American Construction Company Announces $90 million Initial Stage Joint Venture Agreement.

PHOENIX -- American Construction Company (OTCBB: ACNS), which recently acquired General Steel and its 70% ownership in Tianjin Da Qiu Zuang Sheet Metal Co., Ltd., ("DQ") a Chinese-based steel company, today announced an initial stage joint venture agreement with the China Inner Mongolia Baogang Steel Union ("Baotou Steel"). Baotou Steel is listed on the Shanghai Stock Exchange. Founded in 1954 and based in Inner Mongolia, Baotou Steel is a leader in the production of iron and steel in China. It is also a center for R&D for basic materials in the region. The initial stage joint venture will be called Baotou General Plate Company Limited. ACNS will own 51% of the initial stage joint venture through two of its subsidiaries and Baotou Steel will own 49%. The total amount of the investment and the registered capital of the initial stage joint venture is estimated at approximately $90 million. E[acute accent]The initial stage joint venture intends to set up a hot rolling facility in the Kung Du district, Baotou City, Inner Mongolia, to produce steel plates with 3.8 meter width at a capacity of 800,000 tons annually. E[acute accent]Zuo Sheng Yu, Director and President of American Construction and its subsidiary, General Steel, said, "This initial stage joint venture will allow us to continue to expand our operations to meet the growing demand for steel in China. We look forward to cooperating with Baotou Steel to insure our mutual success."

E[acute accent]About The Company

E[acute accent]American Construction Company acquired General Steel and its 70% ownership in its subsidiary, Tianjin Da Qiu Zuang Sheet Metal Co., Ltd., ("DQ") a People's Republic of China limited liability corporation, which is a manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles. Since 1998, it has expanded its operations to six production lines producing 250,000 tons of 0.7-2.0mm hot-rolled carbon steel sheets per year, the largest producer in China, maintaining a 40% market share of all steel plates used in the production of agricultural vehicles in China. In 2003, its sales revenues were over $56 million and its total assets were worth more than $37 million. E[acute accent]This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All readers are encouraged to review the 8-K to be filed in connection with the acquisition discussed above, which outlines risk factors including debt obligations, deal terms and other relevant items. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.