NEW YORK, Jan. 13 /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 announced that the PRC government, led by the Ministry of Science and Technology of China, the Ministry of Finance and the State Administration of Taxation, jointly granted three of the company's subsidiaries, Heilongjiang Songhuajiang Pharmaceutical Co., Ltd. ("HSPL"), Changchun Xin'an Pharmaceutical Co., Ltd. ("CCXA"), and Three Happiness Bioengineering Co., Ltd. ("Three Happiness") high-tech enterprise status. Prior to today's announcement, AOBO's other two subsidiaries: Guangxi BOKE Pharmaceutical Co., Ltd. ("BOKE") and Guangxi Lingfeng Pharmaceutical Co., Ltd. ("GLP") were already approved for the designation from the local provincial government, and the Company anticipates finalizing the certification from the central government in the near future. With today's announcement, five of AOBO's subsidiaries, throughout different provinces, have received recognition to benefit from a 15 percent tax rate through 2011, at the subsidiary level. Additionally, according to the China Banking Regulatory Commission Guiding Opinions Number 94, companies with high-tech status are eligible for benefits in addition to the 15 percent tax rate, potentially including preferential treatment in obtaining other support from the government such as obtaining financial support from the PRC's special Technological Development Fund, and to receive competitive commercial bank loans and subsidized interest.
Mr. Tony Liu, Chairman and CEO of AOBO, stated, "Receipt of high-tech enterprise status further demonstrates the fundamental strength of our business particularly related to our proprietary products and innovation at the subsidiary level. By having this recognition from the government, we are laying the groundwork for our future growth with eligibility for government funding and grant incentives. We are truly proud that AOBO achieved this esteemed status, especially given that very few companies have successfully achieved this status."
High-tech status is awarded by the PRC to recognize companies that consistently invest in new product development, and have substantial revenues generated by their own proprietary patented or innovative products. In this way, the Chinese government encourages domestic and foreign investment in advanced technologies, and has created a series of preferential tax policies to stimulate and promote the production of high-tech products, the provision of high-tech related services and technology transfers into and within China. The Ministry of Science and Technology of China, the Ministry of Finance and the State Administration of Taxation jointly promulgated the Measures For the Recognition and Administration of New and High-Tech Enterprises, which clearly specifies the requirements for the recognition and administration of new and high-tech enterprises.
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering, Inc. is a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter products in China.
Statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. The economic, competitive, governmental, technological and other factors identified in the Company's filings with the Securities and Exchange Commission, including the Form 10-Q for the quarter ended September 30, 2008, may cause actual results or events to differ materially from those described in the forward looking statements in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
|SOURCE American Oriental Bioengineering, Inc.|
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