Access Pharmaceuticals Announces Exercise of Product Option with Strakan Limited.

DALLAS--(BW HealthWire)--Aug. 27, 1997--

Access to Share Milestone Payments and Receive a Royalty on all

Marketed Products

Strakan to be Responsible for all Development Costs

ACCESS PHARMACEUTICALS, INC. (OTC BULLETIN BOARD: AXCS) today announced that Strakan Limited has exercised its option to develop products under the Access zinc patent for enhancing drug penetration and retention in the skin. The Agreement provides for Access to share in milestone payments and receive a royalty on all marketed products. Strakan will be responsible for all development costs.

Under the terms of the original license and development Agreement, Strakan had an 18-month option period to evaluate the technology and various product opportunities. Strakan has successfully completed the formulation development of an antibiotic in a zinc base for the treatment of acne. Currently Strakan is evaluating using this technology in combination with potent steroids and vitamin D.

Commenting on the development progress, Harry Stratford, President of Strakan, stated, "We are excited about the possibilities for this technology in numerous therapeutic areas. The technology offers the possibility for enhanced effectiveness of topical drugs with reduced absorption of drug, which could be of great importance to products whose use is currently limited due to side effects. We will be aggressively developing this technology in numerous areas, both in the prescription and over the counter markets."

Kerry P. Gray, President and CEO of Access Pharmaceuticals, commented, "This is an endorsement of the potential of this technology. We are very pleased with the progress that has been made and share Strakan's excitement. This relationship offers great potential for significant near-term revenues for Access. As this is a platform technology, products can be developed to compete in numerous therapeutic and consumer markets."

Access Pharmaceuticals, Inc. is a polymer based, therapeutics company providing a new dimension in drug delivery in controlling site directed targeting, localized release and clearance of therapeutic drugs, imaging agents and radiopharmaceuticals.

Strakan Limited is an emerging pharmaceutical company focused in the transport of active drug compounds onto, into and through the skin using patented drug delivery systems.

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 reports filed under the Securities Exchange Act, including the Company's annual report on Form 10-K for the year ended December 31, 1996.

CONTACT: Lippert/Heilshorn & Associates, Inc.

Keith Lippert; [e-mail]

[phone]

or

Kerry P. Gray

President & CEO

[phone]