AlphaRx Inc. (OTCBB: ALRX) announced today thatits licensee, Gaia BioPharma Limited, has signed an agreement with acontract manufacturing organization (CMO) to manufacture GAI-122 for use inthe planned Phase I and II clinical trials of that product candidate.GAI-122 is being developed as I.V. administered formulation of anintracellular neuro-protectant that employs AlphaRx's proprietarynano-emulsion formulation technology. More specifically, GAI-122 is beingdeveloped for the amelioration of stroke-induced injury and disability inChina and as a preventive therapy for postoperative delirium in the U.S.A.

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"We are very pleased with the progress of the GAI-122 development program;it is on track to enter human trials in 2010," said Michael Lee, Presidentand CEO of AlphaRx. "The NINDS (National Institute of NeurologicalDisorders and Stroke) has recently initiated clinical trials using the oralform of GAI-122, for the treatment of Multiple Sclerosis. It furthervalidated our clinical development strategy for GAI-122 as aneuro-protectant."

About GAI-122

GAI-122, an investigational, injectable nanoemulsion of aMitochondria-targeted neuro-protective agent formulated with AlphaRx'sproprietary drug delivery technology, has been shown to provide significantneuro-protection in multiple in vitro and in vivo animal studies,suggesting that this injectable nanoemulsion formulation has the potentialto treat patients with acute ischemic stroke or to prevent postoperativedelirium.

About AlphaRx Inc.

AlphaRx is a specialty pharmaceutical wholesale colthing company dedicated to developingproven therapies by reformulating FDA approved and marketed drugs whichthrough the application of its proprietary site-specific nano drug deliverytechnology, offers improved medical benefits and a potential forsignificant commercial product development.

About Gaia BioPharma

Gaia BioPharma Limited, a privately held, early stage biopharmaceuticalcompany focused on hospital-based injectable therapeutics. Gaia BioPharmaseeks to address key unmet therapeutic needs by taking establishedcompounds and changing their administration routes to createpatent-protected, value-added products.

FORWARD LOOKING STATEMENTS:

This release contains forward-looking statements within the meaning andpursuant to the Safe Harbor provisions of the Securities Litigation ReformAct of 1995 and involve risks and uncertainties that may individually ormutually impact the matters herein described, including but not limited toproduct development and acceptance, manufacturing, competition, regulatoryand/or other factors, which are outside the control of the Company.

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For more information, please contact: Michael Lee AlphaRx Inc. Web: Email: Email Contact

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