SOURCE: AXM Pharma, Inc.

June 16, 2005 08:30 ET

AXM Pharma Receives $1.15 Million Purchase Order for First Sunkist Sales in Taiwan

LAS VEGAS, NV -- (MARKET WIRE) -- June 16, 2005 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that it received a $1,157,406 purchase order for the Sunkist brand of nutritional supplements. The purchase order came from Zeullig, Taiwan. This is the first purchase order from the Company's newly created subsidiary in Taiwan for the Sunkist line of products. Total Sunkist purchase orders to date are $2,872,638 and the Company has signed distribution agreements totaling over $20,000,000.

"We are pleased to receive our first initial order from Taiwan. This complements the orders received from Hong Kong and Shanghai, and we look forward to continued orders from all our new territories including Singapore, Malaysia and Thailand," said Peter Cunningham, President of International Sales for AXM Pharma.

The Company further announced today that it will distribute its semi-annual 6% dividend distribution to its outstanding Series C Convertible Preferred Stockholders as of June 21, 2005, the record date. The declaration date of the dividend was June 14, 2005 and the pay date for the distribution is on or about June 29, 2005. Series C shareholders of record shall receive an aggregate amount of approximately 37,078 restricted shares of common stock.

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 full product line includes Elegance, LiveComf, Bodyward, Reheal and LifeGate, Sunkist dissolve-in-the-mouth films and Chew Chew Gummy vitamin products including Vitamin C, zinc lozenge, Echinacea, and other nutraceutical products. AXM Pharma has 42 licenses, which include but are not limited to: Asarone, which is manufactured in tablet form, and is indicated for bronchial infection and bronchial constriction (symptoms of upper respiratory infection); Weifukang, an antiseptic cream for cleansing acne and for relieving the symptoms of eczema, psoriasis and other skin irritations, such as contact dermatitis; and Qiyao, an adjunctive therapy for Type II diabetes.

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