American Oriental Bioengineering Announces Opening of First Specialty Store.

HONG KONG -- ''Life Peptide'' Opens in Times Square District of Hong Kong; Features AOB's Soy Bean Peptide Products, Expands Distribution Channel

American Oriental Bioengineering, Inc. (AMEX: AOB), an emerging Chinese company that produces and distributes a broad range of pharmaceutical and nutraceutical products, announced that on August 12, the Company hosted a grand opening for its proprietary retail specialty store called "Life Peptide," located in the Times Square district of Hong Kong. "Life Peptide" will carry American Oriental Bioengineering soy bean peptide products, intending to respond to the growing demand for these products in new markets, such as Hong Kong. Soybean peptide products are sold over-the-counter remedies intending to promote general overall health for potential users and are utilized as a remedy for a variety of common ailments affecting a person's overall health and wellbeing.

In addition to being sold at the "Life Peptide" store, the Company's soy based peptide products will also be offered for sale by other nutraceutical chains commencing on October 15, 2005 including Manning China Resources and Health Plus. The Company expects its soy based peptide products to be on the shelves in approximately 100 stores from such chains.

"This opening of "Life Peptide" exemplifies our strategic business model of increasing the availability of our products to potential customers in under-penetrated and fast growing markets," commented Tony Liu, Chairman and CEO of American Oriental Bioengineering. "This initial move into the Hong Kong market with both our own store and through the distribution channel of other established retailers will increase our customer base with relatively low associated costs and also give us the opportunity to increase sales in the region on a faster basis. We look forward to growing our presence in the region as it becomes a significant contributor to our overall business."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. (AOB) 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. AOB 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.