Auriga Announces New Alliance with Degussa to Enhance Product Pipeline Targeting Chronic Gastro-Intestinal Diseases; Technology to Leverage Degussa's Novel EUDRACOL(TM) Technology to Improve Drug Dosing, Efficacy and Reduce Side Effects in GI Tract.

NORCROSS, Ga. -- Auriga Laboratories, Inc. (OTCBB:ARGA), a specialty pharmaceutical company dedicated to applying advances in drug delivery to improve and extend the value of medicines for improved patient outcomes and the marketer of the Extendryl(R) family of products, announces the execution of a strategic agreement with Degussa to develop a proprietary formulation targeting serious chronic gastrointestinal diseases utilizing Degussa's proprietary EUDRACOL(TM) technology.

Auriga is developing an oral, controlled-release corticosteroid formulation that targets inflammatory bowel disease lesions at different sites within the GI tract. Degussa, the world's largest specialty chemical company, will provide the proprietary drug delivery technology and formulation concentrating the therapeutic benefits of the selected corticosteroid specifically where it is needed in the GI tract, providing dosing and efficacy, and reducing side effects.

"We're very excited to announce this development alliance with Degussa, which provides Auriga with an opportunity to design improved drug delivery treatments for inflammatory diseases of the bowel by leveraging the unique features of the EUDRACOL(TM) technology platform," said Philip Pesin, Chief Executive Officer of Auriga. "Auriga has always held a fundamental belief that corticosteroids represent a major untapped therapeutic resource for the treatment of Crohn's disease. We are very pleased to see our belief has now been justified with the recent announcement by the American Academy of Gastroenterology, recommending a corticosteroid as first-line therapy for mild to moderate Crohn's. This recommendation is a significant first step in opening up what we see as a new and exciting era in the treatment of this debilitating disease."

Drug delivery to specific disease sites within the GI tract is essential for the creation of improved pharmacological treatments with greater efficacy and reduced side effects for the patient suffering from Inflammatory Bowel Diseases (IBD). By joining forces with Degussa now to develop this novel formulation with targeted delivery, and in combination with Auriga's existing development pipeline, Auriga establishes itself as a valued development partner in the specialty pharmaceutical marketplace.

Under the terms of the development agreement, Degussa is responsible for development of the prototype formulations. Auriga Laboratories is responsible for formulation scale-up, manufacture, clinical, regulatory submission/approval, and product launch and marketing.

EUDRACOL(TM) is a proprietary multi-layer colonic drug delivery system that is designed to provide drug protection in the upper gastrointestinal tract and controlled drug release in the ileum and colon.

About Degussa

Degussa is the global market leader in specialty chemicals. Its business is creating essentials-innovative products and system solutions that make indispensable contributions to the customers' success. Degussa has developed cutting-edge oral drug delivery technologies based on EUDRAGIT(R) polymers. A broad range of EUDRAGIT(R) products are widely used throughout the pharmaceutical industry as coatings for modified release dosage forms. For more information, visit www.degussa.com.

About Auriga

Auriga is a specialty pharmaceutical company with sales, marketing, and development capabilities. Auriga has an exclusive license the Extendryl(R) family of products and promotes the products through its dedicated sales force. The Extendryl(R) line is indicated for treatment and relief of cough, cold and allergy symptoms. These products offer different combinations of antihistamines, expectorants, decongestants, anticholinergics, and anti-tussive that are designed to provide symptomatic relief for several patient types in the acute respiratory disease area. Auriga plans to become a fully integrated pharmaceutical company by acquiring its own manufacturing and development capabilities. Moving forward, the Company will complement its internal development efforts via acquisition and/or in-license additional products and technologies to further grow revenues. For more information, please visit: www.aurigalabs.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/auriga/. To read or download Auriga's Investor Fact Sheet, please visit http://www.trilogy-capital.com/tcp/auriga/factsheet.html. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/auriga/quote.html.

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