Auxer Announces Management Team for Auxer Telecom, Inc.

Business Editors

WEST PATERSON, N.J.--(BUSINESS WIRE)--Aug. 10, 2000

The Auxer Group, Inc. (OTCBB:AXGI) announced today that it has added two new members to the Auxer Telecom team, Samir Khalaf and Richard Les Lyniate.

Samir Khalaf will be a special consultant to the Board of Directors in telecommunications financing, acquisitions and international business. Richard Lyniate will be responsible for the transition and overseeing the switch operations group in Los Angeles, California. Mr. Lyniate has assembled a management team with approximately 100 years of experience in telecommunications sales & marketing, engineering, switch operations, and customer services.

Mr. Samir Khalaf was a consultant to Cyberlight, Inc., a former telecommunication operations company where he was the liaison to GTE. Mr. Khalaf was the liaison to the Arab Bank of Jordan for $150 Million in funding for the Gaza Palestine Power Plant this year. Prior to that, Mr. Khalaf was the liaison for the Kuwait Fund for Social and Economic Development where he orchestrated $50 Million in funding to rebuild the Kuwait highways and infrastructure in 1996 and more recently highway projects in Belize. Mr. Khalaf is the President of Khalaf International, S.A., an international consulting firm.

Mr. Richard Lyniate is currently a partner of Sponge Technologies, Inc. He was the founder and President of Cyberlight, Inc. since 1997. Prior to that, he was the President of Cyberlink, Inc. which was sold to RSL, Inc. in 1996. Prior to that, he was the VP of Strategic Marketing and Systems of Com Systems, Inc., which was acquired by WorldCom in 1991, and he was the VP of Marketing at Vanguard. Additionally, Mr. Lyniate was a Research & Development Engineer for over 17 years where he was a systems consultant for Nortel systems (Northern Electric), an engineer for communications power systems for New York Tel (Ameritech) and an engineer for MCI (Bechetel).

Auxer expects to announce the closing on the assets in connection with the Telecommunication Switch operation and Sponge Technologies, Inc. next week. Auxer has the required funding to complete the acquisition of these assets and to fund its initial expansion program. "Today, we are please to introduce the newest members of our Telecom Team. Mr. Khalaf will provide expertise and liaison in the areas of telecommunications financing, acquisitions, and international relations. Mr. Lyniate will be Auxer's "pointman" for the transitioning of the switch operations under Auxer Telecom, Inc., he will oversee Auxer's new management team in Los Angeles, as well as provide strategic development expertise to the Board of Directors. I would like to be the first to welcome them aboard," said Eugene Chiaramonte, Chairman of Auxer.

ABOUT THE COMPANY

The Company is a holding company which is forming a Telecommunications Group and currently owns an Automotive Group with three (3) active subsidiaries: The Harvey Westbury Corporation Inc., Hardyston Distributors, Inc. and CT Industries, Inc. Harvey Westbury assembles and packages automotive accessories under the name, Easy Test(R), sells engine treatment under the name, Formula 2000 Ultimate(TM) and sells waxes and polishes under the name, Garry's Royal Satin(TM) to the automotive, marine, and aviation industries. Hardyston Distributors, Inc. is a specialty distributor of automotive parts and accessories to local mechanics, service stations and dealers. CT Industries, Inc. has been designated to house any future internet-related business and currently handles the internet-related sales from the company's websites as well as other retail programs.

Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, competition, new products and technological changes, intellectual property rights and other risks.

For more information please visit our websites at www.auxer.com and www.axgiinstestor.com