American Oriental Bioengineering Sees Significant Business Opportunities and Profit Potential From Soybean Protein Peptides

HARBIN, China, Dec. 19 -- American Oriental Bioengineering, Inc. (OTC Bulletin Board: AOBO), a leading producer and developer of bioengineered products and Chinese medicine in China, reports that management expects significant growth potential for its soybean protein peptide business. Within Chinese market, it is estimated that there will be an unmet demand for soybean protein peptides of over 200,000 tons within the next five years. The Company believes that its recent acquisition of a soybean protein peptide operation positions them to take full advantage of this expected increase in demand.

Since the 1950s, the worldwide production of soybean protein peptide and development of its extraction technologies has developed dramatically. In the US, Japan and other developed countries, soybean protein peptide has been increasingly deployed as a health food additive and protein supplement. The current market for soybean protein peptide products in Hong Kong is approximately US$200 million annually. The average soybean protein peptide consumption rate in China, 2.4 kilograms, is still extremely low when compare to US and Japan, which are consuming 70 kilograms per capita and 16 kilograms per capita, respectively.

The Company's soybean protein peptide manufacturing plant currently has the ability to produce 1,000 tons annually with plans to increase this capacity by 50% to 1,500 tons per year to meet the anticipated demand. AOBO has engaged a specialized medicine marketing firm to work on the packaging, branding and marketing of the Company's soybean protein peptide medical tablets and powder-based products. Recently, AOBO has filed for a patent covering its process for the efficient extraction and production of soybean peptides and management plans to apply for ISO certifications for soybean protein peptide production in early 2003.

Soybean Protein Peptide is a biological functional active peptide substance, which is a protein molecule composed of two or more units of amino acids. It is derived from the soybean as a raw material through the enzyme driven chemical engineering process of cutting, decomposition, conversion and synthesis. Soybean Protein Peptide can be easily absorbed by the human body, meet the body's need for special high-energy nutrition, accelerate metabolism, and at the same time improve body immunity. When the human body takes in the protein and absorbs it in the form of a protein peptide, the ratio of protein absorption is greatly increased. Soybean Protein Peptide has many functions including; suppressing tumors, lowering blood pressure, relieving pains, curing diabetic disease and enhancing immunity ability. Because of its fast absorption rate and multi functionality in the human body, it can become a powerful agent as an additive in various foods and beverages including milk, tea, coffee and beer.

Tony Liu, President of AOBO, made the following comments concerning the Company's peptide operations, "We are very pleased with the potential revenue opportunities of this soybean protein peptide project. After six years of effort, AOBO has become the leading company in mastering the technology of mass production for soybean protein peptides in China. We have achieved outstanding pre-clinical results applying our soybean protein peptide in suppressing tumors. These results have created a substantial competitive edge for AOBO's products and will support AOBO's future revenue generating abilities. The new product line will be distributed through our current distribution system of approximately 2,000 retail outlets and drugstores. We feel we are well positioned to take advantage of the increased demand for traditional Chinese medicine, and especially poised to take advantage of the growing demand for soybean protein peptide products both domestically and internationally."

About American Oriental Bioengineering, Inc.

American Oriental Bioengineering, Inc. is a leading Chinese nutracuetical 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. The Company focuses on new product research to combine biotechnology and Chinese medical technology to capture the increasing demand for traditional Chinese medicines and health supplements, both domestically and internationally. Soybean peptides are used widely in general food and health food products, sports foods, medicines, fermentation industry and in environmental protection applications. Soybean peptides have been shown to be easily absorbed by the body, and experiments have shown that soybean peptides can lower blood pressure and blood fat levels, enhance immunity, lower cholesterol, prevent cardiac and brain blood vessel diseases, and inhibit the growth of tumors. The Company sees significant opportunities for the marketing of these soybean products and many of their other bioengineer products.

Safe Harbor Statement

Except for the historical statements made herein, the statements made in this release are forward-looking statements, including. Risk factors that could cause actual results to differ materially from those projected in forward-looking statements include, but are not limited to, general business conditions, managing growth, and political and other business risks. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurance that the Company's expectations are correct. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risks and other factors detailed in the Company's reports filed with the Securities and Exchange Commission.

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