AOB 30 Million US Dollars Acquisition of Xinan Pharmaceutical Companies

On June 13, 2007, American Oriental Bioengineering Inc (NYSE: AOB) signed letters of intent to acquire Changchun Xinan of enterprises invested 30 million US dollars in cash. The headquarters in China's Harbin American Oriental Bioengineering and Xinan are plant-based drug and health care products companies, in fact competitors. In June 4, American Oriental Bioengineering Inc. New issue 15 million shares of stock, the company founder and chief executive also provided 2 million shares to raise funds. Before the stock in the new, American Oriental Bioengineering Inc. Has 65 million shares outstanding. The newly issued shares will finance 150 million US dollars, the company cash flow for 90 million US dollars. Changchun Xinan possession of prescription drugs, non-prescription drugs and female health supplies, and is GMP production facilities. Changchun Xinan profit in the 2006 Annual Report. The acquisition helps American Oriental Bioengineering Inc. Rapid growth of its gross income from 2001 of 10 million US dollars grew by 11 times to 2006 for 110 million US dollars, profitability 31 million US dollars. Last year, cash flow from operations reached 29 million US dollars. Current market value for 626 million US dollars. American Oriental Bioengineering Inc. Drug sales is the largest freeze-dried powder for injection Shuanghuanglian cent last year, sales of 25 percent annual increases 69%.

Source: 中国医药技术经济网 Jun. 15, 2007