Access Pharmaceuticals, Inc. Agrees to License Amlexanox for Four Additional European Markets.

DALLAS--(BW HealthWire)--Oct. 15, 1998--Access Pharmaceuticals, Inc. (OTC BB:AXCS) today announced that it has signed a Letter of Intent to license amlexanox 5% paste to Laboratorios Dr. Esteve, S.A. for Italy, Spain, Portugal and Greece.

Under the terms of the Agreement Esteve will make an up-front license payment, additional milestone payments and will pay a royalty on sales.

In addition to the countries covered by the Esteve Letter of Intent, Access has entered into license agreements and letters of intent for Canada, United Kingdom, Ireland, Sweden, Finland, Norway, Denmark, Iceland and the Baltic States. It is anticipated that agreements will be in place for all major European markets prior to receipt of regulatory approval, which is anticipated in the third quarter of 1999.

Commenting on the agreement, Kerry P. Gray, President and CEO of Access Pharmaceuticals, Inc., stated "Laboratorios Dr. Esteve is the third largest pharmaceutical company in Spain, we are delighted to have such a dominant company as our marketing partner. This moves us closer to achieving our objective of licensing the rights to amlexanox throughout Europe to enable maximum market penetration on receipt of regulatory approval. The outlicensing activities are further confirmation of the potential of this drug in the canker sore indication."

Currently amlexanox 5% paste is approved by the FDA for the treatment of canker sores. In addition to maximizing global revenue from this indication, Access in conjunction with strategic partners is developing alternate formulations of amlexanox for clinical evaluation in additional oral and topical diseases. It is anticipated that clinical studies will commence in two additional indications prior to the end of 1998.

Mr. Gray added, "Pursuing opportunities with the potential of generating significant near-term revenues is a major priority of the company. Expanding the indications of an approved drug represents a lower risk approach to developing new product opportunities in significant markets."

Access Pharmaceuticals, Inc. is a site-directed drug targeting company using bioresponsive carriers to target and control the release of therapeutic agents into sites of disease activity and clear the non-targeted drug fraction. In addition to amlexanox, Access is developing a unique polymer platinate for use in the treatment of cancer. Access also is developing in conjunction with its partner Strakan Ltd. a topical zinc delivery system called ResiDermTM that provides rapid delivery and reservoir of a drug in the skin.

This press release contains certain statements that are forward-looking and that involve risks and uncertainties, including but not limited to the uncertainties associated with research and development activities, future capital requirements, anticipated option and licensing revenues, dependence on others, collaborations and other risks detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 1997.