SOURCE: AlphaRx Inc.

August 08, 2005 08:00 ET

AlphaRx Completes Formulation Development of New Product

AlphaRx Begins Toxicology Studies for Binoxan™, a Potential Non-Irritating, Twice-a-Day Eye Drop for Ocular Inflammation

MARKHAM, ON -- (MARKET WIRE) -- August 8, 2005 -- AlphaRx Inc. (OTC BB: ALRX), an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs, is pleased to announce that development of the formulation for Binoxan™, its 2nd ophthalmic product, has been completed and toxicology studies are underway as scheduled.

Binoxan™ is a topical, non-acidic, non-steroidal anti-inflammatory pro-drug in a colloidal formulation intended for the treatment of ocular inflammation, eye pain and photophobia.

Based upon prescription data compiled by IMS Health, it is estimated that over 8.6 million prescriptions are written annually in the U.S. for topical ophthalmic anti-inflammatory agents with sales in excess of USD$400 MM.

The Company hopes to begin clinical studies for Binoxan™ by mid-2006 and is seeking financial resources to support ongoing development, either by out-licensing or a co-development arrangement.

About AlphaRx Inc. (www.AlphaRx.com)

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.

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 Company.

This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com and view the "AlphaRx" Investor Discussion and Contact Forum. In addition, investors are asked to e-mail all questions and correspondence to ALRX@Agoracom.com

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