China Architectural Engineering Awarded $3.8 Million Contract for Renovation of China's National Museum.

Management Expects Latest Series of Contract Wins and Rapidly Growing New Business Pipeline to Position Company for Record Year in Revenues and Earnings

ZHUHAI, China & LOS ANGELES -- China Architectural Engineering, Inc. (CAE) (AMEX:RCH), a leader in the design, engineering, fabrication and construction of structural exterior cladding systems, today announced that it has been awarded a contract worth approximately $3.8 million to renovate the exterior of the landmark National Museum of China in Beijing.

The project is expected to be completed by mid-2009. Revenues from it will be recognized in the last three quarters of 2008 and the first two quarters of 2009. Under the terms of the project, CAE will design, engineer, fabricate and install curtain walls for the renovation of the National Museum, located on Tiananmen Square.

CAE Expects Additional Multi-Million Dollar Contracts for Related Work to National Museum

In addition, CAE said it has been awarded a contract for curtain walls in a new section of the National Museum. The value of this contract is in the final government approval stage and is expected to be announced shortly.

"This project marks yet another milestone for CAE," said China Architectural Engineering Chairman and CEO, Ken Y. Luo. "The work we expect to perform on the National Museum of China may be our most prestigious project yet in our home market of China. It will further enhance the company's reputation and raising its profile as a pace-setter in design and engineering.

"Our project is part of a renovation and expansion effort that will transform the National Museum into the most significant landmark on the east side of the Tiananmen Square," Mr. Luo continued. "With a total exhibition area of well over two million square feet, it will be transformed into one of the largest and finest museums in the world. Having completed three other award-winning, high-profile landmark projects on the other three corners of the Tiananmen Square, CAE is very proud to leave its imprint on the most prestigious projects in the historic and cultural center of China's capital. These projects also reflect CAE's unrivaled expertise and reputation in the curtain wall industry in China and worldwide."

The renovation and expansion project at the National Museum in Beijing is located along Chang'an Avenue, east of Tiananmen Square. Upon its completion, CAE will be represented by four landmark projects at each corner of the Square. The other three are CAE's UNESCO award-winning Meridian Gate Exhibition Hall of the Palace Museum (completed in 2005), the National Grand Theater and the renovation project of Chairman Mao Zedong Memorial Hall (both completed in 2007).

CAE Expects 2008 to Represent a Breakthrough Year in Both Revenues and Earnings

The Company also expects that its recent series of large multi-million dollar contracts, many of which will be recognized in the current year, positions CAE towards achieving a record year in both revenues and earnings. This is further supported the Company's rapidly growing backlog figures, amongst other metrics. The Company noted that CAE's backlog has grown substantially since January 2008 - when it released a backlog figure of over $100 million. A more current backlog figure is expected to be announced shortly.

To be added to China Architectural Engineering's investor lists, please contact Haris Tajyar at [e-mail] or at 818-382-9702.

About China Architectural Engineering

China Architectural Engineering, Inc. (AMEX:RCH), which began operations in 1992, has maintained a leading position in the global commercial construction industry by providing timely, high-quality, reliable, fully integrated & cost-effective service solutions to our clients utilizing specialized technical expertise in the design, engineering, fabrication and construction of structural exterior cladding systems. It specializes in high-end curtain wall systems (including glass, stone & metal curtain walls), roofing systems, steel construction systems, eco-energy saving building conservation systems and related products, for public works and commercial real estate projects.

CAE has worked with world-renowned architects and building engineers from China and other countries and has completed nearly one hundred large, complex and unique projects throughout China, Australia & Southeast Asia, including numerous award-winning landmark buildings in many of Asia's major cities. It is now looking to capitalize on its industry-leading expertise to expand aggressively beyond China into some of the hottest construction markets in the world, such as Middle East, Central Asia and Eastern Europe. It also plans to set up operations in New York to expand in the U.S. and Canadian markets

For further information on China Architectural Engineering please visit www.caebuilding.com.

Forward Looking Statements: In addition to historical information, the statements set forth above include forward-looking statements that may involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Such risks and uncertainties include, but are not limited to, uncertainty of contract negotiations and payments under existing contracts, the Company's dependence on government contracts, changes in the laws of the PRC that affect the Company's operations, fluctuation and unpredictability of costs related to the Company's products and services, the Company's dependence on the steel and aluminum markets, reduction or reversal of the Company's recorded revenue or profits due to "percentage of completion" method of accounting and expenses and costs associated with the issuance of convertible bonds. The forward-looking statements are also identified through use of the words "believe," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including regulatory approval requirements and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's reports and other filings with the Securities and Exchange Commission.