American Oriental Bioengineering Elects Eileen Brody to its Board of Directors.

HONG KONG -- Third Independent Director Enables Company to Meet American Stock Exchange Requirement for Independent Board

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 it has elected Eileen Brody to its Board of Directors. Ms. Brody becomes the third independent director for the Company, which meets the American Stock Exchange's listing requirement for Board independence. She will also serve as the Chairperson of the Company's Audit Committee. Ms. Brody is an experience senior retail executive, with 21 years of experience helping retailers increase growth and profitability.

From 1997 to 2004, Ms. Brody was Vice President of Merchandising and the General Merchandising Manager for Carter's Childrenwear's Retail Division, a division of The William Carter Company. There, she was in charge of the merchandising P&L for the 175 store nationwide chain. She helped lead a turnaround effort, which produced record sales and profitability for seven consecutive years. While there, she assisted the company in its successful New York Stock Exchange Initial Public Offering.

"I am pleased to welcome Eileen to our Board of Directors," said Tony (Shujun) Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, Inc. "Her proven track record in helping other emerging companies grow should prove invaluable as we continue to expand organically and via acquisition. AOBO is well positioned to continue to generate strong revenue and earnings growth, as acquisitions such as Heilongjiang Qitai Pharmaceutical Limited, a leading Chinese distributor of pharmaceuticals and Heilongjiang Songhuajiang Pharmaceutical Co., Ltd., which has been making well-known pharmaceuticals products in China for fifty years, compliment our rapidly growing existing businesses. We look forward to using Eileen's experience and expertise to help AOBO meet its aggressive growth objectives in the future."

"I am honored to be elected to the Board of Directors for American Oriental Bioengineering Incorporated," said Ms. Brody. "The Company is at a wonderfully opportune juncture to experience dramatic growth within China and expand into new frontiers around the world. With the Company's strong strategic vision and proven leadership, the future is very bright. I am looking forward to adding my expertise to many facets of the business throughout this exciting time in its history."

Prior to joining Carter's, Ms. Brody was the Director of Strategic Planning for Bob's Stores, a division of Melville Corporation. There, she led a strategic project team which helped turn the company's declining comparable same store sales into growth through enhanced merchandising and marketing strategies. Previously, she spent three years at the company as Director of Merchandise Planning, Distribution and Replenishment, helping to open new stores and improve relationships with business partners. She also held various others operations and management roles during her five years with the company.

From 1983 to 1990 she was a Senior Manager and a CPA at the accounting firm of KPGM Peat Marwick. Ms. Brody received her Undergraduate and MBA degrees from Pace University and a second MBA from the Harvard Graduate School of Business. She received the Fitzie Foundation Award in 1991, where she was chosen by the Harvard Business School and Fitzie Board of Trustees as the HBS Woman Best Demonstrating Exemplary Leadership, Academic Excellence and Commitment to Community.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a leading Chinese developer and distributor of plant based pharmaceutical and nutraceutical products using natural plants and organic soybeans as raw materials.

The company has two product lines with over 100 products. The first category covers plant-based pharmaceuticals including Shuanghuanglian Lyophilize Powder Injectible, and Cease-Enuresis Soft Gel. The second category covers nutraceuticals including a series of soy protein peptide products and health supplements. The products can be delivered in forms of injections, tablets, capsules, powder, and oral liquids.

American Oriental Bioengineering, Inc.'s product offering is based on three proprietary technologies -- a unique process to extract soybean peptide more efficiently than using traditional techniques. Cease-Enuresis Soft Gel is currently the only first category prescription natural plant medicine to treat bed-wetting and incontinence approved by the Chinese Food and Drug Administration. Shuanghuanglin Lyophilized Powder Injectable is one of the only two Chinese government approved Huangqi etc. herbs-based anti-viral injection in China. 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.