From Earlier: American Oriental Bioengineering Announces Undergoing SFDA Directed Inspection of Capsules

American Oriental Bioengineering, Inc.

yesterday announced that four out of its five manufacturing subsidiaries are undergoing onsite short notice inspections directed by China State Food and Drug Administration. On 4/16/2012 China SFDA circulated an urgent notice nationwide calling for immediate suspension of sales and manufacturing of certain capsule products, sparked by the discovery of thirteen kinds of capsule products with origins from Qinghai and Changchun, etc. containing chrome far exceeding humanly tolerable limits . SFDA directed onsite short notice inspections of a number of capsule manufacturers, including our following manufacturing subsidiaries: Guangxi Lingfeng Pharmaceutical, Boke Pharmaceutical, Harbin Three Happiness Pharmaceutical, and Changchun Xinan Pharmaceuticals. Capsules are major product formulations for above subsidiaries.