China Architectural Engineering Announces Results from the Successful Completion of Fourth Closed Beta Testing of 'Warring State'

CHANGZHOU, China, Nov. 22, 2010 /PRNewswire-Asia-FirstCall/ -- China Architectural Engineering, Inc. (Nasdaq: CAEI or the Company), a self-developer of online games and a provider of high-end building envelope architectural systems, today announced that its subsidiary Shanghai ConnGame Network Ltd. ("ConnGame"), has successfully completed the fourth closed beta testing ("CB4") of its first massive multi-player online role-playing game ("MMORPG") "Warring State".

From November 5, 2010 to November 8, 2010, thousands of top players and industry experts participated in CB4, providing professional feedback and valuable user experience suggestions, as they comprehensively tested the game for the first time through the public internet network access.  Meanwhile, the Company collected and analyzed critical servers and clients' data to stress test load stability and support for future large scale open testing and commercialization.  Prior to CB4, the Company had conducted other internal closed beta tests that provided a solid foundation for CB4, the final test before opening to public users.

Mr. Alan Leung, Chief Executive Officer of China Architectural Engineering, commented, "We are very excited with the successful completion of CB4 for "Warring State", marking another step towards eventual commercialization. We are highly appreciative of the enthusiastic participation by many of the industry experts and their insightful critiques and suggestions.  We are thrilled to be receiving extensive and positive media coverage, including popular gaming Websites such as 17173,  Tencent, Netease, 52pk, among China's other dedicated gaming websites, in anticipation of the eventual public release of "Warring State".  I'm most proud of the fantastic user's comments posted in local media, as exemplified by the following excerpts:

• In 'Warring State', one can indeed touch history that took place a few thousand years ago(1)
• 'Warring State' has a wealth of realistic outdoor scenes, and the stunning visual effects offer an immersive and spectacular game experience;(2)
• Amongst the many online games in the market, 'Warring State' is in no shortage of bright spots: different instances, vivid and interesting tasks;(3)
• As a close beta, "Warring State" has sparked the interests of the PRC game players.(4)"

Mr. Leung continued, "'Warring State' is currently in its final adjustment and modification phase.  We are preparing related sales and marketing activities for the eventual public launch in China, and are also initiating its overseas authorization process. Based on the successful completion of CB4, we are confident that 'Warring State' is in the process of preparing for an eventual commercial launch in a near future."

About China Architectural Engineering

China Architectural Engineering, Inc. is a self-developer of online games and provider of high-end building envelope architectural systems. Through its subsidiary, Shanghai ConnGame Network, the Company leverages its innovative game engines, scalable development platforms, and accomplished production teams to develop and operate MMORPGs. The first game "Warring State" focuses on China's historic themes and the second game "Revolution" focuses at Western fantasy style. The Company also provides design, engineering, fabrication and installation services of high-end curtain wall systems, roofing systems, steel construction systems, and eco-energy systems.

Forward-Looking Statements

In addition to historical information, the statements set forth above may 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. Actual results could differ materially from the expectations contained in forward-looking statements as a result of risks and uncertainties, including, but not limited to, difficulties related to integration and management of the combined operations of the Company of the company and ConnGame; entrance into the highly competitive MMORPG online game industry and difficulties in developing, testing and launching games; the Company's ability to integrate the management, personnel and operations of the Company and ConnGame; required Company payments under the waiver agreement and ability to maintain the conditions of the bondholder waiver and dilution from the potential adjustment to the conversion price of the bonds for non-compliance with the waiver; the Company's ability to accurately estimate and control contract costs and timelines; the Company's ability to timely complete and meet performance standards; identification and remediation of the Company's deficiencies and weaknesses in its internal controls over financial reporting, potential claims or litigation that may result from the occurrence of restatements, ability to identify and secure debt, equity, and/or other financing required to continue the operations of the Company; reduction or reversal of the Company's recorded revenue or profits due to "percentage of completion" method of accounting and expenses; increasing provisions for bad debt related to the Company's accounts receivable; fluctuation and unpredictability of costs related to our products and services; adverse capital and credit market conditions; expenses and costs associated with its convertible bonds, regulatory approval requirements and competitive conditions; and various other matters, many of which are beyond our control. 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.