China Green Material Technologies, Inc. to Expand Annual Production Capacity by Nearly 160% to 22,000 Tons

Company to Acquire New Facility and Relocate in May 2010

Feb 25, 2010, 08:30 ET from China Green Material Technologies, Inc.

HARBIN, China, Feb. 25 /PRNewswire-Asia-FirstCall/ -- China Green Material Technologies, Inc. (OTC Bulletin Board: CAGM; "CAGM" or "the Company"), a Chinese leader in developing and manufacturing starch-based biodegradable fast-moving consumer goods packaging, today announced the Company has acquired a new manufacturing facility and plans to relocate in May 2010, expanding its capacity by nearly 160%.

The new facility, located in the Harbin Economic and Technological Development Zone, encompasses approximately 15,000 square meters with 5 production lines and a total capacity of 22,000 tons of finished product compared to the Company's current capacity of 8,800 tons. With this new facility, energy consumption of new equipment will decrease by 30%. Additionally, the new fully automatic packaging line will increase packaging capacity by 200% compared with the original half automatic line, greatly expanding the Company's product capacity overall. The new equipment will also decrease the rejection rate by over 50%, greatly increasing the overall quality and stability of the product and decreasing costs.

Mr. Su Zhonghao, CEO of CAGM, commented, "As a result of the continued increase in market demand for our starch-based biodegradable tableware products, we are taking the appropriate steps to rapidly expand our production capacity to accommodate our growing business. We believe this enhanced, more efficient operating platform ideally positions us to benefit from favorable macro environmental policy and leverages growing customer awareness and preferences for our environmental-friendly products."

About China Green Material Technologies, Inc.

Website: http://www.21cgmt.com

China Green Material Technologies, Inc. (OTCBB: CAGM) is a China-based manufacturer of starch-based biodegradable fast-moving consumer goods packaging. The Company offers various disposable tableware consumer goods, including cups, plates, bowls, knives, forks, and spoons, as well as food package and containers used at groceries and home. Headquartered in Harbin city of China, the Company currently has 128 employees. The Company has developed proprietary biodegradable food packaging materials technologies and applied for two patents.

Safe Harbor Statement

This press release contains certain statements that may include 'forward- looking statements' as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes, expects, anticipate, optimistic, intend, will" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with and available from the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

    For more information, please contact:

     Howard Gostfrand
     American Capital Ventures
     Tel:   +1-305-918-7000
     Email: info@amcapventures.com
     Web:   http://www.amcapventures.com

     Matthew Hayden
     HC International, Inc.
     Tel:   +1-760-613-3695
     Email: Matt.hayden@hcinternational.net
     Web:   http://www.hcinternational.net

SOURCE China Green Material Technologies, Inc.



RELATED LINKS

http://www.21cgmt.com