SOURCE: AXM Pharma, Inc.

May 11, 2005 08:00 ET

AXM Pharma Rapidly Fulfilling Purchase Orders From Over $20 Million in Distribution Agreements in 2005; Signs $500,000 New Distribution Agreement

LAS VEGAS, NV -- (MARKET WIRE) -- May 11, 2005 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that the Company has begun manufacturing and shipping Asarone and Elegance for orders received from distribution agreements announced in March and April which total over $20 million. These sales are part of a total of $2,221,403 in purchase orders received in 2005 for Asarone, Elegance and Lifushu products. The Company also signed an additional $544,135 distribution agreement with Beijing XinRenYou for the Company's line of Whisper feminine hygiene products for distribution in Beijing.

"Our products have been rapidly accepted in Chinese markets. Our Distributors are ordering product from their distribution agreement commitments and the customers are responding with enthusiasm," said Madame Wang, Chairman of AXM Pharma.

In response to recent calls from investors regarding false rumors that have been circulating about the Company, its operations and listing, AXM's new plant is operational, has not shut down and is manufacturing product. AXM is currently fulfilling purchase orders and has the capital on hand to fulfill all orders to date. The Company has announced over $20 million in distribution agreements and has received total purchase orders of $2,221,403 for Asarone, Elegance and Lifushu products as well as $1,680,000 in purchase orders for Sunkist products. The Sunkist orders are the first of a group of orders that are occurring monthly. AXM is not in violation of any American Stock Exchange listing requirements and there is no risk to the Company's listing status. The Company would like to remind investors that the only reliable source of information on the Company is in the Company's regulatory filings. Filings can be found on the Company's web site at www.axmpharma.com or at the US Securities and Exchange Commission at www.sec.gov.

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.

Contact Information

  • Contact Information:
    Tom Bostic
    Investor Communications Company, LLC
    (866) 562-0134