Stellar Pharmaceuticals Inc.
TSX VENTURE : SLX
OTC Bulletin Board : SLXCF

Stellar Pharmaceuticals Inc.

August 12, 2005 08:00 ET

Stellar Pharmaceuticals Inc. Retains Basic Investors, Inc.

LONDON, ONTARIO--(CCNMatthews - Aug. 12, 2005) - Stellar Pharmaceuticals Inc. ("Stellar") (TSX VENTURE:SLX)(OTCBB:SLXCF), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, announced today that it has retained Basic Investors, Inc. to provide business consulting services to the company.

Basic Investors, Inc. ("Basic") is an NASD broker-dealer firm based in Melville, New York, which provides services principally to micro through mid-cap public companies listed on the NASDAQ®, American and New York Stock Exchanges. The relationship between Basic and Stellar is an arm's length relationship and other than its ownership of 150,000 Common Shares of Stellar, Basic has no interests, direct or indirect, in Stellar and its securities and has no right to acquire such an interest.

The agreement between Stellar and Basic provides for a term ending in January 2006, unless otherwise terminated in accordance with the terms of the agreement. Pursuant to the terms of the agreement Basic will be paid in arrears a monthly fee of US$4,000. The services to be provided by Basic will include, among other things, (i) assisting Stellar with presentations at investment conferences, (ii) introducing Stellar to new brokers, brokerage houses and retail investors; and (iii) assisting Stellar in identifying and evaluating prospective investors.

Commenting on the agreement, Thomas Laundrie, President of Basic Investors, Inc. stated, "We are very enthusiastic in renewing our relationship with Stellar. We anticipate helping Stellar continue to meet its growth objectives as were laid out to us three years ago when we brought the Company to the OTC BB."

About Stellar Pharmaceuticals Inc.

Stellar Pharmaceuticals Inc. has developed and is marketing direct in Canada and in countries around the world through out-license agreements three products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst® and the Uracyst® Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreements for Skelite™ a proprietary synthetic bone-grafting product and NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer which are expected to positively impact sales in 2005.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Stellar Pharmaceuticals Inc.
    Peter Riehl
    President & CEO
    (800) 639-0643 or (519) 434-1540
    or
    Stellar Pharmaceuticals Inc.
    Arnold Tenney
    Chairman
    Cell (416) 587-3200
    or
    INVESTOR RELATIONS COUNSEL:
    The Equity Group Inc.
    Devin Sullivan
    (212) 836-9608
    dsullivan@equityny.com
    or
    The Equity Group Inc.
    Adam Prior
    (212) 836-9606
    aprior@equityny.com
    or
    BASIC INVESTORS, INC.
    Thomas Laundrie
    President
    (631) 630-2770
    or
    BASIC INVESTORS, INC.
    Richard Belz
    CFO
    (631) 630-2770