NEW YORK, Jan. 9 /PRNewswire-Asia-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: AOB) ("AOBO" or "the Company"), a leading marketer, distributor and manufacturer of pharmaceutical and healthcare products in China, today commented on its recent purchase of buildings and land in the Beijing Economic-Technological Development Area (BDA) for approximately $70.0 million.
Mr. Tony Liu, Chairman and Chief Executive Officer of AOBO, stated, "Our recent property purchase in the BDA is a long-term investment in AOBO which builds out our multi-functional headquarters and centralizes our management in Beijing, while deepening our presence in a very important development region focused on attracting leading pharmaceutical companies. Additionally, at a time when our significant cash position yields negative real returns, this fixed asset allocation does not constrain our financial flexibility, but rather, we believe, positions us to secure government support in various forms, such as R&D grants related to the PRC's stimulus plan as well as potential low-interest bank loans."
Liu continued, "While we have not always elaborated on our motivations at the time, due to economic, competitive and other reasons, we consistently and effectively have navigated China's complex economic and competitive landscape, and have created significant shareholder value in the process. We believe this property purchase is no departure from AOBO's proven past."
"Our goal remains consistent. We continue to focus on becoming a top-five
pharmaceutical company in China and we are aggressively yet prudently pursuing
organic and acquisition-led growth. We emphasize that China's challenging
economic environment and the uncertainty created by the upcoming healthcare
reform necessitates that we remain flexible, influential a
|SOURCE American Oriental Bioengineering, Inc.|
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