SOURCE: AlphaRx Inc.

May 19, 2005 08:00 ET

AlphaRx Gains Access to Asian Markets Through Joint Venture

MARKHAM, ON -- (MARKET WIRE) -- May 19, 2005 -- AlphaRx Inc. (OTC BB: ALRX) is pleased to announce that through its wholly owned subsidiary AlphaRx International Holdings Limited, it has entered into an equally owned Joint Venture agreement with Basin Industrial Limited, a wholly owned subsidiary of Advance Pharmaceutical Co. Ltd. ("APC") based in Hong Kong. This Joint Venture will allow AlphaRx to effectively penetrate the Asian pharmaceutical market with a well-established and reputable partner.

The newly formed Joint Venture will be named Alpha AP Inc. ("AAP"), and will be headquartered in Hong Kong. Under the terms of the Joint Venture agreement, APC will fund the Joint Venture manufacture and market the products in China, Hong Kong, Korea and Japan. It is the intention of the parties involved to take the Joint Venture public on the Hong Kong Stock Exchange.

Under the terms of the licensing agreement, AlphaRx will provide 3 topical products to the Joint Venture, to be marketed under the APC brand. In addition to its 50% equity in the Joint Venture, AlphaRx will receive a 5% royalty from the Joint Venture's gross sales. AlphaRx will also receive a one time licensing fee of US$10M from the Joint Venture, contingent upon completion of its Hong Kong public stock offering.

About Advance Pharmaceutical Co.

Over the years, APC has evolved from a drug trading company to a pharmaceutical manufacturer, and after a recent US$10M expansion to its plant, it has become a leading Asia-based pharmaceutical company with a vertically integrated platform: research & development, manufacturing, design, marketing, sales, logistics and distribution. Today, APC has successfully established a leading presence in Southern China. Several of its drugs command a lead market share in Hong Kong and Southern China. While it continues to manufacture OEM drugs for drug stores and companies, its long-term vision is to be a competitive leader with a brand development platform to continually develop and create innovative and superior drugs, to meet the needs of today's increasingly health-conscious consumer.

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 current focus is on the clinical development of Indaflex™, a topical NSAID (Non-Steroidal Anti-inflammatory Drug) formulation intended for use in the treatment of the symptoms of arthritis. Arthritis is the most common chronic condition in North America, affecting 20 million Americans annually and afflicts an estimated 10% of the world's population. Indaflex's active ingredient, Indomethacin, has a long-standing and proven clinical treatment record. With AlphaRx's enhanced proprietary delivery system, the Company believes Indomethacin's clinical effectiveness will be significantly enhanced when compared to other topical preparations. Topical Indaflex delivery, the Company anticipates, will circumvent the significant GI and other systemic side-effects found with orally ingested NSAID's. For more information, please visit www.AlphaRx.com.

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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