AXM Pharma Enters Into Representation Agreement with Leading Pharmaceutical Company.

AXM Sells Approximately $375,000 Worth of Products in First Day

CITY OF INDUSTRY, Calif. -- AXM Pharma (OTC: AXMP) announced today that it has entered into an exclusive representation agreement with Xian Jiahui Pharma Co., Ltd., a leading Chinese pharmaceutical manufacturer. Under this agreement, AXM Pharma will represent Xian Jiahui in the sale of new medicines, including its patent-pending Shen Kang injection/suppository. AXM sold approximately $375,000 worth of product in the first day of sales.

Shen Kang injection/suppository is the only Chinese traditional medicine compound dosage that can prevent and cure chronic allograft nephropathy (CAN). Transplanted nephridium of CAN has a low survivability. Most patients will get CAN after one or two years, which causes decreased and irreversible nephridium function, lead to a second dialysis or re-transplant and require expensive medical costs. The use of Shen Kang can significantly reduce the level of hematuria nitrogen, lower the levels of FN, LN and COLLV, and the over-expression of transforming growth factor b (TGF-b) and satisfy the patients' need for kidney protection.

"We are excited to exclusively represent Xian Jiahui," said Wang Weishi, Chairman and CEO of AXM Pharma. "The opportunity for their lead product Shen Kang is substantial, as demonstrated by strong sales of the product during our first day of sales."

According to estimates in China, there are as many as 6 million people who are diagnosed with chronic renal failure (CRF) annually and 30-50 million CRF patients. Nearly half of the 70 million diabetes patients have developed CRF. The cost of a therapeutic cycle for the treatment of Shen Kang injection is approximately 10,000 RMB.

About AXM Pharm

AXM Pharma, Inc. is a global pharmaceutical company engaged in the production, marketing and distribution of pharmaceutical products in China. The Company produces, markets and distributes medicines in various dosages and forms in most areas of medicinal treatment, as well as herbal remedies, vitamins and adjunctive therapies. Through its wholly owned subsidiary, AXM Pharma Shenyang, Inc., the Company has utilized its production and distribution capabilities to establish a pharmaceutical operation focused on supplying the growing demand for drugs and on the opportunities for proprietary branded products in specific niche categories.

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, including the statements regarding the Company's opportunities for future growth. 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, obtaining regulatory approvals to market the Company's products, the uncertainties associated with distributing products in a developing country such as China, the availability of cash to meet near term requirements 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.