Bioxel Pharma Inc.
TSX VENTURE : BIP

Bioxel Pharma Inc.

August 24, 2006 15:30 ET

Bioxel Continues Europe Expansion

SAINTE-FOY, QUEBEC--(CCNMatthews - Aug. 24, 2006) - Bioxel Pharma Inc. (TSX VENTURE:BIP), a leading manufacturer and supplier of taxane APIs and developer of targeted oncology drugs, is pleased to announce that it has begun commercial deliveries of cGMP paclitaxel to one of the largest European generic company, pursuant to the terms of the supply agreement executed in October, 2005. Bioxel's paclitaxel API will be used by its client in generic drug product marketed primarily in Europe. This first order is valued at CAD $340,000 and is expected to result in recurring revenues starting in Q-4 2006.

"This is a very important milestone for Bioxel as it shows a leading generic company with world-wide marketing reach committed to the use of Bioxel's API for its finished product" said Pascal Delmas, President and CEO of Bioxel Pharma. "The EU expansion program we initiated in 2005 has allowed us to diversify our customer base, resulting in new revenue streams - and future revenue growth. We are also rapidly advancing on the development of our semi-synthetic taxanes as we intend to provide by 2007 a broader product line to our partners, enriched particularly by a new key product: docetaxel."

Bioxel manufactures and sells cGMP paclitaxel to specialty pharmaceutical companies and generic formulation manufacturers. The Corporation's dedicated cGMP paclitaxel facility has a 120 kilogram annual manufacturing capacity. It is located at an FDA inspected pharmaceutical manufacturing site. Bioxel's paclitaxel is registered with US, EU and Canadian regulatory authorities, allowing its use worldwide.

ABOUT BIOXEL PHARMA

Bioxel Pharma Inc. is an emerging leader in biopharmaceuticals, focused on developing, manufacturing and marketing taxane pharmaceutical ingredients. Taxanes are used in drug products for the treatment of cancer and other diseases, including psoriasis, rheumatoid arthritis, Alzheimer's disease and cardiovascular disease. The Corporation sells cGMP paclitaxel and develops a portfolio of other generic taxane APIs and taxane-based proprietary products for improved cancer therapy.

This announcement includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect future results. These include risks and uncertainties that could affect Bioxel's products under development such as regulatory factors, technological developments and competitive factors. Achievement of the objectives set forth in this release is subject to these risks and uncertainties. The Corporation's results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the realization of financial projections.

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.

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