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CHONGQING, China, Oct. 14 /PRNewswire-Asia-FirstCall/ --China Redstone Group, Inc. (OTC Bulletin Board:CGPI.ob - News) ("China Redstone" or the "Company"), the largest private provider of cemetery products and services in Chongqing, China, today reported that it sold 1,726 cemetery plots for its fiscal second quarter ending September 30, 2010. The Company also announced that based on its preliminary estimates it expects revenue for its fiscal second quarter to be at least $11.8 million. This compares with revenue of $7 million reported for the second quarter of fiscal 2010, representing an increase of 69.3% year-over-year.

China Redstone sold 613 and 577 cemetery plots in July and August 2010, representing an increase of 56.8% and 34.5% from the same periods last year, respectively.  The average selling price gained momentum throughout the quarter, increasing from $6,524 in July to $6,738 in August to $6,907 in September. The $6,800 average selling price for fiscal second quarter 2011 is approximately 2.0% higher than the average selling price for fiscal first quarter 2011 average and well above the $5,000-$6,250 forecast for the fiscal year ending March 31, 2011.

The following summarizes the Company's recent cemetery plot sales trends:

"We continue to see very strong demand for our products, as evidenced by the 3,580 plots we sold in the first six months of fiscal 2011," stated Mr. Yiyou Ran, Chairman and Chief Executive Officer of China Redstone. "We are especially encouraged by our customers' preference for premium lots, which command selling prices 32.3% higher than non-premium lots. The combination of higher sales, no credit risk and limited working capital needs for our core business position us well to generate significant cash flow growth in 2011 and beyond."

Financial Outlook for Fiscal Year 2011

For the fiscal year ending March 30, 2011, management expects revenues of $40 million, GAAP net income of $19.5 million, and GAAP earnings per share of $1.45, representing an increase of approximately 9.6%, 59.8%, and 9.0%, respectively, from fiscal 2010. Guidance includes projected sales of approximately 7,000 plots sold during fiscal year 2011 with average selling prices of $5,000 to $6,250.

Important note by Xantu: Above mentionned guidance remains unchanged as to previous posting. Given the average selling price staying at $6.800 for the rest of the year and selling 7,000 plots, would result in revenues of $ 47,6 mio iso $40 mio. EPS would probably come in much higher than the 1,45 $/share mentionned above.