American Oriental Bioengineering, Inc. Announces Completion of $6,000,000 Private Placement.

HONG KONG -- American Oriental Bioengineering Inc, (OTC BB: AOBO), a rapidly growing company which discovers, develops, manufactures, markets and distributes a broad range of pharmaceutical and nutriceutical products, today announced that it has completed a private placement of the Company's securities, resulting in $6,000,000 of gross proceeds to the Company. The offering consisted of investment units, each comprised of one share of common stock at $1.00, a 3-year warrant to purchase 1/2 share of common stock exercisable at $1.60 and a 3-year warrant to purchase 1 share of common stock exercisable at $0.85.

The offering was completed through Westminster Securities Corporation of New York. The Company expects to use the proceeds of the private placement to expedite the company's ongoing acquisition strategy, for working capital, new product development and general corporate purposes.

"We believe the ongoing process of privatization of state owned pharmaceutical enterprises in China provides us with excellent acquisition opportunities for corporate growth," noted Tony Liu, Chairman and Chief Executive Officer of AOBO. "We are exploring several acquisition opportunities and we believe the funds from this round of financing will allow us to expedite our acquisition strategy."

The securities sold in this offering have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. AOBO has agreed to register the resale of the shares of common stock issued to the investors in this private placement, as well as the shares issuable upon exercise of the warrants.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. (OTC BB: AOBO) is a leading Chinese biotechnology company that uses proprietary processes for producing soybean protein peptide more efficiently than traditional extracting techniques. These techniques are used to manufacture and formulate supplemental and medicinal products. Soybean peptides are used widely in general food, health food products and medicines, among other applications. AOBO also produces Cease-Enuresis Soft Gel, the only Chinese FDA-approved first grade, prescription medicine that is specially formulated to help alleviate bed-wetting and incontinence. The Company is a leading producer of products in both the nutriceutical and pharmaceutical areas in China. For more information, visit http://www.bioaobo.com.

This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks defined in this document and in statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.