China Carbon Reports Record Sales and Earnings for 2008

NEW YORK, April 20, 2009 (GLOBE NEWSWIRE) -- China Carbon Graphite Group, Inc.
(OTCBB:CHGI), China's largest wholesale supplier of fine grain and high purity
graphite announced its financial results for fiscal year ended December 31,
2008. China Carbon is also one of the nation's top three producers of specialty
carbon and graphite products.

Fiscal Year 2008 Highlights

-- Net revenues increased 7.67% to a record $27.3 million
-- Gross profit increased 36.41% to a record $6.7 million
-- Comprehensive income increased 11.8% to a record $6.03 million
-- Net income increased 11.08% to a record $3.98 million
-- Net income available to common shareholders (after a one-time,
non-cash deemed preferred stock dividend of $854,300) was
$3.13 million
-- Diluted earnings per share were $0.21
-- Basic earnings per share excluding the one-time, non-cash
deemed preferred stock dividend were $0.32
"This was a record year for our Company driven by increased demand from both new
and existing customers. We are extremely pleased with the significant increase
in gross profit, which was the result of a shift of our production focus from
low margin graphite electrodes to fine grain graphite and high purity graphite
which generate higher gross margins," commented Mr. Donghai Yu, CEO of China
Carbon Graphite Group.

"The Company was required to close its factory for almost two months because of
a government mandated shutdown due to the Beijing Olympics during August 2008.
The production of all of the Company's products ceased during this period. The
process to produce finished goods takes up to six months. Therefore, the
shutdown affected sales in the fourth quarter of 2008 as well as the first
quarter of 2009.

"We expect 2009 to be a very strong year for China Carbon. We plan to pursue
acquisitions of China based carbon companies with similar revenues that will
allow us to enter the highly profitable nuclear graphite market. At this time
China has over 25 nuclear reactors under construction and each reactor requires
approximately 10 metric tons of nuclear graphite at an average cost of US$150
million. China Carbon has the ability to become the world's low cost producer of
nuclear graphite. The acquisition plan will increase earnings and strengthen our
leadership in the specialty graphite market.

"Additionally, we expect to benefit from China's Stimulus Plan by receiving bank
loans at a low interest rate. We will use the bank loans to expand the
production capacity at the current plant in Inner Mongolia," concluded Yu.

Full Year 2008 Financial Results

Revenue for fiscal year 2008 totaled $27.3 million compared to sales of $25.36
million for fiscal year 2007. This increase resulted from our marketing efforts
both to develop new customers and make follow-on sales to existing customers,
although our sales decreased in the fourth quarter reflecting the closure of
Company's plant facilities for almost two months for the Olympics in August 2008
as part of the Chinese government's program to reduce air pollution during that
period. This shutdown reduced our production in the third quarter and therefore
affected sales in the fourth quarter 2008 because it takes up to six months to
produce graphite products.

Gross margin increased from 19.36% in 2007 to 24.53% in 2008. The improvement in
gross profit margin was due to increased sales of higher margin products - fine
grain graphite and high purity graphite.

Selling expenses increased from $124,241 in 2007 to $504,884 in 2008. The
increase was due to the effort to market our high margin products - fine grain
graphite and high purity graphite.

General and administrative expense increased from $1.12 million in 2007 to $1.95
million in 2008. This increase was largely the result of an increase in our bad
debt expense of approximately $200,000 and an increase in our allowance for bad
debts of $860,000. One customer accounted for approximately $450,000 of these
charges.

Net income for 2008 was $3.98 million compared to $3.59 million for 2007.

As a result of the automatic conversion of our 3% convertible notes into shares
of series A preferred stock and warrants, we incurred a preferred stock deemed
dividend of $854,300, representing the intrinsic value of the beneficial
conversion feature of the series A preferred stock resulting from the warrant
issuance. The deemed preferred stock dividend is a one time, non-cash charge
which did not affect our operations or cash flow in 2008.

About China Carbon Graphite Group, Inc.

China Carbon Graphite Group, through its affiliate, Xingyong Carbon Co., Ltd.,
manufactures carbon and graphite based products in China. The company is the
largest wholesale supplier of fine grain and high purity graphite in China and
one of the nation's top overall producers of carbon and graphite products. Fine
grain graphite is widely used in smelting for colored metals and rare-earth
metal smelting as well as the manufacture of molds. High purity graphite is used
in metallurgy, mechanical industry, aviation, electronic, atomic energy,
chemical industry, food industry and a variety of other fields. In September
2007, the company was approved and designated by Ministry of Science &
Technology as a "National Hi-tech Enterprise." Of the 400 plus carbon graphite
producers in China, China Carbon is the only non-state-owned company to receive
this honor. For more information, visit http://www.chinacarboninc.com.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the
business of the Company and its subsidiary companies. These forward-looking
statements are often identified by the use of forward-looking terminology such
as "believes," "expects" or similar expressions. Such forward-looking statements
involve known and unknown risks and uncertainties that may cause actual results
to be materially different from those described herein as anticipated, believed,
estimated or expected. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release.

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CONTACT: Capital Group Communications
Investor Relations
Mark Bernhard
415-332-7202
mark@capitalgc.com

For the Company:
China Carbon Graphite Group, Inc.
Ting Chen, CFO
ir@chinacarboninc.com