SOURCE: AlphaRx Inc.

October 12, 2006 08:00 ET

AlphaRx Files Second U.S. Patent Application for Its Nanoparticle Drug Delivery Platform

MARKHAM, ON -- (MARKET WIRE) -- October 12, 2006 -- AlphaRx Inc. (OTCBB: ALRX) announces that the Company has filed a second patent application with the U.S. Patent and Trademark Patent Office for its nanoparticle-based drug delivery platform covering several antibiotic products being developed by the Company targeted to treat life threatening infectious diseases.

Presently, the Company, using its nanoparticle drug delivery platforms, is focusing on the development of Zysolin™ for Hospital Acquired Pneumonia (HAP) and Vansolin™ for Sepsis. Each of these unmet indications have multi-million-dollar market potential. The Company plans to advance these two products into human trials in mid-2007.

Zysolin™ is a nanoparticle encapsulated formulation of Gentamicin, a broad spectrum antibiotic targeted for intracellular delivery. This drug candidate is currently undergoing in-vivo studies including: biodistribution studies, evaluation of the efficacy in murine infection models and toxicological studies. HAP is the second most common hospital-acquired infection. It affects approximately 300,000 patients in the United States annually and is associated with mortality rates of 30 to 33 percent for hospitalized patients and mortality rates as high as 70% for patients in the ICU setting.

Vansolin™, the active ingredient is Vancomycin, a very powerful antibiotic used mainly in hospitals to treat life threatening infectious disease such as hospital-acquired pneumonia, ventilator associated pneumonia and severe sepsis. The Company believes that encapsulating Vancomycin into a nanoparticle formulation may increase its efficacy. The Company anticipates that in vivo, after IV infusion, white blood cells will readily absorb Vansolin™ nanoparticles and transport them to the site of inflammation and infection, thereby increasing the local concentration of Vancomycin and ultimately increasing its bactericidal effect.

The Company's nanoparticle drug delivery system offers the advantage of a targeted or site-specific delivery of antibiotics and other drugs to affected cells over an extended period, thereby increasing drug efficacy while reducing toxic side effects.

This press release is available on the Company's official online Investor Relations HUB at http://www.agoracom.com/IR/AlphaRx for investor questions, answers and monitored commentary. Alternatively, investors are able to e-mail all questions and correspondence to ALRX@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time.

About AlphaRx Inc.

AlphaRx is an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs that are insoluble or poorly soluble in water or have yet to be administrable to the human body with an acceptable delivery method. The Company's product candidates address various pharmaceutical markets, including arthritis, tuberculosis, ocular infection and inflammation, cataracts, hospital-acquired pneumonia and sepsis.

Forward-Looking Statements:

This release contains forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995 and involve risks and uncertainties that may individually or mutually impact the matters herein described, including but not limited to product development and acceptance, manufacturing, competition, regulatory and/or other factors, which are outside the control of the companies.

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