American Oriental Bioengineering Reports Fourth Quarter and Full Year 2007 Financi...(p Deferred tax liabilities ...),Health

Deferred tax liabilities 12,621,180 4,580,698

Other liabilities - 9,083

Total Long-Term Liabilities 14,171,028 5,761,526

TOTAL LIABILITIES 40,631,806 29,096,704

COMMITMENTS

SHAREHOLDERS' EQUITY

Preferred stock, $0.001 par value;

2,000,000 shares authorized;

1,000,000 shares issued and

outstanding at December 31, 2007 and

2006 1,000 1,000

Common stock, $0.001 par value;

150,000,000 shares authorized;

77,991,935 and 64,230,369 shares

issued and outstanding, at December

31, 2007 and 2006, respectively 77,992 64,230

Stock to be issued 1,611,333 599,069

Additional paid-in capital 193,007,987 92,307,960

Retained earnings (the restricted

portion is $15,910,685 and

$8,498,766 at December 31, 2007 and

2006, respectively) 102,117,792 58,826,911

Accumulated other comprehensive

income 16,266,986 4,378,072

Total Shareholders' Equity 313,083,090 156,177,242

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY $353,714,896 $185,273,946

AMERICAN ORIENTAL BIOENGINEERING, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Quarter Ended December 31, Year Ended December 31,

2007 2006 2007 2006

REVENUES $57,332,523 $41,258,250 $160,482,383 $110,182,092

COST OF GOODS SOLD 18,302,489 14,054,600 49,364,486 38,318,223

GROSS PROFIT 39,030,034 27
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