SOURCE: AXM Pharma, Inc.

July 28, 2005 10:30 ET

AXM Pharma and Major Fast Food Restaurant Chain in Hong Kong Initiate Joint Marketing Agreement for Sunkist ChewChew Products

LAS VEGAS, NV -- (MARKET WIRE) -- July 28, 2005 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that it has initiated a joint marketing agreement with a major fast food restaurant chain in Hong Kong to provide mass sampling of AXM's Sunkist ChewChew gummy vitamins to be included in the chain's birthday party events for children and summer activity giveaway.

Under the terms of the agreement, AXM will provide the ChewChews for inclusion in children's events. As per the agreement, AXM is unable to name the restaurant chain. The chain in Hong Kong has over 200 restaurants and more than 10,000 staff, with over 30,000 restaurants in more than 100 countries worldwide. The promotion of the product will begin in August 2005.

"We are extremely excited to be working with this world wide chain in Hong Kong on this program. With the anticipated success, we plan to expand our relationship with the chain and to initiate similar types of programs throughout the Asian region," stated Chet Howard, CEO of AXM Pharma, Inc.

Sunkist, http://www.sunkist.com, has been among the world's most recognized brands for more than 100 years. Worldwide, consumers consistently rank Sunkist in the top 90th percentile for attributes of quality, esteem, stature, vitality, relevance and differentiation. The Sunkist brand can be found in a variety of product categories, including popular soft drinks, fruit juices and fruit snacks. Sold in more than 50 countries, Sunkist branded products generate more than $2 billion in annual sales.

AXM Pharma's exclusive relationship with Sunkist extends beyond traditional vitamin and supplement dosage forms. In 2004, AXM Pharma acquired the exclusive rights to several oral drug delivery technologies including the transfer of intellectual property and technical support for formulation and manufacturing processes, as well as distribution rights throughout Asia. These technologies include chewable tablets, capsules, lozenges and certain formulations of Soluleaves™, an oral drug delivery technology using dissolve-in-the-mouth films.

AXM Pharma's product line is as deep as it is diverse. AXM Pharma now has 10 vitamin and nutritional supplements marketed in China under the Sunkist trademark and expects to expand the product line significantly across Asia. The products will be distributed by China Zuellig Xin Xing. China Zuellig is a subsidiary of the Interpharma Group, which is the largest pharmaceutical distributor in Asia, with annual revenues exceeding US$ 3.0 billion, 125 multinational clients, more than 100,000 direct accounts and 4,000 employees.

AXM Pharma Inc., http://www.axmpharma.com, 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 http://www.iccinfo.com 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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