158 of American Oriental Bioengineering's drugs included in China's 2009 NIC

American Oriental Bioengineering, Inc. (NYSE: AOB), ("the Company" or "AOBO"), a pharmaceutical company dedicated to improving health through the development, manufacture and commercialization of a broad range of prescription and over the counter ("OTC") products, today announced that 158 of the Company's drugs have been included in China's National (Medical) Insurance Catalog (the "2009 NIC"). Of these, 82 are categorized as Class A drugs and 76 are categorized as Class B drugs. Most importantly, Jinji Capsule, AOBO's best selling national branded product, has been added to the 2009 NIC since its last publication in 2004.

The 2009 NIC was released by China's Ministry of Human Resources and Social Security on November 30, 2009 as part of China's healthcare reform. According to the Chinese government, ninety percent of China's citizens will be covered by a universal healthcare system by the end of calendar 2010. As China's official drug reimbursement list, the 2009 NIC features 2,151 drugs, which are categorized as Class A (fully covered) or B (partially covered). All drugs are classified into three categories: 1) Western Chemical Drugs (349A+791B); 2) modernized Traditional Chinese Medicine (TCM) (154A+833B); and 3) TCM decoction pieces. The implementation of the plan is required immediately for Class A drugs and by 3/31/10 for Class B drugs.

Mr. Tony Liu, Chairman and Chief Executive Officer of American Oriental Bioengineering, commented, "We are very honored that a total of 158 drugs produced by our five subsidiaries have been included in China's National Insurance Catalog. Of these, 82 products are fully reimburseable as Class A drugs and 76 qualify for partial reimbursement as Class B drugs. We are especially pleased about the inclusion of our best-performing and flagship women's health product, Jinji Capsule, in the NIC. Jinji Capsule is a widely recognized product to treat gynecological inflammation, including endometritis, annexitis and pelvic inflammations. Based on government data, 147 million women in China suffer from gynecological inflammation, and we believe that partial reimbursement for this drug will boost sales of Jinji Capsule nationwide."

Mr. Liu continued, "The 2009 NIC is a vital guideline for the expanding universal healthcare system, which aims to cover the vast majority of the population. The NIC will be fully implemented in 2010, making more drugs affordable and greatly expanding the addressable pharmaceutical market in China. We believe that the inclusion of our products in the NIC, in addition to further increasing brand recognition, will hasten our expansion into key therapeutic areas."