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American Oriental Bioengineering Reports First Quarter 2010 Financial Results
Date:5/10/2010

p;D centre in Beijing.

Net income attributable to controlling interest for the first quarter of 2010 was $3.1 million, compared to $7.2 million in the prior year period. The Company's net income attributable to controlling interest was $0.04 per diluted share, compared to $0.10 per diluted share in the same period of 2009.

Balance Sheet

As of March 31, 2010, the Company had $99.0 million in cash and cash equivalents, including restricted portions, and generated approximately $5.8 million of operating cash flow during the first quarter of 2010. Working capital was $136.9 million as of March 31, 2010, reflecting an increase of 4.6% from $130.9 million as of December 31, 2009.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are very satisfied with our performance in the first quarter, despite the challenging global economic environment and the changing Chinese regulatory environment. During the past quarter, we continued to invest heavily in R&D, which consumed 5% of total revenue, in order to upgrade our existing products and develop new proprietary products to lay a solid foundation for AOBO's near term and long term growth. Meanwhile, we continued to fortify our market position, strengthen our presence in rural areas, and diversify our business operations through cost control, advertising campaigns, and sales network expansion. We are confident that we will achieve initial
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SOURCE American Oriental Bioengineering, Inc.
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