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American Oriental Bioengineering Completes Acquisition of Guangxi Boke Pharmaceutical Company Ltd.
Date:10/18/2007

NEW YORK, Oct. 18 /PRNewswire-FirstCall/ -- American Oriental Bioengineering, Inc. (NYSE: 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 produc
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SOURCE American Oriental Bioengineering, Inc.
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