AlphaRX Announces Commercialization of LipoBloc and LipoLette, two Unique Proprietary Dietary Supplements for the Management of High Blood Cholesterol & Weight Control.

Business Editors & Health/Medical Writers

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AlphaRx Inc. (OTCBB:ALRX) is pleased to announce that production has commenced of LipoBloc(TM) and LipoLette(TM) - two of its proprietary dietary formulations addressing the multi-billion dollar markets for the management of high blood cholesterol levels and the promotion of sustainable long-term bodily weight-control. The Company has begun manufacturing in preparation for their product launch, anticipated for September 2002.

Cardiovascular disease is the number one killer in the Western World, with an estimated $200 billion spent on the disease annually. AlphaRx's highly soluble LipoBloc(TM) has been proven effective in the management of high blood cholesterol levels, as there is a direct correlation between the solubility of phytosterols and their effectiveness in cholesterol reduction. AlphaRx's LipoBloc(TM) offers consumers a viable dietary supplement that works to reduce cholesterol levels.

AlphaRx's clinically proven delivery system makes LipoBloc(TM) significantly more soluble and bioavailable than other phytosterol products, enhancing their attachment to cholesterol absorption sites in the small intestine and further reducing serum total and LDL levels as a result. Phytosterols are naturally occurring plant extracts, which have a molecular structure virtually identical to that of cholesterol but are insoluble in water and oil, thus making them extremely low in bioavailability.

In one clinical trial, 300 mg phytosterols administered in lecithin micelles (such as those used in LipoBloc(TM)) reduced cholesterol absorption as much as 34.4% as compared to a 11.5% reduction in three times the quantity of phytosterols in powder form alone. Thus, there is clearly a direct correlation between the solubility of phytosterols and their effectiveness in cholesterol absorption.

It is estimated that consumers spend approximately $33 billion annually trying to lose weight or prevent weight gain. AlphaRx's LipoLette supports effective weight control "lipotrophically" by decreasing the accumulation of fat in the body. LipoLette's active ingredients include a natural plant extract that though to inhibit the action of "lipases," intestinal tract digestive enzymes that are responsible for the body's absorption of fat. This inhibition achieves weight control through reduced fat intake, eliminating the unabsorbed food through the stool. This mechanism is similar to the popular obesity drug "Xenical," a synthetic prescription "lipase" inhibitor. As LipoLette is also free of Ephedra (Ma Huang) and caffeine, LipoLette addresses the problem of weight control without such adverse side effects as insomnia and agitation.

About AlphaRx

AlphaRx is engaged in the development of novel formulations of drugs that are insoluble or poorly soluble in water. AlphaRx's broad product pipeline consists of carefully selected, currently marketed drugs, which, through the application of its proprietary drug delivery technology, offer improved medical benefits over existing products with a strong commercial potential.

FORWARD LOOKING STATEMENTS:

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

Note: The FDA has not evaluated these statements. This statement is not intended to diagnose, treat, cure of prevent disease.