American Oriental Bioengineering, Inc. Provides Update on the Acquisition of Guangxi Lingfeng Pharmaceutical.

HONG KONG -- American Oriental Bioengineering, Inc. (AMEX: AOB):

-- Marketing Initiatives in Place to Improve Sales

-- Synergies Identified to Expand GLP Margins

-- AOB Engages Ms. Ni Ping as Company Spokesperson

-- Acquisition Expected to Positively Contribute to 2Q06 and Full Year 2006; Revenues, Net Income and EPS 

American Oriental Bioengineering, Inc. (AMEX: AOB), a leading manufacturer and distributor of pharmaceutical and nutraceutical products in China, provides update on the acquisition of Guangxi Lingfeng Pharmaceutical Company Limited (GLP). GLP is a manufacturer of plant-based pharmaceutical products in China, specializing in pediatrics, gynecopathy and medicines for the treatment of digestive and respiratory system illnesses.

"We are pleased to report that the integration of GLP has been progressing according to plan and we believe we have identified several areas where we can improve sales and reduce expenses to drive higher overall efficiency," commented Tony Liu, Chairman and Chief Executive Officer. "Similar to our acquisition of HSPL in September of 2004, where we improved sales by more than 300 percent and gross margins by nearly 20 percent in just over 12 months from the closing, we intend to create incremental value from our acquisition of GLP."

The acquisition of GLP has significantly expanded the plant based product (PBP) portfolio of AOB, contributing 70 potential products to the Company's existing PBP product offering. The acquisition of GLP has also increased AOB's points of distribution, particularly in Southern China, which has enabled the Company to better leverage its entire portfolio of PBP and plant based nutraceutical (PBN) products. GLP's flagship products, known as the Jinji Series, treat gynecological inflammations, such as endometritis and annexitis and are complementary to AOB's Cease Enuresis products for the treatment of bedwetting and nighttime urination.

In an effort to take advantage of its robust product portfolio, AOB has retained Ms. Ni Ping as the Company's official spokesperson. Ms. Ni Ping is a well known actor and television host within China, for her role in "Variety Wonderland", a primetime weekend special airing since 1990 and as the host of "Spring Festival Evening Party" which is estimated to have attracted more than one billion cumulative viewers during her tenure. With a now dedicated marketing budget, available resources and AOB's operational expertise, management's strategy is to improve GLP sales and profits from current levels.

"During the second quarter we will recognize over two months of contribution from GLP and expect the business to positively impact our reported results," Mr. Liu added. "Furthermore, I look forward to updating investors on our progress during our second quarter earnings conference call in August."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. (AOB) is engaged in the development and production of plant-based pharmaceutical products and plant-based nutraceutical products widely distributed throughout 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 contained 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.