American Oriental Bioengineering Completes Acquisition of Guangxi Boke Pharmaceutical Company Ltd.

    NEW YORK, Oct. 18 /PRNewswire-FirstCall/ -- American Oriental
 Bioengineering, Inc. ( AOB) ("AOBO"), a leading manufacturer and
 distributor of plant-based pharmaceutical and nutraceutical products, today
 announced that it has completed the acquisition of Guangxi Boke
 Pharmaceutical Company Limited ("Boke"). The purchase price for this all
 cash transaction is approximately USD$36.5 million (RMB 274 million) and
 the acquisition is accretive immediately upon closing.
     Boke is located in the city of Nanning in the Guangxi province of China
 and was founded in 1995. Boke manufactures and distributes plant-based
 pharmaceutical, nutraceutical and personal care products, marketed
 primarily in China, with the majority of its products sold
 over-the-counter. The Company's major revenue generating product line
 alleviates nasal congestion and provides sinus relief, and is available in
 spray, tablet, capsule and granule formulations. Other products include a
 medical shampoo product approved by China's Ministry of Health to treat
 dandruff, as well as lozenges to alleviate sore throat symptoms. In 2006,
 Boke generated revenues of approximately USD$12.0 million (RMB 91 million)
 and was profitable. Boke's manufacturing facility in Nanning is a GMP
 certified manufacturing facility. The Company has a sales force that
 exceeds 600 individuals and an expansive distribution network of primarily
 pharmacies throughout China.
     Tony Liu, Chief Executive Officer of AOBO stated, "We are very pleased
 to close this transaction. Boke has an exciting portfolio of products,
 including its nasal congestion and sinus relief products, that can be used
 by a large segment of the population in China. This acquisition further
 diversifies our product offering, provides added consistency to our revenue
 stream and allows us the opportunity to strengthen our OTC distribution
 network in China."
     "As we move forward, we intend to select Boke's most promising and
 profitable products to leverage across our large distribution network. We
 see the opportunity to further strengthen Boke's product line, improve
 operating efficiency, and maximize pricing for their leading products. We
 are eager to integrate our latest acquisition into AOBO's corporate culture
 and look forward to their many contributions to our business in the years
 to come," concluded Liu.
     The monetary exchange rate used for this transaction is US$1.00 : RMB
 7.51.
     About American Oriental Bioengineering, Inc.
     American Oriental Bioengineering is a leading, fully integrated, plant
 based pharmaceutical and plant based nutraceutical company dedicated to
 improving health through the development, manufacture and commercialization
 of modernized plant based products in China.
     Safe Harbor Statement
     This news release contains forward-looking statements as defined by the
 Private Securities Litigation Reform Act of 1995. Forward-looking
 statements include statements concerning plans, objectives, goals,
 strategies, future events or performance, and underlying assumptions and
 other statements that are other than statements of historical facts. These
 statements are subject to uncertainties and risks including, but not
 limited to, product and service demand and acceptance, changes in
 technology, economic conditions, the impact of competition and pricing,
 government regulation, and other risks contained in reports filed by the
 Company with the Securities and Exchange Commission. All such
 forward-looking statements, whether written or oral, and whether made by or
 on behalf of the company, are expressly qualified by the cautionary
 statements and any other cautionary statements which may accompany the
 forward-looking statements. In addition, the company disclaims any
 obligation to update any forward-looking statements to reflect events or
 circumstances after the date hereof.
 
 

SOURCE American Oriental Bioengineering, Inc.