American Oriental Bioengineering Inc. Calls Class B Warrants; Receives Approximately $11.2 Million in Gross Proceeds from Call of Class A and Class B Warrants.

HONG KONG -- 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 Sept. 22, 2005, the company delivered a redemption notice with respect to all of its Class B warrants, and as of Oct. 12, all 3 million Class B warrants had been exercised. The company had previously delivered a redemption notice with respect to its Class A warrants and, as announced on Sept. 29, all 7.5 million Class A warrants had been exercised. The Class A and Class B warrants were issued in connection with the private placement that the company completed in November 2004.

The company received, in the aggregate, approximately $11.2 million in gross proceeds from the exercise of the Class A and Class B warrants. Giving effect to such exercise, the company expects to have approximately 50.3 million shares of common stock outstanding on a fully diluted basis.

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 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.