China Gerui Adds New Laminated Steel Production Line at Zhengzhou Facility

China Gerui Advanced Materials Group Limited("China Gerui," or the "Company"), a leading high precision, cold-rolled steel producer in China, today announced the introduction of a new laminated steel processing line at its existing production facilities in Zhengzhou, China. The new laminated steel processing production line is estimated to be completed, tested and to begin commercial production in the second quarter of 2013.

"With the addition of the new laminated steel production line, we are broadening our product mix by providing a value-added, high-margin, cold-rolled steel product," said Mr. Mingwang Lu , Chairman and Chief Executive Officer of the Company. "This new capability is consistent with our strategy to broaden our product offerings and enhance our competitive profile in order to reach more customers with an expanded range of end-use products and materials."

Mr. Lu continued, "We are looking to migrate further up the specialized cold-rolled steel sector value chain with this new specialized steel material and will continue to work on additional product initiatives that involve technologies and end-use applications that appeal to both existing and new customers. We believe that the new laminated steel production line will further solidify our competitive edge as a leading specialized cold-rolled steel materials producer in China."

The new laminated production line will utilize the Company's cold-rolled steel as a raw material to produce a specialized steel material that will be primarily marketed to the industries of food and beverage packaging, electrical appliances, and construction and decoration. These markets are expected to experience continued growth stimulated by rising domestic consumption within the next few years. The new laminated production line is designed to produce up to 30,000 tons per year of laminated steel sheets, although there is room for further capacity expansion pending market demand.

Historically, China's domestic food and beverage industry has relied heavily on imported food-grade metal packing materials. Thus, China's 15th five-year plan encourages domestic development and production of toxic-free, environmentally-friendly, food-grade packing materials. China Gerui's growth strategy of replacing imports with precision, high-end cold-rolled steel products is consistent with the government's goals.

The laminating process requires a strictly controlled manufacturing process to achieve strong adhesion between the laminating film and the cold-rolled steel sheet. The Company expects to produce a highly stable, adaptable and top quality product using the latest quality control instruments under a high-level clean room environment. China Gerui has adopted the advanced technology in this new production line, which also includes standards and guidelines that ensure environmentally-friendly production processes.

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