SOURCE: AXM Pharma, Inc.

June 23, 2005 08:30 ET

AXM Pharma to Receive a Nearly $3.5 Million Advance for Commercial Airtime From Harbin Xiao Sheng Advertising & Broadcast Company for Whisper National Television Ad Campaign

LAS VEGAS, NV -- (MARKET WIRE) -- June 23, 2005 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that it has signed a joint advertising agreement with Harbin Xiao Sheng Advertising & Broadcast Company ("Xiao Sheng") for national television advertising campaign for the Company's line of Whisper feminine hygiene products. The campaign is to begin immediately.

Under the terms of the agreement, Xiao Sheng will advance approximately US$3.5 million for the purchase of commercial airtime on behalf of AXM Pharma. Xiao Sheng has agreed to advance the funds based upon its confidence in the product and sales potential. The total advertising campaign is RMB 60 million (USD $7.3 million). Harbin Xiao Sheng Advertising & Broadcasting Company is one of the top 10 largest advertising companies in China with relationships with satellite TV stations throughout China. By utilizing several local stations -- each of whom have the capacity to hit a constellation of cities and regions -- AXM Pharma will be able to inundate the entire country with Elegance commercials on multiple stations at any given time.

"We are pleased to be working with such a respected group in the advertising arena. The acceptance for our Whisper line continues to grow weekly and with a national advertising campaign, we look forward to establishing a significant market share for feminine products," said Madame Wang, Chairman of AXM Pharma.

The Whisper line includes Elegance Therapeutic Feminine Hygiene Wash, which is a feminine hygiene wash formulated with 8 herbal extracts and pH balanced. The product is positioned as a therapeutic wash to relieve vaginal itch and vaginitis and to sooth any vaginal irritation that may be present.

The Elegance Therapeutic Feminine Hygiene Wash target channel is pharmacies and supermarkets, whose growth is driven in part by the government's changes in healthcare financing, causing the consumer to purchase healthcare products in retail pharmacies; ending the practice of government subsidized dispensing of healthcare products in hospital outpatient wards.

AXM Pharma Inc.,, through its wholly owned subsidiary, Werke Pharmaceuticals, Inc., is the 100% owner of AXM Pharma Shenyang, Inc. ("AXM Shenyang"), a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the People's Republic of China. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang and its predecessor company Shenyang Tianwei Pharmaceutical Factory, Ltd. ("STPF"), has an operating history of approximately 10 years. AXM Shenyang historically has been a manufacturer of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. For additional information on AXM Pharma Inc, please visit or call Investor Communications Company, LLC at 866 562 0134.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company's operations, markets, services, products and prices. With respect to AXM, except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, AXM's extremely limited operating history, uncertainties related to the Company's access to additional capital, competition and dependence on key management.

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    Investor Communications Company, LLC
    (866) 562-0134