Second Quarter 2010 Financial Performance

Revenue in the second quarter of 2010 increased 8.5% year over year to $77.3 million from $71.2 million, reflecting continued demand for the Company's core prescription products.

    -- Revenue from pharmaceutical products increased 9.1% to $63.8 million
       from $58.4 million in the second quarter of 2009. Revenue from
       prescription pharmaceutical products increased 20.8% to $30.4 million
       from $25.2 million in the prior year period, primarily due to the
       increase sales of the Jinji capsule, SHL powder, YYQH capsule and the
       expansion of CCXA generic pharmaceutical products in the rural market.
       The overall increase in sales was supported by our continuous marketing
       efforts, increase in new products offerings, as well as expanding
       coverage in the rural market. OTC pharmaceutical products generated
       $33.4 million in revenue during the second quarter of 2010, compared to
       $33.3 million in the prior year period.
    -- Nutraceutical products generated revenue of approximately $9.9 million
       in the second quarter of 2010, up 4.3% from $9.5 million in the prior
       year period, reflecting increased sales of soybean milk as the market
       expanded.
    -- The Company generated $3.6 million from its distribution business, Nuo
       Hua, in the second quarter of 2010. An increase of 10.0% was mainly
       attributed to Nuo Hua's expanding market coverage.

Gross profit in the second quarter of 2010 was $39.8 million, compared to $41.6 million in the second quarter of 2009. Gross margin was 51.5%, compared to 58.4% in the prior year period and 52.5% in the prior quarter reflecting a greater proportion of generic product sales in the rural market. Further, the increased purchase prices of certain raw materials increased the cost of sales also contributed to lower gross profit.

Operating income in the second quarter of 2010 was $9.1 million, compared to $18.0 million in the prior year period. Selling and marketing expenses increased 22.4% to $11.5 million from $9.4 million in the prior year period, and advertising expense increased 18.5% to $9.2 million in the second quarter of 2010 from $7.8 million in the prior year period. General and administrative expenses increased 28.1% to $5.2 million from $4.0 million in the prior year period. Research and development expenses increased to $3.3 million from $0.8 million in the prior year period, reflecting the Company's continued efforts in research and development activities. Our research and development activities consist of near term, middle team and long term stages which contribute to both our current and future business strategies.

Net income attributable to controlling interest for the second quarter of 2010 was $5.1 million, compared to $12.6 million in the prior year period. The Company's net income attributable to controlling interest was $0.07 per diluted share, compared to $0.16 per diluted share in the same period of 2009.

Six Month Financial Performance

Revenue for the six months ended June 30, 2010 increased 11.7% to $131.0 million from $117.3 million in the first six months of 2009. During the same time period, gross profit was $68.1 million, compared to $70.0 million in the first six months of 2009. Operating income in the first six months of 2010 was $15.5 million, compared to $28.9 million in the first six months of 2009. Net income attributable to controlling interest for the first six months of 2010 was $8.2 million, compared to $19.7 million in the prior year period. In the first six months of 2010, net income per diluted share was approximately $0.11.

Balance Sheet

As of June 30, 2010, the Company had $96.4 million in cash and cash equivalents, and generated approximately $7.7 million of operating cash flow during the first half of 2010. Working capital was $147.0 million as of June 30, 2010, reflecting an increase of 12.3% from $130.9 million as of December 31, 2009.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "AOBO's prescription product division ramped up very quickly in the second quarter of 2010. The double digit growth is a result of our previous investment in new products as well as continued strong demand for existing branded products. During the past quarter, we continued to execute our R&D-driven strategy, which consumed 4.2% of total revenue. Our focus on upgrading existing products and developing new ones will proactively prepare AOB for both near term and long term growth. Furthermore, we continued to strengthen and integrate AOBO's unified mega brand through an effective advertising campaign as well as fortify our presence in rural areas with advanced sales network expansion. Meanwhile, we consistently monitored our inventory of raw materials and assiduously controlled costs, which partially offset the two prevalent influences of rising raw material costs and labor costs. These combined efforts are aimed to help AOBO more effectively adjust to policy changes and capitalize on emerging opportunities."

Conference Call

The Company will hold a conference call at 8:00 am ET on Monday, August 9, to discuss its results. Listeners may access the call by dialing 1-800-573- 4842 or 1-617-224-4327 for international callers, access code: 10613898. A webcast will also be available through AOB's website at http://www.bioaobo.com . A replay of the call will be available through August 16, 2010. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 35043398.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Safe Harbor Statement

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether because of new information, future events, or otherwise.

           AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                 (UNAUDITED)

                         THREE MONTHS ENDED          SIX MONTHS ENDED
                              JUNE 30                     JUNE 30
                         2010          2009         2010           2009

    Revenues          $77,296,212   $71,222,037 $131,045,980   $117,299,227
    Cost of sales      37,455,860    29,594,923   62,968,907     47,255,261

    GROSS PROFIT       39,840,352    41,627,114   68,077,073     70,043,966

    Selling and
     marketing
     expenses          11,505,462     9,396,129   17,481,688     14,607,631
    Advertising
     costs              9,217,247     7,779,936   15,965,717     13,347,293
    Research and
     development
     costs              3,250,882       809,584    6,029,691      1,559,382
    General and
     administrative
     expenses           5,158,104     4,026,425    9,924,590      8,417,126
    Depreciation and
     amortization       1,622,989     1,623,556    3,219,947      3,256,142

    Total operating
     expenses          30,754,684    23,635,630   52,621,633     41,187,574

    INCOME FROM
     OPERATIONS         9,085,668    17,991,484   15,455,440     28,856,392

    Equity in
     earnings (loss)
     from
     unconsolidated
     entities            (170,799)     (173,258)     (53,326)       264,536
    Interest
     expense, net       1,371,246     1,620,069    2,937,031      3,199,338
    Other expenses,
     net                   30,039        16,329       17,792        114,938

    INCOME BEFORE
     INCOME TAXES       7,513,584    16,181,828   12,447,291     25,806,652
    Income tax          2,395,850     3,735,558    4,211,780      6,205,322

    NET INCOME          5,117,734    12,446,270    8,235,511     19,601,330

    Net loss
     attributable to
     non-controlling
     interest               6,476       123,068       11,876        119,517

    NET INCOME
     ATTRIBUTABLE TO
     CONTROLLING
     INTEREST           5,124,210    12,569,338    8,247,387     19,720,847

    OTHER
     COMPREHENSIVE
     INCOME             1,843,654        21,945    1,936,503        513,282

    COMPREHENSIVE
     INCOME            $6,967,864   $12,591,283  $10,183,890    $20,234,129

    EARNINGS PER
     COMMON SHARE
    Basic                   $0.07         $0.17        $0.11          $0.27
    Diluted                 $0.07         $0.16        $0.11          $0.26

    WEIGHTED AVERAGE
     SHARES
     OUTSTANDING
    Basic              74,743,986    74,582,920   74,680,327     74,560,809
    Diluted            75,857,073    88,815,593   75,502,489     86,939,711



           AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                  (UNAUDITED)

                                                    JUNE 30,     DECEMBER 31,
                                                      2010          2009
    CURRENT ASSETS
    Cash and cash equivalents                     $96,433,832   $91,126,486
    Restricted Cash                                 1,103,535     3,298,379
    Accounts and notes receivable, net             66,767,659    57,504,454
    Inventories, net                               19,016,578    10,015,711
    Advances to suppliers and prepaid
     expenses                                       5,937,021    13,901,180
    Deferred tax assets                               550,535       824,451
    Other current assets                            1,347,639     1,246,647
            Total Current Assets                  191,156,799   177,917,308

    LONG-TERM ASSETS
    Property, plant and equipment, net             95,445,470    95,468,265
    Land use rights, net                          152,594,995   153,604,196
    Other long term assets                          7,967,784     7,909,086
    Construction in progress                       29,324,123    28,975,386
    Other intangible assets, net                   16,329,103    18,695,554
    Goodwill                                       33,164,121    33,164,121
    Investments in and advances to
     equity investments                            57,441,048    57,325,887
    Deferred tax assets                               143,781       134,268
    Unamortized financing costs                     2,823,549     3,287,694
           Total Long-Term Assets                 395,233,974   398,564,457

                TOTAL ASSETS                     $586,390,773  $576,481,765

    LIABILITIES AND SHAREHOLDERS' EQUITY

                                                   JUNE 30,      DECEMBER 31,
                                                     2010           2009
    CURRENT LIABILITIES
    Accounts payable                              $11,477,039    $7,497,143
    Notes payable                                   1,103,535     3,392,575
    Other payables and accrued expenses            16,935,522    22,320,757
    Taxes payable                                     605,024       947,338
    Short-term bank loans                           8,959,257    10,384,368
    Current portion of long-term bank
     loans                                             60,629        60,108
    Other liabilities                               4,842,631     2,199,280
    Deferred tax liabilities                          173,496       172,473
         Total Current Liabilities                 44,157,133    46,974,042

    LONG-TERM LIABILITIES
    Long-term bank loans, net of current
     portion                                          710,598       743,957
    Deferred tax liabilities                       15,652,960    15,961,465
    Unrecognized tax benefits                       3,871,701     2,746,561
    Convertible Notes                             115,000,000   115,000,000
        Total Long-Term Liabilities               135,235,259   134,451,983
             TOTAL LIABILITIES                    179,392,392   181,426,025

    EQUITY
    SHAREHOLDERS' EQUITY
    Preferred stock, $0.001 par value;
     2,000,000 shares authorized;
     1,000,000 shares issued and
     outstanding at at June 30, 2010
     and December 31, 2009, respectively                1,000         1,000
    Common stock, $0.001 par value;
     150,000,000 shares authorized;
     78,580,138 and 78,321,419 shares
     issued and outstanding at June
     30, 2010 and December 31,
     2009,respectively.                                78,580        78,321
    Common stock to be issued                         181,500       388,000
    Prepaid forward repurchase contract           (29,998,616)  (29,998,616)
    Additional paid-in capital                    201,806,789   199,829,921
    Retained earnings (the restricted
     portion of retained earnings is
     $23,757,901 at June 30 and
     December 31, 2009.)                          199,421,141   191,173,754
    Accumulated other comprehensive
     income                                        34,986,727    33,050,224
         Total Shareholders' Equity               406,477,121   394,522,604
    Non-controlling Interest                          521,260       533,136
                TOTAL EQUITY                      406,998,381   395,055,740
        TOTAL LIABILITIES AND EQUITY             $586,390,773  $576,481,765



    For more information, please contact:

     ICR, LLC
     Christine Duan or Ashley Ammon
     Tel: +1-646-277-1200

NEW YORK, May 10 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE:AOB - News), ("the Company" or "AOBO"), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products, today announced financial results for the first quarter ended March 31, 2010.

First Quarter 2010 Financial Performance

Revenue in the first quarter of 2010 increased 16.7% year over year to $53.7 million from $46.1 million, reflecting continued demand for the Company's core prescription and OTC pharmaceutical products.

    -- Revenue from pharmaceutical products increased 17.8% to $40.9 million
       from $34.7 million in the first quarter of 2009, driven by increased
       demand for the Shuanghuanglian ("SHL") Injection Powder, BOKE and CCXA
       pharmaceutical products, as well as the newly-launched products such as
       YuYeQingHuo Capsules. Revenue from prescription pharmaceutical products
       increased 29.3% to $20.9 million from $16.2 million in the prior year
       period, reflecting a year over year increase in sales from the
       prescription Jinji capsule, SHL powder, Boke and CCXA prescription
       products. The overall increase in sales was also supported by
       continuous marketing efforts, an increase in new product offerings, and
       expansion of coverage to previously unaddressed rural markets.  OTC
       pharmaceutical products generated $19.9 million in revenue during the
       first quarter of 2010, in comparison to $18.5 million in the prior year
       period, reflecting increased sales of our Boke and CCXA products as a
       result of improved recognition of those products.
    -- Nutraceutical products generated revenue of approximately $9.7 million
       in the first quarter of 2010, up 8.5% from $8.9 million in the prior
       year period, reflecting increased sales of new beverage products
       launched in the second quarter of 2009.
    -- The Company generated $3.2 million from its distribution business, Nuo
       Hua, in the first quarter of 2010. An increase of 29.5% was mainly
       attributed to the Nuo Hua's expanding market coverage.

Gross profit in the first quarter of 2010 was $28.2 million, compared to $28.4 million in the first quarter of 2009. Gross margin was 52.5%, compared to 61.7% in the prior year period, reflecting continued revenue mix shift to CCXA's generic product sales as well as increasing raw material prices.

Operating income in the first quarter of 2010 was $6.4 million, compared to $10.9 million in the prior year period. Selling and marketing expenses increased 14.7% to $6.0 million from $5.2 million in the prior year period, and advertising expense increased 21.2% to $6.7 million in the first quarter of 2010 from $5.6 million in the prior year period. General and administrative expenses increased 8.6% to $4.8 million from $4.4 million in the prior year period. Research and development expenses increased to $2.8 million from $0.7 million in the prior year period. This reflects the Company's continuing efforts to invest in the centralized R&D centre inBeijing.

Net income attributable to controlling interest for the first quarter of 2010 was $3.1 million, compared to $7.2 million in the prior year period. The Company's net income attributable to controlling interest was $0.04 per diluted share, compared to $0.10 per diluted share in the same period of 2009.

Balance Sheet

As of March 31, 2010, the Company had $99.0 million in cash and cash equivalents, including restricted portions, and generated approximately $5.8 million of operating cash flow during the first quarter of 2010. Working capital was $136.9 million as of March 31, 2010, reflecting an increase of 4.6% from $130.9 million as of December 31, 2009.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are very satisfied with our performance in the first quarter, despite the challenging global economic environment and the changing Chinese regulatory environment. During the past quarter, we continued to invest heavily in R&D, which consumed 5% of total revenue, in order to upgrade our existing products and develop new proprietary products to lay a solid foundation for AOBO's near term and long term growth. Meanwhile, we continued to fortify our market position, strengthen our presence in rural areas, and diversify our business operations through cost control, advertising campaigns, and sales network expansion. We are confident that we will achieve initial success from the above combined efforts in the latter part of this year."

Conference Call

The Company will hold a conference call at 8:00 am ET on Monday, May 10, to discuss its results. Listeners may access the call by dialing 1-866-804-6927 or 1-857-350-1673 for international callers, access code: 92995812. A webcast will also be available through AOB's website at http://www.bioaobo.com . A replay of the call will be available through May 17, 2010. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 50942560.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2010, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

    For more information, please contact:

     Integrated Corporate Relations, Inc.
     Ashley M. Ammon
     Tel:   +1-646-277-1200



           AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (UNAUDITED)

                                                   MARCH 31,    DECEMBER 31,
                                                      2010          2009
    CURRENT ASSETS
    Cash and cash equivalents                     $95,787,301   $91,126,486
    Restricted Cash                                 3,209,381     3,298,379
    Accounts and notes receivable, net             53,503,601    57,504,454
    Inventories, net                               19,838,535    10,015,711
    Advances to suppliers and prepaid
     expenses                                       5,525,812    13,901,180
    Deferred tax assets                               590,330       824,451
    Other current assets                            1,494,931     1,246,647
            Total Current Assets                  179,949,891   177,917,308

    LONG-TERM ASSETS
    Property, plant and equipment, net             94,614,699    95,468,265
    Land use rights, net                          152,805,027   153,604,196
    Other long term assets                          7,930,112     7,909,086
    Construction in progress                       30,111,567    28,975,386
    Other intangible assets, net                   17,480,990    18,695,554
    Goodwill                                       33,164,121    33,164,121
    Investments in and advances to
     equity investments                            57,461,382    57,325,887
    Deferred tax assets                               138,746       134,268
    Unamortized financing costs                     3,055,621     3,287,694
           Total Long-Term Assets                 396,762,265   398,564,457

                TOTAL ASSETS                     $576,712,156  $576,481,765

    LIABILITIES AND SHAREHOLDERS' EQUITY

                                                   MARCH 31,    DECEMBER 31,
                                                      2010          2009

    CURRENT LIABILITIES
    Accounts payable                              $10,660,316    $7,497,143
    Notes payable                                   3,297,568     3,392,575
    Other payables and accrued expenses            14,935,485    22,320,757
    Taxes payable                                     352,439       947,338
    Short-term bank loans                          10,386,039    10,384,368
    Current portion of long-term bank
     loans                                             60,404        60,108
    Other liabilities                               3,140,176     2,199,280
    Deferred tax liabilities                          172,017       172,473
         Total Current Liabilities                 43,004,444    46,974,042

    LONG-TERM LIABILITIES
    Long-term bank loans                              727,731       743,957
    Deferred tax liabilities                       15,737,755    15,961,465
    Unrecognized tax benefits                       3,300,625     2,746,561
    Convertible Notes                             115,000,000   115,000,000
        Total Long-Term Liabilities               134,766,111   134,451,983
             TOTAL LIABILITIES                    177,770,555   181,426,025

    EQUITY
    SHAREHOLDERS' EQUITY
    Preferred stock, $0.001 par value;
     2,000,000 shares authorized;
      1,000,000 shares issued and
       outstanding at March 31, 2010
       and December 31, 2009, respectively              1,000         1,000
    Common stock, $0.001 par value;
     150,000,000 shares authorized;
       78,321,439 shares issued and
        outstanding at March 31, 2010
        and December 31, 2009                          78,321        78,321
    Common stock to be issued                         485,000       388,000
    Prepaid forward repurchase contract           (29,998,616)  (29,998,616)
    Additional paid-in capital                    200,408,156   199,829,921
    Retained earnings (the restricted
     portion of retained earnings is
       $23,757,901 at both March 31 and
        December 31, 2009)                        194,296,931   191,173,754
    Accumulated other comprehensive
     income                                        33,143,073    33,050,224
         Total Shareholders' Equity               398,413,865   394,522,604
    Non-controlling Interest                          527,736       533,136
                TOTAL EQUITY                      398,941,601   395,055,740
        TOTAL LIABILITIES AND EQUITY             $576,712,156  $576,481,765



           AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                 (UNAUDITED)

                                                     THREE MONTHS ENDED
                                                         MARCH 31,
                                                   2010              2009

    Revenues                                   $53,749,768       $46,077,190
    Cost of sales                               25,513,047        17,660,338

    GROSS PROFIT                                28,236,721        28,416,852

    Selling and marketing expenses               5,976,226         5,211,502
    Advertising costs                            6,748,470         5,567,357
    Research and development costs               2,778,809           749,798
    General and administrative expenses          4,766,486         4,390,701
    Depreciation and amortization
     expenses                                    1,596,958         1,632,586

    Total operating expenses                    21,866,949        17,551,944

    INCOME FROM OPERATIONS                       6,369,772        10,864,908

    Equity in earnings from
     unconsolidated entities                       117,473           437,794
    Interest expense, net                       (1,565,785)       (1,579,269)
    Other income (expenses)                         12,247           (98,609)

    INCOME BEFORE INCOME TAXES                   4,933,707         9,624,824
    Income tax                                   1,815,930         2,469,764

    NET INCOME                                   3,117,777         7,155,060

    Net loss (income) attributable to
     non-controlling interest                        5,400            (3,551)

    NET INCOME ATTRIBUTABLE TO
     CONTROLLING INTEREST                        3,123,177         7,151,509

    OTHER COMPREHENSIVE INCOME                      92,849           491,337

    COMPREHENSIVE INCOME                        $3,216,026        $7,642,846

    EARNINGS PER COMMON SHARE
       Basic                                         $0.04             $0.10
       Diluted                                       $0.04             $0.10

    WEIGHTED AVERAGE SHARES OUTSTANDING
       Basic                                    74,697,044        74,538,593
       Diluted                                  89,460,953        86,917,603

NEW YORK, Dec. 18 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB), ("the Company" or "AOBO"), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products, today announced that 158 of the Company's drugs have been included in China's National (Medical) Insurance Catalog (the "2009 NIC"). Of these, 82 are categorized as Class A drugs and 76 are categorized as Class B drugs. Most importantly, Jinji Capsule, AOBO's best selling national branded product, has been added to the 2009 NIC since its last publication in 2004.

The 2009 NIC was released by China's Ministry of Human Resources and Social Security on November 30, 2009 as part of China's healthcare reform. According to the Chinese government, ninety percent of China's citizens will be covered by a universal healthcare system by the end of calendar 2010. As China's official drug reimbursement list, the 2009 NIC features 2,151 drugs, which are categorized as Class A (fully covered) or B (partially covered). All drugs are classified into three categories: 1) Western Chemical Drugs (349A+791B); 2) modernized Traditional Chinese Medicine (TCM) (154A+833B); and 3) TCM decoction pieces. The implementation of the plan is required immediately for Class A drugs and by 3/31/10 for Class B drugs.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are very honored that a total of 158 drugs produced by our five subsidiaries have been included in China's National Insurance Catalog. Of these, 82 products are fully reimburseable as Class A drugs and 76 qualify for partial reimbursement as Class B drugs. We are especially pleased about the inclusion of our best-performing and flagship women's health product, Jinji Capsule, in the NIC. Jinji Capsule is a widely recognized product to treat gynecological inflammation, including endometritis, annexitis and pelvic inflammations. Based on government data, 147 million women in China suffer from gynecological inflammation, and we believe that partial reimbursement for this drug will boost sales of Jinji Capsule nationwide."

Mr. Liu continued, "The 2009 NIC is a vital guideline for the expanding universal healthcare system, which aims to cover the vast majority of the population. The NIC will be fully implemented in 2010, making more drugs affordable and greatly expanding the addressable pharmaceutical market in China. We believe that the inclusion of our products in the NIC, in addition to further increasing brand recognition, will hasten our expansion into key therapeutic areas."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

Third Quarter 2009 Financial Performance

Revenue in the third quarter of 2009 increased 11.7% to $78.8 million from $70.6 million in the third quarter of 2008, reflecting continued demand for the Company's core pharmaceutical and nutraceutical products. Revenue from pharmaceutical products increased 6.3% to $66.0 million from $62.1 million in the third quarter of 2008. Revenue from prescription pharmaceutical products increased 22.7% to $29.8 million during the third quarter of 2009, reflecting a year over year increase in sales from prescription formulated Jinji capsule, Boke and CCXA products, which offset declines in sales of Shuanghuanglian Injection Powder ("SHL"). The overall increase in sales was also supported by continuous marketing efforts, an increase in new product offerings, as well as expansion of coverage to previously unaddressed rural markets. OTC pharmaceutical products generated $36.2 million in revenue during the third quarter of 2009, in comparison to $37.8 million in the prior year's period, primarily reflecting lower sales performance of Jinji Yimucao, a drug included in China's Essential Drug list, as distributors reduced orders in anticipation of pricing uncertainty related to healthcare reform. Nutraceutical products generated revenue of approximately $9.2 million in the third quarter of 2009, up 8.7% from $8.5 million in the prior year period, reflecting increased sales of new beverage products launched in the beginning of 2009. The Company generated $3.6 million from its distribution business in the third quarter of 2009.

Gross profit in the third quarter of 2009 was $44.1 million compared to $47.2 million in the third quarter of 2008. Gross margin was 56.0%, compared to 66.8% in the prior year period, reflecting continued revenue mix shift to CCXA's generic product sales, increasing raw material prices and lower margin distribution business from Nuo Hua.

Operating income in the third quarter of 2009 was $15.0 million compared to $21.6 million in the third quarter of 2008. Selling and marketing expenses increased 23.2% to $12.2 million from $9.9 million in the prior year period. The increase primarily reflects increased marketing and promotional initiatives related to enhancing prescription product sales. Advertising expense was $9.0 million in the third quarter of 2009, compared to $9.9 million in the prior year period, reflecting a greater focus on promotional activities and direct sales efforts. General and administrative expenses increased 37.7% to $6.5 million from $4.7 million in the prior year period, primarily driven by expenses related to improving production efficiency and testing equipment and technology upgrades as a result of more stringent GMP manufacturing standards.

Net income attributable to controlling interest for the third quarter of 2009 was $10.0 million, compared to $16.3 million in the prior year period. Excluding $0.9 million of interest expense on convertible securities and $0.2 million of amortized financing costs related to the Company's outstanding convertible notes, the Company's net income attributable to controlling interest was $11.2 million, or $0.13 per diluted share. In the third quarter of 2008, net income per diluted share was approximately $0.21.

Nine Months Ended September 30, 2009 Financial Performance

Revenue for the nine months ended September 30, 2009 increased 16.5% to $196.1 million from $168.4 million in the first nine months of 2008. During the same time period, gross profit increased slightly by 0.5% to $114.2 million from $113.6 million in the first nine months of 2008. Operating income in the first nine months of 2009 was $43.9 million compared to $51.9 million in the first nine months of 2008. Net income attributable to controlling interest for the first nine months of 2009 was $29.7 million, compared to $39.2 million in the prior year period. Excluding $3.8 million of interest expense on convertible securities and $0.7 million of amortized financing costs related to the Company's outstanding convertible notes, the Company's net income attributable to controlling interest was $34.2 million, or $0.39 per diluted share. In the first nine months of 2008, net income per diluted share was approximately $0.50.

Balance Sheet

As of September 30, 2009, the Company had $115.9 million in cash and generated approximately $44.3 million of operating cash flow during the first nine months of 2009.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "Despite the tough business environment we are currently experiencing, we are pleased with our third quarter performance as we continued to enhance our diversified product portfolio and pursue further vertical integration. We are witnessing uncertainty around product pricing related to healthcare reform, and this has caused select disruption in purchasing patterns. Nonetheless, we continue to actively monitor the regulatory landscape and we will adapt our business strategy accordingly. For example, the potential inclusion of our Jinji products in the upcoming national insurance catalog, along with our marketing capabilities, extensive distribution platform, diversified product offering and ongoing rural expansion, should help us navigate the challenging sales environment related to healthcare reform. We continue to drive revenue growth and consistently generate cash despite the uncertain regulatory environment, and we appreciate the hard work and contributions by our entire team."

Restatement of Certain Historical Results

During the review of its third quarter 2009 operating results, the Company identified historical accounting errors in: (i) the calculation of stock based compensation, (ii) the recognition of deferred tax liabilities of certain acquired assets and (iii) the provision of deferred tax liabilities on undistributed earnings of foreign subsidiaries. The accounting errors have resulted in the misstatement of certain balance sheet and income statement items and the cumulative net earnings since 2006. The errors did not result from any fraud or intentional misconduct and the Company undertook a review to determine the total amount of the errors and the accounting periods in which the errors occurred. As a result, the Company chose to restate its previously reported financial statements.

The Company has restated its consolidated balance sheets and the related consolidated statements of income, statements of shareholders' equity and statements of cash flows as of and for the years ended December 31, 2008, 2007 and 2006 as reported in its amended annual report on Form 10K/A for the fiscal year ended December 31, 2008. The restated financial information for each of the three interim quarterly periods for 2008 and 2007 were also included in the amended annual report on Form 10-K/A for the fiscal year ended December 31, 2008.

The effects of the restatement on selected income statement line items for the years ended December 31, 2008 and 2007 are as follows:

    Increase/(Decrease) in income
     statement line items                          2008               2007

    General and administrative                   $838,190           $466,954
    Income before income tax                     (838,190)          (466,954)
    Income tax                                    (91,916)        (1,042,151)
    Net income attributable to common
     shareholders                                (746,274)           575,197
    Net income per common share
     attributable to common shareholders
     - basic                                          --               0.01
    Net income per common share
     attributable to common shareholders
     - diluted                                       $--              $0.01

The cumulative effects of the restatement on selected balance sheet line items as of December 31, 2008 and 2007 are as follows:

    Increase/(Decrease) in balance sheet
     line items                                     2008              2007

    Goodwill                                    $4,620,895        $4,620,895
    Deferred tax assets                                 --            15,297
    Deferred tax liability - current              (667,095)         (109,733)
    Deferred tax liability - non current         1,551,743         4,050,444
    Accumulated other comprehensive
     income                                      2,602,180          (346,670)
    Retained earnings                             (171,077)          575,197
    Additional paid-in capital                   1,305,144           466,954

Conference Call

The Company will hold a conference call at 8:00 am ET on Tuesday, November 17, 2009 to discuss third quarter 2009 results. Listeners may access the call by dialing 1-866-770-7051 or 1-617-213-8064 for international callers, access code: 89648638. A webcast will also be available through AOB's website at http://www.bioaobo.com .

A replay of the call will be available through November 24, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 58148119.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

           American Oriental Bioengineering, Inc. and Subsidiaries
     Condensed Consolidated Statements of Income and Comprehensive Income
                                 (Unaudited)

                              THREE MONTHS ENDED      NINE MONTHS ENDED
                               SEPTEMBER 30,             SEPTEMBER 30,
                              2009         2008         2009          2008
                                       As Restated                As Restated

    REVENUES              $78,818,666  $70,593,949  196,117,893  $168,372,552
    COST OF GOODS SOLD     34,687,505   23,402,407   81,942,766    54,808,490

    GROSS PROFIT           44,131,161   47,191,542  114,175,127   113,564,062

    Selling and marketing  12,245,746    9,938,877   26,853,377    22,656,477
    Advertising             9,013,087    9,913,728   22,360,380    21,760,300
    General and
     administrative         6,457,734    4,690,793   15,981,195    14,235,806
    Depreciation and
     amortization           1,409,399    1,024,436    5,118,588     3,012,107

    Total operating
     expenses              29,125,966   25,567,834   70,313,540    61,664,690

    INCOME FROM
     OPERATIONS            15,005,195   21,623,708   43,861,587    51,899,372

    EQUITY IN EARNINGS
     (LOSS) FROM
     UNCONSOLIDATED
     ENTITIES                (563,608)      49,417     (299,072)     (591,650)
    INTEREST INCOME
     (EXPENSE), NET        (1,106,805)  (1,143,013)  (4,306,143)   (1,156,782)
    OTHER (EXPENSE), NET      (49,165)      91,986     (164,103)     (264,515)

    INCOME BEFORE INCOME
     TAXES                 13,285,617   20,622,098   39,092,269    49,886,425
    INCOME TAXES            3,257,771    4,339,045    9,463,093    10,655,299

    NET INCOME             10,027,846   16,283,053   29,629,176    39,231,126

    NON-CONTROLLING
     INTEREST                    (651)           0      118,866             0

    NET INCOME ATTRIBUTE
     TO CONTROLLING
     INTEREST              10,027,195   16,283,053   29,748,042    39,231,126

    OTHER COMPREHENSIVE
     INCOME
    Foreign currency
     translation gain,
     net of tax               142,118      646,405      655,400    15,743,396
    OTHER COMPREHENSIVE
     INCOME, NET OF TAX       142,118      646,405      655,400    15,743,396

    COMPREHENSIVE INCOME  $10,169,313  $16,929,458   30,403,442   $54,974,522

    NET INCOME PER COMMON
     SHARE
    BASIC                       $0.13        $0.22         0.40         $0.51
    DILUTED                     $0.13        $0.21         0.39         $0.50

    WEIGHTED AVERAGE
     NUMBER OF COMMON
     SHARES OUTSTANDING
    BASIC                  74,636,155   75,101,869   74,592,447    77,164,602
    DILUTED                88,868,828   85,417,621   88,825,120    80,553,647




                  American Oriental Bioengineering, Inc. and Subsidiaries
                     Condensed Consolidated Balance Sheets (Unaudited)

                                              September 30,      December 31,
                                                 2009               2008
                                                                 As Restated
    CURRENT ASSETS
    Cash and cash equivalents                 $115,923,399       $70,636,510
    Accounts receivable, net of reserve
     of $512,013 and $226,330
     at September 30 , 2009 and December
     31, 2008, respectively                     37,961,967        36,982,167
    Inventories, net of provision for
     slow moving inventories                    15,291,710        13,042,123
    Advances to suppliers                        2,798,860         3,593,979
    Notes receivable                               122,300           708,076
    Refundable deposit                                  --         6,396,996
    Deferred tax assets                            398,563           347,216
    Other current assets                         1,154,315           744,903
            Total Current Assets               173,651,114       132,451,970

    LONG-TERM ASSETS
    Property, plant and equipment, net          96,085,233        98,154,443
    Land use rights, net                       154,233,322       148,988,870
    Deposit for long-term assets                        --         6,347,174
    Construction in progress                    26,645,307        25,385,835
    Deferred tax assets                            127,823         1,313,832
    Other intangible assets, net                19,911,767        23,690,440
    Goodwill                                    33,164,121        33,164,121
    Investments in and advances to equity
     investments                                54,995,237        54,963,064
    Unamortized financing costs                  3,519,766         4,215,983
           Total Long-Term Assets              388,682,576       396,223,762

                TOTAL ASSETS                  $562,333,690      $528,675,732

    LIABILITIES AND SHAREHOLDERS' EQUITY

                                              September 30,      December 31,
                                                  2009              2008
                                                                 As Restated

    CURRENT LIABILITIES
    Accounts payable                           $10,082,129       $12,287,887
    Notes payables                               4,084,893         3,262,877
    Other payables and accrued expenses         19,556,446        19,766,652
    Taxes payable                                1,108,783           420,671
    Short-term bank loans                        9,652,509         7,140,148
    Current portion of long-term bank
     loans                                          59,771            58,659
    Other liabilities                            2,334,788         2,253,440
    Deferred tax liability                         176,449           178,931
          Total Current Liabilities             47,055,768        45,369,265

    LONG-TERM LIABILITIES
    Long-term bank loans                           759,597           804,521
    Long-term notes payable                             --           269,908
    Deferred tax liabilities                    15,502,047        17,635,511
    Unrecognized tax benefits                    1,903,342
    Convertible Note                           115,000,000       115,000,000
         Total Long-Term Liabilities           133,164,986       133,709,940
              TOTAL LIABILITIES                180,220,754       179,079,205

    EQUITY
    SHAREHOLDERS' EQUITY
    Preferred stock, $0.001 par value;
     2,000,000 shares authorized;
     1,000,000 shares issued and
     outstanding at September 30 , 2009
     and December 31, 2008,
     respectively                                    1,000             1,000
    Common stock, $0.001 par value;
     150,000,000 shares authorized;
     78,321,439 and 78,249,264 shares
     issued and outstanding at
     September 30, 2009 and December
     31, 2008, respectively.                        78,321            78,249
    Common stock to be issued                      291,000           376,335
    Prepaid forward repurchase contract        (29,998,616)      (29,998,616)
    Additional paid-in capital                 199,363,784       197,046,688
    Retained earnings (the restricted
     portion of retained earnings is
     $19,924,918
     at September 30 , 2009 and December
     31, 2008, respectively)                   179,500,646       149,752,604
    Accumulated other comprehensive
     income                                     32,343,586        31,688,186
         Total Shareholders' Equity            381,579,721       348,944,446
    NONCONTROLLING INTEREST                        533,215           652,081
                TOTAL EQUITY                   382,112,936       349,596,527
     TOTAL LIABILITIES AND SHAREHOLDERS'
                   EQUITY                     $562,333,690      $528,675,732

The Company will hold a conference call at 8:00 am ET on Tuesday, November 17, 2009 to discuss third quarter 2009 results. Listeners may access the call by dialing 1-866-770-7051 or 1-617-213-8064 for international callers, access code: 89648638. A webcast will also be available through AOB's website at http://www.bioaobo.com .

A replay of the call will be available through November 24, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 58148119.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

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NEW YORK, Sept. 8 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), ("the Company" or "AOBO"), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products, today announced the Company's participation in the following conferences:

    -- Morgan Stanley Healthcare Corporate Day, to be held September 11, 2009
       in Boston, MA.  Management will meet with institutional investors
       throughout the day.

    -- Morgan Stanley Global Healthcare Unplugged Conference, to be held
       September 14-15, 2009 in New York City. Management will meet with
       institutional investors throughout both days.

    -- Merrill Lynch/Bank of America Global Drug, Biotech & Medical Devices
       Conference, to be held September 15-17, 2009 in London. Management will
       present at 1:45pm London Time on September 16, 2009 and meet with
       institutional investors throughout all three days. A live webcast of
       the presentation will be available via the Company's website at
       http://www.bioaobo.com/ .

    -- Susquehanna Financial Group Third Annual Beijing Management Summit, to
       be held September 16-17, 2009 in Beijing, China. Management will speak
       on a panel discussion entitled, "China Pharma/Biotech Panel
       Participants," scheduled from 1:05-2:10pm Beijing Time on September 16,
       2009. In addition, management will also present at 9:45am Beijing Time
       on September 16, 2009 and meet with institutional investors throughout
       both days.

For further details, please contact your respective institutional sales representative.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Prin

China's Ministry of Health ("MOH") released the EDL on August 18, 2009. After a rigorous selection process, an expert evaluation group selected three hundred and seven "essential medicines" from tens of thousands of products. Inclusion in the EDL ensures that products deemed to be essential medicines are available to the public at appropriate dosages and at affordable rates, at all times. Inclusion in the EDL also ensures inclusion in the National Medical Insurance Catalog, which reimburses manufacturers.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We believe we are well-positioned in the context of China's healthcare reform, and we are aligned with the PRC's overall efforts to enhance medical care and coverage nationally. We are honored to have sixty one products included in China's Essential Drug List, and today's announcement speaks to our commitment to efficacy and high quality. Our status as a designated branded supplier will boost distributor confidence and retail sales efforts. Going forward, AOBO will continue to be aligned with China's healthcare efforts as we maintain our vision and dedication to improving consumer health in China."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

    For more information, please contact:

    Integrated Corporate Relations, Inc.
     Ashley M. Ammon
     Tel: +1-203-682-8208

The selection process took one year to complete and, in total, 60 branded drugs manufactured by 52 Chinese and global pharmaceutical companies were included in the list. The assessment committee was composed of experts in the areas of clinical work, pharmaceuticals, marketing and branding, and the selection criteria included the drugs' quality, efficacy, health-economic indicators, market share and brand influence.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are very honored to receive this recognition from industry experts. This important distinction validates our branding strategy and adds credibility to these brands on a national basis. This award speaks to the strength of our brand value in the competitive Chinese market, and builds on our achievement of being named a Top 20 Most Competitive Public Pharmaceutical Company in China, which we received in July."

Jinji Capsule (Prescription and OTC Product)

The Jinji brand gynecological products are AOBO's flagship women's health products. Leading Jinji products include Jinji Capsule and Jinji Yi Mu Cau. Jinji Capsule treats various women's health issues such as gynecological inflammation, endometritis and annexitis and is complementary to AOBO's other product lines in the women's health marketplace. Based on government data, there are 147 million women in China that suffer from gynecological inflammation.

Boke Nasal Spray (OTC Product)

Boke nasal spray is an over-the-counter pharmaceutical product approved and marketed for the treatment of sinus congestion from common cold, stuffy nose, chronic rhinitis, allergic rhinitis and nasosinusitis. The spray is marketed under the product name of Ditong Biyanshui Penwuji ("Ditong"). Ditong is approved by the SFDA in China and marketed as a branded drug. This product consists of a combination of many parts of TCM plants, including roots, vines, flowers and stems. Treatment dosage is three to four times a day and two sprays into each nostril.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

    For more information, please contact:

     Integrated Corporate Relations, Inc.
     Ashley M. Ammon
     Tel:   +1-203-682-8208

During the years ended December 31, 2007 and 2008 and through August 10, 2009, there were no disagreements with the Company's prior independent auditor, Weinberg & Company, P.A., on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Weinberg, would have caused Weinberg to make reference to the subject matter of the disagreements in its reports on the consolidated financial statements for such years.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.

--2Q09 Revenue Increased 20.7% YoY to $71.2 Million--

--2Q09 Net Income Attributable to Controlling Interest was $13.2 million or

$0.17 per Diluted Share--

-- Company Generates Approximately $22.9 Million of Operating Cashflow--

American Oriental Bioengineering, Inc. (NYSE: AOB - News), ("the Company" or "AOBO"), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products in China, today announced financial results for the second quarter ended June 30, 2009.

Revenue in the second quarter of 2009 increased 20.7% to $71.2 million from $59.0 million in the second quarter of 2008, reflecting continued demand for the Company's core pharmaceutical and nutraceutical products. Revenue from pharmaceutical products increased 17.4% to $58.4 million from $49.8 million in the prior year's second quarter. Revenue from prescription pharmaceutical products increased 23.2% to $25.2 million during the second quarter of 2009, reflecting an increase in sales from prescription formulation Jinji and CCXA products, which offset declines in sales of Shuanghuanglian Injection Powder ("SHL"). OTC pharmaceutical products generated $33.3 million in revenue during the second quarter of 2009, up from $29.4 million in the prior year's period, reflecting continued demand for Boke and GLP products, as a result of marketing efforts and improved recognition of the products. Nutraceutical products generated revenue of approximately $9.5 million in the second quarter of 2009, up 3.3% from $9.2 million in the prior year's period, reflecting increased sales of new beverage products launched in the beginning of 2009. The Company generated $3.3 million from its distribution business.

Gross profit in the second quarter of 2009 increased 3.9% to $41.6 million from $40.1 million in the second quarter of 2008. Gross margin was 58.4%, compared to 67.9% in the prior year's period, reflecting continued revenue mix shift to CCXA's generic product sales, increasing raw material prices and low margin distribution business.

Operating income in the second quarter of 2009 was $18.3 million compared to $18.7 million in the second quarter of 2008. Selling and marketing expenses increased 22.2% to $9.4 million from $7.7 million in the prior year period. The increase primarily reflects marketing and promotional initiatives to support the continuous growth of revenues. Advertising expense was $7.8 million in the second quarter of 2009, compared to $7.5 million in the prior year's period.

Net income attributable to controlling interest for the second quarter of 2009 was $13.2 million, compared to $13.9 million in the prior year's period. Excluding $1.4 million of interest expense and $0.2 million of amortized financing costs related to the Company's outstanding convertible notes, the Company's net income attributable to controlling interest increased 6.5% to $14.8 million, or $0.17 per diluted share. In the prior year's second quarter, net income per diluted share was approximately $0.18.

As of June 30, 2009, the Company had $100.7 million in cash and generated approximately $22.9 million of operating cashflow during the second quarter of 2009.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are pleased with our second quarter performance as we continued to enhance our diversified product portfolio and pursue further vertical integration. Our marketing capabilities, extensive distribution platform, diversified product offering and ongoing rural expansion offset anticipated challenges in SHL sales during the second quarter of 2009. We also made significant progress this quarter optimizing our distribution business, so that we solidify our presence in Tier I and II hospital channels and remain on-track for net income contributions for the full year. We continue to drive revenue growth and consistently generate cash despite the uncertain regulatory environment in China's healthcare sector, and we are confident in our ability to be a top-five pharmaceutical company in China."

Conference Call

The Company will hold a conference call at 8:00 am ET on August 7, 2009 to discuss second quarter 2009 results. Listeners may access the call by dialing 1-866-761-0749 or 1-617-614-2707 for international callers, access code: 54060064. A webcast will also be available through AOB's website at http://www.bioaobo.com . A replay of the call will be available through August 14, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 18519426.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

JUNE 30, DECEMBER 31,
2009 2008
(UNAUDITED)
CURRENT ASSETS
Cash and cash equivalents $100,730,402 $70,636,510
Accounts receivable, net of reserve of
$505,433 and $226,330 at June 30, 2009
and December 31, 2008, respectively 31,396,881 36,982,167
Inventories, net 16,829,834 13,042,123
Advances to suppliers 3,135,694 3,593,979
Notes receivable 81,075 708,076
Refundable deposit -- 6,396,996
Deferred tax assets 421,660 347,216
Other current assets 937,087 744,903
Total Current Assets 153,532,633 132,451,970

LONG-TERM ASSETS
Property, plant and equipment, net 96,151,689 98,154,443
Land use rights, net 148,301,203 148,988,870
Deposit for long-term assets 6,717,514 6,347,174
Construction in progress 25,871,656 25,385,835
Deferred tax assets 1,327,627 1,313,832
Other intangible assets, net 21,146,928 23,690,440
Goodwill 28,543,226 28,543,226
Long-term investment and advance 55,452,267 54,963,064
Unamortized financing cost 3,751,838 4,215,983
Total Long-Term Assets 387,263,948 391,602,867

TOTAL ASSETS $540,796,581 $524,054,837

LIABILITIES AND EQUITY

JUNE 30, DECEMBER 31,
2009 2008
(UNAUDITED)
CURRENT LIABILITIES
Accounts payable $12,548,451 $12,287,887
Notes payables 3,011,486 3,262,877
Other payables and accrued expenses 14,251,673 19,766,652
Taxes payable 625,261 420,671
Short-term bank loans 6,720,430 7,140,148
Current portion of long-term bank loans 59,396 58,659
Other liabilities 2,511,295 2,253,440
Deferred tax liability 1,121,738 846,026
Total Current Liabilities 40,849,730 46,036,360

LONG-TERM LIABILITIES
Long-term bank loans, net of current
portion 774,641 804,521
Long-term notes payable -- 269,908
Deferred tax liabilities 15,963,766 16,083,768
Convertible notes 115,000,000 115,000,000
Total Long-Term Liabilities 131,738,407 132,158,197
TOTAL LIABILITIES 172,588,137 178,194,557

COMMITMENTS

EQUITY
SHAREHOLDERS' EQUITY
Preferred stock, $0.001 par value;
2,000,000 shares authorized;
1,000,000 shares issued and
outstanding at June 30, 2009 and
December 31, 2008, respectively 1,000 1,000
Common stock, $0.001 par value;
150,000,000 shares authorized;
78,301,439 and 78,249,264 shares
issued and outstanding at June 30,
2009 and December 31, 2008, respectively 78,301 78,249
Common stock to be issued 311,999 376,335
Prepaid forward repurchase contract (29,998,616) (29,998,616)
Additional paid-in capital 196,752,860 195,741,544
Retained earnings (the restricted
portion of retained earnings is
$29,532,699 at June 30, 2009 and
December 31, 2008, respectively) 171,019,548 149,923,681
Accumulated other comprehensive income 29,510,788 29,086,006
Total Shareholders' Equity 367,675,880 345,208,199
NON-CONTROLLING INTEREST 532,564 652,081
TOTAL EQUITY 368,208,444 345,860,280
TOTAL LIABILITIES AND EQUITY $540,796,581 $524,054,837

AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(UNAUDITED)

THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2009 2008 2009 2008

REVENUES $71,222,037 $59,010,005 $117,299,227 $97,778,603
COST OF GOODS SOLD 29,594,923 18,928,447 47,255,261 31,406,083
GROSS PROFIT 41,627,114 40,081,558 70,043,966 66,372,520

Selling and
marketing 9,396,129 7,687,892 14,607,631 12,717,600
Advertising 7,779,936 7,452,231 13,347,293 11,846,572
General and
administrative 4,315,714 5,253,274 8,881,357 9,165,957
Depreciation and
amortization 1,850,274 1,010,461 3,709,189 1,987,671
Total operating
expenses 23,342,053 21,403,858 40,545,470 35,717,800

INCOME FROM
OPERATIONS 18,285,061 18,677,700 29,498,496 30,654,720

EQUITY IN EARNINGS
(LOSS) FROM
UNCONSOLIDATED
ENTITIES (173,258) (640,008) 264,536 (641,067)
INTEREST INCOME
(EXPENSE), NET (1,620,069) (30,616) (3,199,338) (13,769)
OTHER INCOME
(EXPENSE), NET (16,329) (255,770) (114,938) (356,502)
INCOME BEFORE INCOME
TAXES 16,475,405 17,751,306 26,448,756 29,643,382

INCOME TAXES 3,369,107 3,891,614 5,472,406 6,361,562

NET INCOME 13,106,298 13,859,692 20,976,350 23,281,820
NET INCOME
ATTRIBUTABLE TO NON-
CONTROLLING INTEREST 123,068 -- 119,517 --
NET INCOME
ATTRIBUTABLE TO
CONTROLLING INTEREST 13,229,366 13,859,692 21,095,867 23,281,820

OTHER COMPREHENSIVE
INCOME
Foreign currency
translation gain,
net of tax 46,316 5,154,761 424,782 12,089,196
TOTAL OTHER
COMPREHENSIVE
INCOME, NET OF TAX 46,316 5,154,761 424,782 12,089,196

COMPREHENSIVE INCOME $13,275,682 $19,014,453 $21,520,649 $35,371,016

NET INCOME PER SHARE
BASIC $0.18 $0.18 $0.28 $0.30
DILUTED $0.17 $0.18 $0.28 $0.30

WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING
BASIC 74,582,920 78,223,659 74,560,809 78,207,405
DILUTED 88,815,593 78,223,659 86,939,711 78,208,181

- Jingwei Capsules Treat Allergy Symptoms -

- Complements Established Boke Nasal Spray Brand -

- Diversifies Product Offering with Capsule Formulation -

American Oriental Bioengineering, Inc. (NYSE: AOB - News), ("the Company" or "AOBO"), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products in China, today announced that the Company has launched a new product for the rhinitis and allergy market, called Jingwei Capsules ("Jingwei"). Jingwei will be manufactured by the Company's Boke subsidiary, and will be marketed throughout China utilizing AOBO's distribution network, including the Company's national hospital and pharmacy distribution network.

Jingwei is an effective, long-lasting, tricyclic antihistamine that selectively antagonizes peripheral H1-receptors. This unique mechanism enables Jingwei to quickly alleviate the symptoms associated with rhinitis, chronic urticaria, itching skin and other allergic skin reactions, but without the common antihistamine side-effects. A branded version of Loratadine, Jingwei is currently reimbursable under China's national insurance program.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are very pleased to be launching the Jingwei Capsule, which is complementary to our market-leading Boke nasal spray. Its major competitor is Schering-Plough's Claritine, whose revenue is estimated to be RMB 1.0 billion at present. Jingwei is an excellent product that is both effective and safe. With AOBO's well-established distribution network, and the strength of the Boke brand, we believe that the Jingwei capsule could become one of AOBO's leading products over time. We are confident in our future growth prospects as we continue to expand our product lines and launch innovative new products."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

The Company will hold a conference call at 8:00 am ET on August 7, 2009 to discuss second quarter 2009 results. Listeners may access the call by dialing 1-866-761-0749 or 1-617-614-2707 for international callers, access code: 54060064. A webcast will also be available through AOB's website at http://www.bioaobo.com . A replay of the call will be available through August 14, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 18519426.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.

The 20 listed companies were selected from 132 Chinese pharmaceutical companies listed in Shanghai, Shenzhen, Hong Kong, Singapore, New York or on NASDAQ, as of February of this year. The selection criteria were based on the companies' management capabilities, brand recognition, financial strength, resource accessibility and quality of key team members.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are very honored to receive this recognition by the industry. This award speaks to the strength of our brand value and competitiveness in the changing environment. We will continue to focus on creating greater value for investors."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a China-based pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

American Oriental Bioengineering Reports First Quarter 2009 Financial Results

NEW YORK, May 11 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ('OTC') products in China, today announced financial results for the first quarter ended March 31, 2009.

Financial Results

Revenue in the first quarter of 2009 increased 18.9% year over year to $46.1 million from $38.8 million, reflecting continued demand for the Company's core pharmaceutical and nutraceutical products. Revenue from pharmaceutical products increased 8.9% to $34.7 million from $31.9 million in the prior year's first quarter. Prescription pharmaceutical products revenue increased 14.5% to $16.2 million during the first quarter of 2009, reflecting prescription formulation Jinji and CCXA products, which offset declines in Shuanghuanglian Injection Powder ('SHL'). OTC pharmaceutical products generated $18.5 million in revenue during the first quarter of 2009, roughly flat to the prior year period, reflecting continued demand for Boke nasal spray and Jinji Yimucao products and a shift of Jinji Capsule products from OTC to prescription sales. Nutraceutical products generated revenue of approximately $8.9 million in the first quarter of 2009, up 29.0% from the prior year period, reflecting continued demand for peptide products and an expanded distribution network versus the prior year's first quarter. The Company generated $2.5 million in distribution revenue in the first quarter of 2009 from Nuo Hua's majority owned subsidiary.

Gross profit in the first quarter of 2009 increased 8.1% to $28.4 million from $26.3 million in the first quarter of 2008. Gross margin was 61.7%, compared with 67.8% in the prior year period, reflecting lower margin distribution revenue and CCXA's generic product sales.

Operating income in the first quarter was $11.2 million compared with $12.0 million in the prior year period, reflecting a 20.2% increase in operating expenses to $17.2 million in the first quarter of 2009 from $14.3 million in the prior year period. General and administration expenses as well as selling and marketing expenses increased 9.3% to $9.8 million from $8.9 million in the prior year period. The increase primarily reflects marketing and promotional initiatives related to Jinji and Boke products. Advertising expense increased 26.7% to $5.6 million in the first quarter of 2009, compared to $4.4 million in the prior year period.

Net income for the first quarter of 2009 was $7.9 million, compared to $9.4 million in the prior year period. Excluding the $1.7 million of interest expense related to the Company's outstanding convertible notes in the first quarter of 2009, which did not occur in the first quarter of 2008, net income performance was roughly flat on a year over year basis. Net income per diluted share was $0.11 in the first quarter of 2009 compared to $0.12 per diluted share in the first quarter of 2008.

As of March 31, 2009, the Company had $73.9 million in cash and generated approximately $3.6 million of operating cashflow during the quarter.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, 'We are pleased with our first quarter performance and have met our key near-term objective to foster a dynamic business model that is diversified across prescription, OTC and nutraceutical products. Notably, our distribution business began to strengthen overall performance this quarter, contributing to net income as anticipated, and enlarging our distribution reach, particularly for our prescription pharmaceutical products. We are more flexible today than we were one year ago and, because of this, we can quickly adapt to change and capitalize on new opportunities despite the uncertain regulatory environment. Our marketing capabilities, extensive distribution platform, compelling product portfolio and ongoing rural expansion offset anticipated challenges in SHL sales during the first quarter of 2009 and we remain focused on becoming a top five pharmaceutical company in China.'

Conference Call

The Company will hold a conference call at 8:00 am ET on May 11, 2009 to discuss first quarter 2009 results. Listeners may access the call by dialing 1-866-798-2884 or 1-617-614-6207 for international callers, access code: 34266051. A webcast will also be available through AOBO's website at http://www.bioaobo.com . A replay of the call will be available through May 18, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617- 801-6888 for international callers, access code: 57318398.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a China-based pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

           AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                 (UNAUDITED)

                                                    THREE MONTHS ENDED
                                                         March 31
                                                   2009              2008
    REVENUES                                   $46,077,190       $38,768,598
    COST OF GOODS SOLD                          17,660,338        12,477,636

    GROSS PROFIT                                28,416,852        26,290,962

    Selling and marketing                        5,211,502         5,029,708
    Advertising                                  5,567,357         4,394,341
    General and administrative                   4,565,643         3,912,683
    Depreciation and amortization                1,858,915           977,210

    Total operating expenses                    17,203,417        14,313,942

    INCOME FROM OPERATIONS                      11,213,435        11,977,020

    EQUITY IN EARNINGS (LOSS) FROM
     UNCONSOLIDATED ENTITIES                       437,794                --
    INTEREST INCOME (EXPENSE), NET              (1,579,269)           16,847
    OTHER (EXPENSE), NET                           (98,609)         (101,790)

    INCOME BEFORE INCOME TAXES                   9,973,351        11,892,077
    INCOME TAXES                                 2,103,299         2,469,948

    NET INCOME                                   7,870,052         9,422,129
    NET INCOME ATTRIBUTABLE TO NON-
     CONTROLLING INTEREST                           (3,551)               --
    NET INCOME ATTRIBUTABLE TO
     CONTROLLING INTEREST                        7,866,501         9,422,129

    OTHER COMPREHENSIVE INCOME
    Foreign currency translation gain,
     net of tax                                    378,466         6,934,434
    OTHER COMPREHENSIVE INCOME, NET OF
     TAX                                           378,466         6,934,434

    COMPREHENSIVE INCOME                        $8,244,967       $16,356,563

    NET INCOME PER COMMON SHARE
      BASIC                                          $0.11             $0.12
      DILUTED                                        $0.11             $0.12
    WEIGHTED AVERAGE NUMBER OF COMMON
     SHARES OUTSTANDING
      BASIC                                     74,538,593     78,191,242.00
      DILUTED                                   86,917,603     78,192,795.00





             AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                               March 31,       DECEMBER 31,
                                                  2009             2008
                                               UNAUDITED
    CURRENT ASSETS
    Cash and cash equivalents                 $73,899,602      $70,636,510
    Accounts receivable, net of reserve
     of $130,631 and $226,330 at March 31,
     2009 and December 31, 2008,
     respectively                              31,812,778       36,982,167
    Inventories, net of provision for
     slow moving inventories                   17,954,075       13,042,123
    Advances to suppliers                       2,241,176        3,593,979
    Notes receivable                            1,039,914          708,076
    Refundable deposit                          6,397,106        6,396,996

    Tax refund claims                             823,737               --
    Deferred tax assets                           456,444          347,216
    Other current assets                          863,554          744,903
            Total Current Assets              135,488,386      132,451,970

    LONG-TERM ASSETS
    Plant and equipment, net                   97,192,300       98,154,443
    Land use rights, net                      148,319,092      148,988,870
    Deposit for long-term assets                6,355,148        6,347,174
    Construction in progress                   25,675,899       25,385,835
    Deferred tax assets                         1,322,194        1,313,832
    Other intangible assets, net               22,426,393       23,690,440
    Goodwill                                   28,543,226       28,543,226
    Investments in and advances to
     equity investments                        55,554,438       54,963,064
    Unamortized financing costs                 3,983,911        4,215,983
           Total Long-Term Assets             389,372,601      391,602,867

                TOTAL ASSETS                 $524,860,987     $524,054,837

                      LIABILITIES AND SHAREHOLDERS' EQUITY

                                               March 31,     December 31,
                                                 2009           2008
                                               UNAUDITED
    CURRENT LIABILITIES
    Accounts payable                          $10,355,431      $12,287,887
    Notes payables                              3,277,285        3,262,877
    Other payables and accrued expenses        13,578,351       19,766,652
    Taxes payable                                      --          420,671
    Short-term bank loans                       7,441,276        7,140,148
    Current portion of long-term bank
     loans                                         59,022           58,659
    Other liabilities                           2,738,113        2,253,440
    Deferred tax liability                        999,454          846,026
         Total Current Liabilities             38,448,932       46,036,360

    LONG-TERM LIABILITIES
    Long-term bank loans                          789,579          804,521
    Long-term notes payable                            --          269,908
    Deferred tax liabilities                   16,102,048       16,083,768
    Convertible Note                          115,000,000      115,000,000
        Total Long-Term Liabilities           131,891,627      132,158,197
             TOTAL LIABILITIES                170,340,559      178,194,557

    EQUITY
    SHAREHOLDERS' EQUITY
    Preferred stock, $0.001 par value;
     2,000,000 shares authorized;
     1,000,000 shares issued and
     outstanding at March 31, 2009 and
     December 31, 2008, respectively                1,000            1,000
    Common stock, $0.001 par value;
     150,000,000 shares authorized;
     78,291,735 and 78,249,264 shares
     issued and outstanding at March
     31, 2009 and December 31, 2008,
     respectively                                  78,292           78,249
    Common stock to be issued                     177,000          376,335
    Prepaid forward repurchase contract       (29,998,616)     (29,998,616)
    Additional paid-in capital                196,352,466      195,741,544
    Retained earnings (the restricted
     portion of retained earnings is
     $29,532,699 at March 31, 2009 and
     December 31, 2008)                       157,790,182      149,923,681
    Accumulated other comprehensive
     income                                    29,464,472       29,086,006
         Total Shareholders' Equity           353,864,796      345,208,199
    NONCONTROLLING INTEREST                       655,632          652,081
                TOTAL EQUITY                  354,520,428      345,860,280
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                  $524,860,987     $524,054,837

------

American Oriental Bioengineering Reports First Quarter 2009 Financial Results

NEW YORK, May 11 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ('OTC') products in China, today announced financial results for the first quarter ended March 31, 2009.

Financial Results

Revenue in the first quarter of 2009 increased 18.9% year over year to $46.1 million from $38.8 million, reflecting continued demand for the Company's core pharmaceutical and nutraceutical products. Revenue from pharmaceutical products increased 8.9% to $34.7 million from $31.9 million in the prior year's first quarter. Prescription pharmaceutical products revenue increased 14.5% to $16.2 million during the first quarter of 2009, reflecting prescription formulation Jinji and CCXA products, which offset declines in Shuanghuanglian Injection Powder ('SHL'). OTC pharmaceutical products generated $18.5 million in revenue during the first quarter of 2009, roughly flat to the prior year period, reflecting continued demand for Boke nasal spray and Jinji Yimucao products and a shift of Jinji Capsule products from OTC to prescription sales. Nutraceutical products generated revenue of approximately $8.9 million in the first quarter of 2009, up 29.0% from the prior year period, reflecting continued demand for peptide products and an expanded distribution network versus the prior year's first quarter. The Company generated $2.5 million in distribution revenue in the first quarter of 2009 from Nuo Hua's majority owned subsidiary.

Gross profit in the first quarter of 2009 increased 8.1% to $28.4 million from $26.3 million in the first quarter of 2008. Gross margin was 61.7%, compared with 67.8% in the prior year period, reflecting lower margin distribution revenue and CCXA's generic product sales.

Operating income in the first quarter was $11.2 million compared with $12.0 million in the prior year period, reflecting a 20.2% increase in operating expenses to $17.2 million in the first quarter of 2009 from $14.3 million in the prior year period. General and administration expenses as well as selling and marketing expenses increased 9.3% to $9.8 million from $8.9 million in the prior year period. The increase primarily reflects marketing and promotional initiatives related to Jinji and Boke products. Advertising expense increased 26.7% to $5.6 million in the first quarter of 2009, compared to $4.4 million in the prior year period.

Net income for the first quarter of 2009 was $7.9 million, compared to $9.4 million in the prior year period. Excluding the $1.7 million of interest expense related to the Company's outstanding convertible notes in the first quarter of 2009, which did not occur in the first quarter of 2008, net income performance was roughly flat on a year over year basis. Net income per diluted share was $0.11 in the first quarter of 2009 compared to $0.12 per diluted share in the first quarter of 2008.

As of March 31, 2009, the Company had $73.9 million in cash and generated approximately $3.6 million of operating cashflow during the quarter.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, 'We are pleased with our first quarter performance and have met our key near-term objective to foster a dynamic business model that is diversified across prescription, OTC and nutraceutical products. Notably, our distribution business began to strengthen overall performance this quarter, contributing to net income as anticipated, and enlarging our distribution reach, particularly for our prescription pharmaceutical products. We are more flexible today than we were one year ago and, because of this, we can quickly adapt to change and capitalize on new opportunities despite the uncertain regulatory environment. Our marketing capabilities, extensive distribution platform, compelling product portfolio and ongoing rural expansion offset anticipated challenges in SHL sales during the first quarter of 2009 and we remain focused on becoming a top five pharmaceutical company in China.'

Conference Call

The Company will hold a conference call at 8:00 am ET on May 11, 2009 to discuss first quarter 2009 results. Listeners may access the call by dialing 1-866-798-2884 or 1-617-614-6207 for international callers, access code: 34266051. A webcast will also be available through AOBO's website at http://www.bioaobo.com . A replay of the call will be available through May 18, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 57318398.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a China-based pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

           AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                 (UNAUDITED)

                                                    THREE MONTHS ENDED
                                                         March 31
                                                   2009              2008
    REVENUES                                   $46,077,190       $38,768,598
    COST OF GOODS SOLD                          17,660,338        12,477,636

    GROSS PROFIT                                28,416,852        26,290,962

    Selling and marketing                        5,211,502         5,029,708
    Advertising                                  5,567,357         4,394,341
    General and administrative                   4,565,643         3,912,683
    Depreciation and amortization                1,858,915           977,210

    Total operating expenses                    17,203,417        14,313,942

    INCOME FROM OPERATIONS                      11,213,435        11,977,020

    EQUITY IN EARNINGS (LOSS) FROM
     UNCONSOLIDATED ENTITIES                       437,794                --
    INTEREST INCOME (EXPENSE), NET              (1,579,269)           16,847
    OTHER (EXPENSE), NET                           (98,609)         (101,790)

    INCOME BEFORE INCOME TAXES                   9,973,351        11,892,077
    INCOME TAXES                                 2,103,299         2,469,948

    NET INCOME                                   7,870,052         9,422,129
    NET INCOME ATTRIBUTABLE TO NON-
     CONTROLLING INTEREST                           (3,551)               --
    NET INCOME ATTRIBUTABLE TO
     CONTROLLING INTEREST                        7,866,501         9,422,129

    OTHER COMPREHENSIVE INCOME
    Foreign currency translation gain,
     net of tax                                    378,466         6,934,434
    OTHER COMPREHENSIVE INCOME, NET OF
     TAX                                           378,466         6,934,434

    COMPREHENSIVE INCOME                        $8,244,967       $16,356,563

    NET INCOME PER COMMON SHARE
      BASIC                                          $0.11             $0.12
      DILUTED                                        $0.11             $0.12
    WEIGHTED AVERAGE NUMBER OF COMMON
     SHARES OUTSTANDING
      BASIC                                     74,538,593     78,191,242.00
      DILUTED                                   86,917,603     78,192,795.00





             AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                               March 31,       DECEMBER 31,
                                                  2009             2008
                                               UNAUDITED
    CURRENT ASSETS
    Cash and cash equivalents                 $73,899,602      $70,636,510
    Accounts receivable, net of reserve
     of $130,631 and $226,330 at March 31,
     2009 and December 31, 2008,
     respectively                              31,812,778       36,982,167
    Inventories, net of provision for
     slow moving inventories                   17,954,075       13,042,123
    Advances to suppliers                       2,241,176        3,593,979
    Notes receivable                            1,039,914          708,076
    Refundable deposit                          6,397,106        6,396,996

    Tax refund claims                             823,737               --
    Deferred tax assets                           456,444          347,216
    Other current assets                          863,554          744,903
            Total Current Assets              135,488,386      132,451,970

    LONG-TERM ASSETS
    Plant and equipment, net                   97,192,300       98,154,443
    Land use rights, net                      148,319,092      148,988,870
    Deposit for long-term assets                6,355,148        6,347,174
    Construction in progress                   25,675,899       25,385,835
    Deferred tax assets                         1,322,194        1,313,832
    Other intangible assets, net               22,426,393       23,690,440
    Goodwill                                   28,543,226       28,543,226
    Investments in and advances to
     equity investments                        55,554,438       54,963,064
    Unamortized financing costs                 3,983,911        4,215,983
           Total Long-Term Assets             389,372,601      391,602,867

                TOTAL ASSETS                 $524,860,987     $524,054,837

                      LIABILITIES AND SHAREHOLDERS' EQUITY

                                              DECEMBER 31,     DECEMBER 31,
                                                  2008             2007
                                               UNAUDITED
    CURRENT LIABILITIES
    Accounts payable                          $10,355,431      $12,287,887
    Notes payables                              3,277,285        3,262,877
    Other payables and accrued expenses        13,578,351       19,766,652
    Taxes payable                                      --          420,671
    Short-term bank loans                       7,441,276        7,140,148
    Current portion of long-term bank
     loans                                         59,022           58,659
    Other liabilities                           2,738,113        2,253,440
    Deferred tax liability                        999,454          846,026
         Total Current Liabilities             38,448,932       46,036,360

    LONG-TERM LIABILITIES
    Long-term bank loans                          789,579          804,521
    Long-term notes payable                            --          269,908
    Deferred tax liabilities                   16,102,048       16,083,768
    Convertible Note                          115,000,000      115,000,000
        Total Long-Term Liabilities           131,891,627      132,158,197
             TOTAL LIABILITIES                170,340,559      178,194,557

    EQUITY
    SHAREHOLDERS' EQUITY
    Preferred stock, $0.001 par value;
     2,000,000 shares authorized;
     1,000,000 shares issued and
     outstanding at March 31, 2009 and
     December 31, 2008, respectively                1,000            1,000
    Common stock, $0.001 par value;
     150,000,000 shares authorized;
     78,291,735 and 78,249,264 shares
     issued and outstanding at March
     31, 2009 and December 31, 2008,
     respectively                                  78,292           78,249
    Common stock to be issued                     177,000          376,335
    Prepaid forward repurchase contract       (29,998,616)     (29,998,616)
    Additional paid-in capital                196,352,466      195,741,544
    Retained earnings (the restricted
     portion of retained earnings is
     $29,532,699 at March 31, 2009 and
     December 31, 2008)                       157,790,182      149,923,681
    Accumulated other comprehensive
     income                                    29,464,472       29,086,006
         Total Shareholders' Equity           353,864,796      345,208,199
    NONCONTROLLING INTEREST                       655,632          652,081
                TOTAL EQUITY                  354,520,428      345,860,280
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                  $524,860,987     $524,054,837

SOURCE American Oriental Bioengineering, Inc.

Source: PR Newswire (May 11, 2009 - 9:22 AM EDT)

Financial Results

Revenue in the first quarter of 2009 increased 18.9% year over year to $46.1 million from $38.8 million, reflecting continued demand for the Company's core pharmaceutical and nutraceutical products. Revenue from pharmaceutical products increased 8.9% to $34.7 million from $31.9 million in the prior year's first quarter. Prescription pharmaceutical products revenue increased 14.5% to $16.2 million during the first quarter of 2009, reflecting prescription formulation Jinji and CCXA products, which offset declines in Shuanghuanglian Injection Powder ('SHL'). OTC pharmaceutical products generated $18.5 million in revenue during the first quarter of 2009, roughly flat to the prior year period, reflecting continued demand for Boke nasal spray and Jinji Yimucao products and a shift of Jinji Capsule products from OTC to prescription sales. Nutraceutical products generated revenue of approximately $8.9 million in the first quarter of 2009, up 29.0% from the prior year period, reflecting continued demand for peptide products and an expanded distribution network versus the prior year's first quarter. The Company generated $2.5 million in distribution revenue in the first quarter of 2009 from Nuo Hua's majority owned subsidiary.

Gross profit in the first quarter of 2009 increased 8.1% to $28.4 million from $26.3 million in the first quarter of 2008. Gross margin was 61.7%, compared with 67.8% in the prior year period, reflecting lower margin distribution revenue and CCXA's generic product sales.

Operating income in the first quarter was $11.2 million compared with $12.0 million in the prior year period, reflecting a 20.2% increase in operating expenses to $17.2 million in the first quarter of 2009 from $14.3 million in the prior year period. General and administration expenses as well as selling and marketing expenses increased 9.3% to $9.8 million from $8.9 million in the prior year period. The increase primarily reflects marketing and promotional initiatives related to Jinji and Boke products. Advertising expense increased 26.7% to $5.6 million in the first quarter of 2009, compared to $4.4 million in the prior year period.

Net income for the first quarter of 2009 was $7.9 million, compared to $9.4 million in the prior year period. Excluding the $1.7 million of interest expense related to the Company's outstanding convertible notes in the first quarter of 2009, which did not occur in the first quarter of 2008, net income performance was roughly flat on a year over year basis. Net income per diluted share was $0.11 in the first quarter of 2009 compared to $0.12 per diluted share in the first quarter of 2008.

As of March 31, 2009, the Company had $73.9 million in cash and generated approximately $3.6 million of operating cashflow during the quarter.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, 'We are pleased with our first quarter performance and have met our key near-term objective to foster a dynamic business model that is diversified across prescription, OTC and nutraceutical products. Notably, our distribution business began to strengthen overall performance this quarter, contributing to net income as anticipated, and enlarging our distribution reach, particularly for our prescription pharmaceutical products. We are more flexible today than we were one year ago and, because of this, we can quickly adapt to change and capitalize on new opportunities despite the uncertain regulatory environment. Our marketing capabilities, extensive distribution platform, compelling product portfolio and ongoing rural expansion offset anticipated challenges in SHL sales during the first quarter of 2009 and we remain focused on becoming a top five pharmaceutical company in China.'

Conference Call

The Company will hold a conference call at 8:00 am ET on May 11, 2009 to discuss first quarter 2009 results. Listeners may access the call by dialing 1-866-798-2884 or 1-617-614-6207 for international callers, access code: 34266051. A webcast will also be available through AOBO's website at http://www.bioaobo.com . A replay of the call will be available through May 18, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 57318398.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a China-based pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

           AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                 (UNAUDITED)

                                                    THREE MONTHS ENDED
                                                         March 31
                                                   2009              2008
    REVENUES                                   $46,077,190       $38,768,598
    COST OF GOODS SOLD                          17,660,338        12,477,636

    GROSS PROFIT                                28,416,852        26,290,962

    Selling and marketing                        5,211,502         5,029,708
    Advertising                                  5,567,357         4,394,341
    General and administrative                   4,565,643         3,912,683
    Depreciation and amortization                1,858,915           977,210

    Total operating expenses                    17,203,417        14,313,942

    INCOME FROM OPERATIONS                      11,213,435        11,977,020

    EQUITY IN EARNINGS (LOSS) FROM
     UNCONSOLIDATED ENTITIES                       437,794                --
    INTEREST INCOME (EXPENSE), NET              (1,579,269)           16,847
    OTHER (EXPENSE), NET                           (98,609)         (101,790)

    INCOME BEFORE INCOME TAXES                   9,973,351        11,892,077
    INCOME TAXES                                 2,103,299         2,469,948

    NET INCOME                                   7,870,052         9,422,129
    NET INCOME ATTRIBUTABLE TO NON-
     CONTROLLING INTEREST                           (3,551)               --
    NET INCOME ATTRIBUTABLE TO
     CONTROLLING INTEREST                        7,866,501         9,422,129

    OTHER COMPREHENSIVE INCOME
    Foreign currency translation gain,
     net of tax                                    378,466         6,934,434
    OTHER COMPREHENSIVE INCOME, NET OF
     TAX                                           378,466         6,934,434

    COMPREHENSIVE INCOME                        $8,244,967       $16,356,563

    NET INCOME PER COMMON SHARE
      BASIC                                          $0.11             $0.12
      DILUTED                                        $0.11             $0.12
    WEIGHTED AVERAGE NUMBER OF COMMON
     SHARES OUTSTANDING
      BASIC                                     74,538,593     78,191,242.00
      DILUTED                                   86,917,603     78,192,795.00





             AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                               March 31,       DECEMBER 31,
                                                  2009             2008
                                               UNAUDITED
    CURRENT ASSETS
    Cash and cash equivalents                 $73,899,602      $70,636,510
    Accounts receivable, net of reserve
     of $130,631 and $226,330 at March 31,
     2009 and December 31, 2008,
     respectively                              31,812,778       36,982,167
    Inventories, net of provision for
     slow moving inventories                   17,954,075       13,042,123
    Advances to suppliers                       2,241,176        3,593,979
    Notes receivable                            1,039,914          708,076
    Refundable deposit                          6,397,106        6,396,996

    Tax refund claims                             823,737               --
    Deferred tax assets                           456,444          347,216
    Other current assets                          863,554          744,903
            Total Current Assets              135,488,386      132,451,970

    LONG-TERM ASSETS
    Plant and equipment, net                   97,192,300       98,154,443
    Land use rights, net                      148,319,092      148,988,870
    Deposit for long-term assets                6,355,148        6,347,174
    Construction in progress                   25,675,899       25,385,835
    Deferred tax assets                         1,322,194        1,313,832
    Other intangible assets, net               22,426,393       23,690,440
    Goodwill                                   28,543,226       28,543,226
    Investments in and advances to
     equity investments                        55,554,438       54,963,064
    Unamortized financing costs                 3,983,911        4,215,983
           Total Long-Term Assets             389,372,601      391,602,867

                TOTAL ASSETS                 $524,860,987     $524,054,837

                      LIABILITIES AND SHAREHOLDERS' EQUITY

                                              DECEMBER 31,     DECEMBER 31,
                                                  2008             2007
                                               UNAUDITED
    CURRENT LIABILITIES
    Accounts payable                          $10,355,431      $12,287,887
    Notes payables                              3,277,285        3,262,877
    Other payables and accrued expenses        13,578,351       19,766,652
    Taxes payable                                      --          420,671
    Short-term bank loans                       7,441,276        7,140,148
    Current portion of long-term bank
     loans                                         59,022           58,659
    Other liabilities                           2,738,113        2,253,440
    Deferred tax liability                        999,454          846,026
         Total Current Liabilities             38,448,932       46,036,360

    LONG-TERM LIABILITIES
    Long-term bank loans                          789,579          804,521
    Long-term notes payable                            --          269,908
    Deferred tax liabilities                   16,102,048       16,083,768
    Convertible Note                          115,000,000      115,000,000
        Total Long-Term Liabilities           131,891,627      132,158,197
             TOTAL LIABILITIES                170,340,559      178,194,557

    EQUITY
    SHAREHOLDERS' EQUITY
    Preferred stock, $0.001 par value;
     2,000,000 shares authorized;
     1,000,000 shares issued and
     outstanding at March 31, 2009 and
     December 31, 2008, respectively                1,000            1,000
    Common stock, $0.001 par value;
     150,000,000 shares authorized;
     78,291,735 and 78,249,264 shares
     issued and outstanding at March
     31, 2009 and December 31, 2008,
     respectively                                  78,292           78,249
    Common stock to be issued                     177,000          376,335
    Prepaid forward repurchase contract       (29,998,616)     (29,998,616)
    Additional paid-in capital                196,352,466      195,741,544
    Retained earnings (the restricted
     portion of retained earnings is
     $29,532,699 at March 31, 2009 and
     December 31, 2008)                       157,790,182      149,923,681
    Accumulated other comprehensive
     income                                    29,464,472       29,086,006
         Total Shareholders' Equity           353,864,796      345,208,199
    NONCONTROLLING INTEREST                       655,632          652,081
                TOTAL EQUITY                  354,520,428      345,860,280
    TOTAL LIABILITIES AND SHAREHOLDERS'
     EQUITY                                  $524,860,987     $524,054,837

SOURCE American Oriental Bioengineering, Inc.

Source: PR Newswire (May 11, 2009 - 6:00 AM EDT)

NEW YORK, May 5 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB), a China-based pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products, today announced that it plans to release first quarter 2009 financial results on Monday, May 11, 2009, before the market opens.

The Company will hold a conference call at 8:00 am ET on May 11, 2009 to discuss fiscal first quarter 2009 results. Listeners may access the call by dialing 1-800-798-2884 or 1-617-614-6207 for international callers, access code: 34266051. A webcast will also be available through AOB's website at http://www.bioaobo.com . A replay of the call will be available through May 18, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 57318398.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a China-based pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

NEW YORK, March 9 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB - News), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products in China, today announced financial results for the fourth quarter and fiscal year ended December 31, 2008.

Financial Results

Revenue in the fourth quarter of 2008 increased 67.9% year over year to $96.3 million from $57.3 million, reflecting continued demand for the Company's core prescription and OTC pharmaceutical products. Revenue from pharmaceutical products increased 69.9% to $81.2 million from $47.8 million in the prior year's fourth quarter, driven by increased demand for the Jinji Series of products, Shuanghuanglian Injection Powder, and the Cease Enuresis Soft Gel and Patch. Prescription pharmaceutical products generated $28.5 million in revenue during the fourth quarter, up 39.8% year over year, and OTC pharmaceutical products generated $52.6 million in revenue during the fourth quarter, up 92.3% year over year. Nutraceutical products generated revenue of approximately $9.6 million in the fourth quarter of 2008, roughly flat compared to the prior year period. Revenue from nutraceutical products as a percentage of total revenue decreased to approximately 10.0% from approximately 16.6% in the fourth quarter of last year, as the Company continued to focus more on pharmaceutical product sales. The Company generated $5.5 million in distribution revenue since acquiring Nuo Hua on October 18, 2008.

Gross profit in the fourth quarter of 2008 increased 53.9% to $60.0 million from $39.0 million in the fourth quarter of 2007. Gross margin was 62.4%, compared with 68.1% in the prior year's period, reflecting lower margin distribution and CCXA product revenue.

Operating income in the fourth quarter was $11.8 million compared with $18.8 million in the prior year period and primarily reflects a $12.3 million expense for in-process R&D at GuangXi HuiKe ("GHK"), which the Company acquired in the fourth quarter. In line with accounting policies at the time of the acquisition, the Company was required to expense, not capitalize, the estimated future value of GHK's intangible assets. General and administration expenses as well as selling and marketing expenses increased 77% to $22.3 million from $12.6 million in the prior year period. The increase primarily reflects marketing and promotional initiatives related to Jinji and Boke products.

Net income for the fourth quarter of 2008 was $8.0 million, or $0.10 per diluted share. Non-GAAP net income, which excludes interest expense related to the Company's outstanding convertible debt as well as the in-process R&D expense described above, increased 42.7% to $21.7 million, from $15.2 million in the prior year period. Non-GAAP net income per diluted share increased to $0.25 per diluted share in the fourth quarter of 2008, from $0.20 per diluted share in the prior year period. Please refer to the Company's GAAP to Non-GAAP reconciliation table provided below.

Fiscal 2008 Financial Results

Revenue for the fiscal year 2008 increased 64.9% to $264.6 million from $160.5 million in 2007. Prescription pharmaceutical products generated revenue of $87.4 million, up 48.1% from $59.0 million in the year 2007, and OTC pharmaceutical products generated revenue of $137.5 million, up 99.8% from $68.8 million in 2007. The CCXA and Boke businesses contributed revenue of $24.8 million and $38.2 million, respectively, during the fiscal year 2008, compared with $5.4 million and $3.2 million in 2007. CCXA and Boke businesses began contributing to revenue in the third and fourth quarters of 2007. Revenue from nutraceutical products increased 4.9% to $34.3 million from $32.7 million in the year before. Revenue from Nuo Hua's distribution business was $5.5 million and began contributing to results in the fourth quarter of 2008.

Net income in 2008 increased 10.4% to $47.8 million, or $0.61 per diluted share. Non-GAAP net income, as described above and reconciled below, was $62.7 million, compared with $43.3 million in the prior year. Non-GAAP net income per diluted share increased to $0.76 per diluted share from $0.61 per diluted share in the prior year.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "In 2008, we strengthened our leading brands, enhanced our product portfolio, and diversified our operations in a way that lends flexibility to our business model, so that we can navigate China's rapidly changing regulatory environment. We achieved these successes despite the increasingly challenging economic environment worldwide, and we are cautiously optimistic that China's healthcare industry remains somewhat insulated from the global economic crisis. Going into 2009 and 2010, we'll continue to strengthen our core competencies in production, sales and marketing and distribution reach, as well as focus on R&D efforts and our infrastructure, to ensure that we are well-prepared to capitalize on the many opportunities we see in China's healthcare sector."

Conference Call

The Company will hold a conference call at 8:00 am ET on March 9, 2009 to discuss fiscal fourth quarter and full year 2008 results. Listeners may access the call by dialing 1-866-203-2528 or 1-617-213-8847 for international callers, access code: 34183253. A webcast will also be available through AOB's website at http://www.bioaobo.com . A replay of the call will be available through March 16, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 73734657.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a China-based pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products.

Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

    For more information, please contact:

     Integrated Corporate Relations, Inc.
     Ashley M. Ammon
     Tel: +1-203-682-8208



                AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
              CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

                         QUARTER ENDED DECEMBER 31,   YEAR ENDED DECEMBER 31,
                            2008         2007           2008          2007
                          Unaudited    Unaudited      Audited       Audited
    REVENUES             $96,270,506  $57,332,523  $264,643,058  $160,482,383
    COST OF GOODS SOLD    36,222,784   18,302,489    91,031,274    49,364,486

    GROSS PROFIT          60,047,722   39,030,034   173,611,784   111,117,897

    Selling and
     marketing            17,117,853    8,435,612    39,774,330    20,669,303
    Advertising           12,342,238    6,696,321    34,102,538    22,865,903
    General and
     administrative        5,132,162    4,131,923    18,765,757    13,365,156
    Depreciation and
     amortization          1,371,108      936,546     4,383,215     1,989,425
    Purchased in-process
     research and
     development          12,255,248           --    12,255,248            --

    Total operating
     expenses             48,218,609   20,200,402   109,281,088    58,889,787

    EQUITY IN EARNINGS
     (LOSS) FROM
     UNCONSOLIDATED
     ENTITIES               (541,336)          --    (1,132,986)       23,711
    INTEREST INCOME
     (EXPENSE), NET       (1,414,233)     196,352    (2,571,015)      617,524
    OTHER EXPENSE, NET       198,672     (589,087)      (65,843)     (525,065)
    MINORITY INTERESTS       (27,575)          --       (27,575)           --

    INCOME BEFORE INCOME
     TAXES                10,044,641   18,436,897    60,533,277    52,344,280

    INCOME TAXES           2,003,492    3,204,281    12,727,388     9,053,399

    NET INCOME             8,041,149   15,232,616    47,805,889    43,290,881

    OTHER COMPREHENSIVE
     INCOME
    Foreign currency
     translation gain,
     net of tax                  552    5,833,544    12,819,020    10,105,577
    OTHER COMPREHENSIVE
     INCOME, NET OF TAX          552    5,833,544    12,819,020    10,105,577

    COMPREHENSIVE INCOME  $8,041,701  $21,066,160   $60,624,909   $53,396,458

    NET INCOME PER
     COMMON SHARE
      BASIC                    $0.10        $0.21         $0.62         $0.62
      DILUTED                  $0.10        $0.20         $0.61         $0.61
    WEIGHTED AVERAGE
     NUMBER OF COMMON
     SHARES OUTSTANDING
      BASIC               74,566,818   75,386,436    76,504,035    69,870,775
      DILUTED             86,915,928   75,386,436    82,254,185    71,364,244



               AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS

                                                DECEMBER 31,     DECEMBER 31,
                                                    2008             2007
    CURRENT ASSETS
    Cash and cash equivalents                   $70,636,510     $166,410,075
    Accounts receivable, net of reserve of
     $226,330 and $302,270 at December 31,
     2008 and 2007, respectively                 36,982,167       16,494,619
    Inventories, net of provision for slow
     moving inventories                          13,042,123       12,264,536
    Advances to suppliers and prepaid
     expenses                                     3,593,979        4,309,352
    Notes receivable                                708,076        2,259,616
    Refundable deposit                            6,396,996               --
    Deferred tax assets                             347,216               --
    Other current assets                            744,903        5,134,118
             Total Current Assets               132,451,970      206,872,316

    LONG-TERM ASSETS
    Property, plant and equipment, net           98,154,443       48,496,760
    Land use rights, net                        148,988,870       46,310,240
    Deposit for long-term assets                  6,347,174               --
    Construction in progress                     25,385,835          755,614
    Deferred tax assets                           1,313,832        1,498,481
    Intangible assets, net                       23,690,440       26,972,166
    Goodwill                                     28,543,226       22,566,768
    Investments in and advances to equity
     investments                                 54,963,064          242,551
    Unamortized financing costs                   4,215,983               --
            Total Long-Term Assets              391,602,867      146,842,580

                 TOTAL ASSETS                  $524,054,837     $353,714,896



    LIABILITIES AND SHAREHOLDERS' EQUITY
                                               DECEMBER 31,      DECEMBER 31,
                                                   2008              2007
    CURRENT LIABILITIES
    Accounts payable                           $12,287,887        $3,436,352
    Notes payables                               3,262,877            72,254
    Other payables and accrued expenses         19,766,652         7,786,157
    Taxes payable                                  420,671         2,843,719
    Short-term bank loans                        7,140,148         6,289,222
    Current portion of long-term bank loans         58,659         2,374,565
    Other liabilities                            2,253,440         3,548,776
    Deferred tax liabilities                       846,026           109,733
          Total Current Liabilities             46,036,360        26,460,778

    LONG-TERM LIABILITIES
    Long-term bank loans                           804,521         1,263,483
    Long-term notes payable                        269,908           286,365
    Deferred tax liabilities                    16,083,768        12,621,180
    Convertible Note                           115,000,000                --
         Total Long-Term Liabilities           132,158,197        14,171,028
              TOTAL LIABILITIES                178,194,557        40,631,806

    COMMITMENTS

    MINORITY INTERESTS                             652,081                --

    SHAREHOLDERS' EQUITY
    Preferred stock, $0.001 par value;
     2,000,000 shares authorized; 1,000,000
     shares issued and outstanding at June
     30, 2008 and December 31, 2007,
     respectively                                    1,000             1,000
    Common stock, $0.001 par value;
     150,000,000 shares authorized;
     78,249,264 and 77,991,935 shares
     issued and outstanding at December 31,
     2008 and December 31, 2007, respectively       78,249            77,992
    Common stock to be issued                      376,335         1,611,333
    Prepaid forward repurchase contract        (29,998,616)               --
    Additional paid-in capital                 195,741,544       193,007,987
    Retained earnings (the restricted
     portion of retained earnings is
     $29,532,699 at December 31, 2008
     and December 31, 2007)                    149,923,681       102,117,792
    Accumulated other comprehensive
     income                                     29,086,006        16,266,986
         Total Shareholders' Equity            345,208,199       313,083,090
    TOTAL LIABILITIES AND
     SHAREHOLDERS' EQUITY                     $524,054,837      $353,714,896



                     AMERICAN ORIENTAL BIOENGINEERING, INC.
                        Reconciliation of GAAP to Non-GAAP
                           (In US$, except share data)

                                 Fourth Quarter Ended        Year Ended
                                     December 31,            December 31,
                                  2008        2007        2008        2007

    GAAP net income             8,041,149  15,232,616  47,805,889  43,290,881
    Acquisition-related
     in-process research and
     development expense       12,255,248          --  12,255,248          --
    Interest expense            1,437,500               2,635,417
    Non-GAAP net income        21,733,897  15,232,616  62,696,554  43,290,881

    GAAP earnings per share
        -Basic                       0.10        0.21        0.62        0.62
        -Diluted                     0.10        0.20        0.61        0.61

    Non-GAAP earnings per
     share
        -Basic                       0.27        0.20        0.79        0.62
        -Diluted                     0.25        0.20        0.76        0.61

    Shares used in computation
     of GAAP / Non-GAAP
     earnings per share
      Ordinary shares
        -Basic                 74,566,818  75,386,436  76,504,035  69,870,775
        -Diluted               86,915,928  75,663,385  82,254,185  71,364,244

The Company will hold a conference call at 8:00 am ET on March 9, 2009 to discuss fiscal fourth quarter and full year 2008 results. Listeners may access the call by dialing 1-86... or 1-61... for international callers, access code: 34183253. A webcast will also be available through AOB's website at http://www.bioaobo.com . A replay of the call will be available through March 16, 2009. Listeners may access the replay by dialing 1-888-286-8010 or 1-617-801-6888 for international callers, access code: 73734657.

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.