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American Oriental Bioengineering Completes Two Acquisitions
Date:10/21/2008

des us with a diverse range of incremental wholesale and retail distribution opportunities, such as in new top-tier hospitals and rural areas, both of which bolster our long-term growth capabilities. GHK lends the innovation we need to bring new products to market quickly and effectively, and brings us several existing patents, a fantastic team of product specialists, and industry know-how in China's complex pharmaceutical registration process."

Liu continued, "The combination of Nuo Hua and GHK together is particularly exciting because we can leverage new product development across our enhanced wholesale and retail distribution network, which, through Nuo Hua, now covers major top-tier (Class II and Class III) hospitals in Northern China, additional provincial and municipal hospitals, lower level distributors and retail chain pharmacies throughout the country. As a result of these two transactions, we anticipate at least three new product launches next year and at least ten in 2010. Each of these products targets an addressable market size of at least $200 million annually. We look forward to building on our proven marketing skills with a more robust product pipeline and a more formidable distribution presence going forward."

Nuo Hua Investment Company, Ltd.

Nuo Hua Investment Company Ltd. ("Nuo Hua"), through its subsidiaries and affiliate companies, distributes more than 6,000 pharmaceutical products through an extensive sales network covering major urban and rural areas in China. Nuo Hua's distribution platform covers major top-tier (Class II and Class III) hospitals in Northern China, and also includes provincial and municipal hospitals, lower level distributors and retail chain pharmacies throughout the country. Nuo Hua has achieved a compound annual revenue growth rate of more than 30 percent since fiscal 2006. In 2009, AOBO anticipates that it will consolidate revenue from Nuo Hua of approximately $80 million and net income of $2.3 milli
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SOURCE American Oriental Bioengineering, Inc.
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