June 24, 2008

China Precision Steel Joins Russell Indexes

SHANGHAI, China, June 23 /Xinhua-PRNewswire/ -- China Precision Steel , a niche precision steel processing company principally engaged in producing and selling high precision cold-rolled steel products, today announced that it is set to join the Russell 3000 Index and Russell Global Index when Russell Investments reconstitutes the index on June 27, 2008, according to a preliminary list of additions posted June 13, 2008 on http://www.russell.com/ .

The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. These indexes are value-weighted and include only common stocks belonging to corporations incorporated in the United States and its territories. The Russell Global Index represents the investable global equity market and its segments comprehensively. It consists of more than 10,000 securities in 63 countries and offers over 300 key sub indexes. The 2008 reconstitution of the Russell Indexes will take place after the market close on June 27, 2008 and the new indexes will be effective for one year.

"We are very pleased to be a part of the Russell 3000 Index and the Russell Global Index. The addition of China Precision Steel to these indexes explains the growing opportunity that the company presents. We are one of the few Chinese steel manufacturers in the niche high end cold rolled carbon steel processing market. Our corporate brand is increasingly being recognized by the investment community in the U.S. stock markets and inclusion in the Russell 3000 and Russell Global further expands our visibility," commented Dr. Wo Hing Li, China Precision Steel's Chairman and CEO. "As a U.S. publicly traded company, we remain committed to building a highly respected brand recognized not only domestically but also internationally."

About Russell

Russell Investments provides strategic advice, world-class implementation, state-of-the-art performance benchmarks and a range of institutional-quality investment products. Russell has more than $213 billion in assets under management as of March 31, 2008, and serves individual, institutional and advisor clients in more than 40 countries. Russell's industry-leading indexes have $4.4 trillion in assets benchmarked to them as of Dec. 31, 2007. Founded in 1936, Russell is a subsidiary of The Northwestern Mutual Life Insurance Company.

About China Precision Steel

China Precision Steel is a niche precision steel processing company principally engaged in the production and sale of high precision cold-rolled steel products and provides value added services such as heat treatment and cutting medium and high carbon hot-rolled steel strips. China Precision Steel produces high precision ultra-thin, high strength (7.5 mm to 0.05 mm) cold- rolled steel products primarily for automotive components, food packaging materials, saw blades and textile needle manufacturing companies in the People's Republic of China. However, China Precision Steel is expanding into overseas markets such as Nigeria, Thailand, Indonesia and the Philippines, and intends to expand into Japan, the European Union and the United States in the future.

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release and oral statements made by China Precision Steel on its conference call in relation to this release, constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding our ability to prepare the company for growth, the Company's planned manufacturing capacity expansion in 2008 and predictions and guidance relating to the Company's future financial performance. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs but they involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which China Precision Steel is engaged; cyclicality of steel consumption including overcapacity and decline in steel prices, limited availability of raw material and energy may constrain operating levels and reduce profit margins, environmental compliance and remediation could result in increased cost of capital as well as other relevant risks not included herein. The information set forth herein should be read in light of such risks. You are urged to consider these factors carefully in evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

   For more information, please contact:     China Precision Steel    Leada Li, CFO    Email: [email protected]     CCG Elite    Crocker Coulson, President    Tel:   +1-646-213-1915    Email: [email protected]    Website: http://www.ccgelite.com/  

China Precision Steel

CONTACT: Leada Li, CFO of China Precision Steel,[email protected]; or Crocker Coulson, President of CCG Elite forChina Precision Steel, +1-646-213-1915, [email protected]

Web site: http://www.ccgelite.com/http://www.russell.com/