution business.

Cost of goods sold for the full year of 2008 were $51.2 million, a decrease of $17.6 million compared to the full year of 2007. Gross margins were 7.5% for the year ended December 31, 2008 versus gross margins of 8.6% in 2007. The decrease in margins was attributable to higher shipping costs in comparison to the price of metals in the second half of the year. The company derives profits from sales of several types of ore. Each type of ore has a target gross margin and when combined produces a blended gross profit margin for the Company.

Operating expenses for the full year of 2008 were $1,250,804 as compared to $1,016,129 for the same period in 2007. The increase is a result of expanded sales operations and additional costs related to increases in staff and construction of its metal recycling facility and costs associated with the Company's efforts as a US-listed public company.

Income taxes were $787,759 for the year ended December 31, 2008 as compared to $0 for the full year of 2007. The Company's China operations are subject to a statutory tax rate of 17.5% and its Hong Kong distribution operations are subject to Hong Kong SAR income taxes as of January 1, 2008.

For the year ended December 31, 2008 net income was $3.3 million as compared to $5.4 million in 2007. On a diluted basis, earnings per share for the full year of 2008 were $0.44 per share based on 7.5 million weighted average common shares outstanding.

Balance Sheet Highlights

At December 31, 2008, total assets were $28.8 million, an increase of over 191% from the $9.9 million at December 31, 2007. This increase was partially attributable to the $7.4 million raised through a private placement of our common stock in July and August of 2008. Substantially all of the net proceeds from the offering will be used to expand the Company's operations into scrap metal production through the construction of a new facility in China. The increased capital will also be used to expand its metals distribution operations. At December 31, 2008, shareholder equity was $15.3 million and total current assets were $24.2 million with working capital of approximately $10.7 million.

Commenting on this financial performance for 2008, Kexuan Yao, China Armco's Chairman and CEO, stated, "Commodities and metal production experienced a dramatic slowdown across all sectors which peaked in the fourth quarter of 2008. These declines impacted our ability to maintain and grow our revenues in that period. The costs of shipping ores as compared to the price of shipments increased dramatically, having a strong negative impact on operating margins, especially in the fourth quarter. Though we were not immune from this downturn and results were below our earlier expectations, we are encouraged by improvements in a number of metal prices in the first few months of 2009. We intend to work diligently to keep our cost structure low enough to weather this economic downturn and position the company for growth as metal markets rebound. We remain committed to entering a new market segment in steel recycling where there is a huge void in production capabilities and strong governmental support for the recycling metals industry in China."

About China Armco Metals, Inc.

China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout the PRC and has entered the recycling business with the Company's acquisition of 22 acres of land for the construction and operation of a 1-million ton per year shredder and recycler of metals. The Company maintains customers throughout China which include the fastest growing steel producing mills and foundries in the PRC. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. The Company's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Beginning in the second quarter 2009, the Company expects to begin operations in its steel recycling and scrap metal supply. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position the Company as one of the top 10 largest recyclers of scrap metal in China. ARMCO estimates the recycled metal market as 70 million metric tons.

Safe Harbor Statement

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, China Armco Metals, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding revenues, net income and earnings. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:

We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended December 31, 2008.

     Contact:
      
     Gary Liu
     U.S. Representative
     954.363.7333 ext. 318