American Oriental Bioengineering, Inc. Closes $60 Million Private Placement

HONG KONG--(BUSINESS WIRE)--Dec. 9, 2005--American Oriental Bioengineering, Inc. (AMEX:AOB), a leading Chinese manufacturer and distributor of pharmaceutical and nutraceutical products, announced today that it has closed its private offering to accredited investors of 12.5 million units at a price of $4.80 per unit, for gross proceeds of $60 million. Each unit consists of one share of common stock, par value $0.001 per share, and three tenths of a warrant to acquire one share of common stock at an exercise price of $6.50 per share. The co-placement agents were CRT Capital Group LLC and Westminster Securities Corp. The proceeds will be used for potential acquisitions and general corporate purposes.