American Oriental Bioengineering Signs Letter of Intent to Acquire Pharmaceutical Wholesale and Retail Company
American Oriental Bioengineering Signs Letter of Intent to Acquire Pharmaceutical Wholesale and Retail Company
Acquisition Expands Distribution for Company's Products Throughout China
May 6, 2005
HONG KONG, (PRIMEZONE) -- America Oriental Bioengineering Inc, (OTCBB:AOBO), a rapidly growing Chinese company which produces and distributes a broad range of pharmaceutical and nutraceutical products, today announced the signing of a legally-binding letter of intent to acquire Heilongjiang Qitai Pharmaceutical Limited ("HQPL"), a leading Chinese distributor of pharmaceuticals. HQPL is certified by the China FDA, and is in compliance with China's Good Sales Practices (GSP) for Pharmaceutical Products.
AOBO entered into a letter of intent with HQPL on May 1, 2005 to record AOBO's intention to acquire HQPL. AOBO plans to use $4 million to acquire approximately $4.5 million (unaudited) worth of HQPL's net assets, a HQPL pharmaceutical wholesale and retail network that covers the entire country of China, a HQPL pharmaceutical retail distribution license and a HQPL Chinese herbal and medicinal material wholesale exchange which is GSP certified as well as certified by the Chinese government.
Mr. Tony (Shujun) Liu, Chief Executive Officer of AOBO, said, "AOBO's acquisition of HQPL will enable AOBO to penetrate the wholesale and retail pharmaceutical market. This helps the Company achieve one of its long-term goals to build a distribution network for its products. With the acquisition, AOBO will have the license to produce plant-based pharmaceutical and nutriceutical products with the GMP certification, and at the same time, have the license to distribute its products via a strong wholesale and retail network. This is unique for the Chinese pharmaceutical manufacturing industry and will improve and strengthen our marketing capabilities and further enhance profitability."
Mr. Liu further said, "For the past five years, the Chinese government has been implanting GMP certification, closing nearly one-third of over 4,000 pharmaceutical manufacturers who do not meet GMP standards. In addition, the Chinese government has been implementing GSP certification, closing nearly half of over 20,000 pharmaceutical wholesaler and retailers who do not meet this standard. In this context, AOBO's acquisition of HQPL is strategically significant. With its own wholesale and retail network that meets GSP standards, AOBO can directly market its products. This should make AOBO more competitive, and have a significant impact on its sales performance and profits."
About American Oriental Bioengineering, Inc.
American Oriental Bioengineering, Inc. (OTCBB:AOBO) is a leading Chinese biotechnology company that uses proprietary processes for producing soybean protein peptide more efficiently than traditional extracting techniques. These techniques are used to manufacture and formulate supplemental and medicinal products. Soybean peptides are used widely in general food, health food products and medicines, among other applications. AOBO also produces Cease-Enuresis Soft Gel, the only Chinese FDA-approved first grade, prescription medicine that is specially formulated to help alleviate bed-wetting and incontinence. The Company is a leading producer of products in both the nutriceuticals and pharmaceuticals areas in China. For more information, visit
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