(30 December 2008) China National Building Material Company Limited ("CNBM" or the “Company”; stock code: 3323) is pleased to announce that a large modern gypsum board production line with an annual capacity of 30 million square meters constructed by its subsidiary BNBM commenced pilot production recently in Guang`an, Sichuan Province, the hometown of Mr. Deng Xiaoping.

BNBM`s Guang`an production line of gypsum boards has an annual production capacity of 30 million square meters, is a gypsum board production line with the most advanced technology, the largest scale, the best energy saving and emission reduction level in Southwest China, even in West China. The production line fully adopted the desulphuric gypsum from Guang`an Power Station as its raw materials, with 300,000 tonnes of industrial waste being treated per year. As a result, coal consumption per square metre reduced from 1.8KG to 1.0KG..

A principal from BNBM said: “The Dragon branded gypsum boards produced by
BNBM has long enjoyed admirable market reputation and a leading market share in
Southwest China. BNBM will further consolidate the brand influence and market appeal of Dragon branded products in the southwest region by taking the opportunity of the pilot production of the production line.”

Before the commissioning of the project, Mr Liu Qibao, Secretary of Sichuan Provincial Party Committee, led the relevant officers in charge of economic works in Sichuan Province to visit BNBM`s gypsum board industrial base in Guang`an 24 November. During the inspection, Mr Liu Qibao showed great interest in the fiber-cement board external wall system adopted by the Guang`an project, a new external wall board system featuring specially energy-saving, heat-preserving and environmental on friendly. Upon carefully inspection of the cross section and having the understanding of the product performance of the fiber-cement board, he instructed that this new of building material featuring energy-saving, earthquake-resisting and environmental friendly functions shall be widely used in post-disaster reconstruction projects. He also assigned the provincial economic commission to specifically implement the task.

About China National Building Material Company Limited
China National Building Material Company Limited was incorporated in the PRC on March 28, 2005. On March 23, 2006, the Company`s shares were listed on the Mai Board of The Stock Exchange of Hong Kong Limited. CNBM is mainly engaged in cement, lightweight building materials, glass fiber and composite material and engineering services businesses. It is the largest cement producer in the Huaihai Economic Zone and Southeast Economic Zone of the PRC, the largest gypsum board producer in the PRC, the largest glass fiber producer in Asia, the largest manufacturer of 1.5 MW-level rotor blades in the PRC, and a major international engineering firm that designs production lines of float glass and NSP (new suspension preheater) cement and/or provides EPC services in the PRC.