American Oriental Bioengineering's Marketing Initiatives Enhance Results of Recently Acquired Heilongjiang Songhuajiang Pharmaceutical Limited; New Subsidiary Generates $2.5 Million in New Purchase Orders.

BEIJING -- American Oriental Bioengineering, Inc. (OTCBB: AOBO), a rapidly growing Chinese company which produces and distributes a broad range of pharmaceutical and nutraceutical products, announced today that recent marketing initiatives for Heilongjiang Songhuajiang Pharmaceutical Limited (HSPL), its recently acquired subsidiary, have generated $2.5 million in new orders. For more than 50 years, HSPL has played a leading role in the Chinese pharmaceutical industry. Its focus on R&D resulted in proprietary products such as Shuanghuanglian Lyophilized Powder Injection. The product is an antiviral medicine and a most highly regarded herbal products approved by the China FDA for the treatment of SARS.

The Company recently held a series of promotional meetings in eight provinces and municipalities throughout China, including Heilongjiang, Hebei, Henan, Anhui, Xingjaing, Hunan, Guangdong, Guangxi, Beijing, Tianjing. In these meetings, AOBO's technical and sales and marketing staff hosted agencies, distributors and customers to enhance awareness of HSPL's products. Over 4,150 distributors attended.

"Since acquiring HSPL we have taken several significant initiatives to expand its revenue base," said Tony (Shujun) Liu, AOBO's Chief Executive Officer. "As a private company, we have begun several marketing programs to capitalize on the extensive investments that HSPL has made in product development. We have also increased our customer base through expanded distribution channels, as demonstrated by the strong attendance at our recent meetings. We believe that HSPL's unique product line affords AOBO a competitive advantage in the market, and we plan to capitalize on many of its innovative products through further marketing activities in the second half of the year."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. (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 nutriceuticals and pharmaceuticals 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 readers are encouraged to review the 8-K to be filed in connection with the acquisition discussed above, which outlines risk factors including debt obligations, deal terms and other relevant items. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the companies, are expressly qualified by the cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the companies disclaim any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.