Auxer Announces Queen Air Closing, Application for Name and Symbol Change, Reverse Stock Split and Offer of Stock Conversion.

Business Editors

TRAVERSE CITY, Mich.--(BUSINESS WIRE)--May 14, 2003

THE AUXER GROUP, INC. (OTCBB:AXGI) announced today that it's wholly owned subsidiary, Viva Airlines, Inc. has completed the formal closing with Queen Air, Aeronaves Queen S. A.

Auxer also announced that it has directed legal counsel to seek a name change to Viva International, Inc. and upon approval of the name change to make application for a trading symbol change. The Company further announced a reverse stock split of 800 to 1 to be effective as of May 29, 2003 and an offer that will allow common shareholders to convert their holdings into preferred stock.

Robert Scott, President and CEO of Auxer, in an interview from Santo Domingo, Dominican Republic, stated, "The Queen Air closing was completed without complication and we are now beginning our final preparations to commence operations. Accordingly, we expect to soon announce a flight schedule and our ability to accept ticket sales".

Mr. Scott further commented, "Changing the name of Auxer to Viva International, Inc. has previously been discussed and has been planned for some time. Since the stock exchange agreement with Viva Airlines, Inc. in January of 2003, the direction of Auxer has clearly changed towards the development of airline operations, holdings and supplemental aviation services. It is time to make this change".

Mr. Scott went on to say, "A reverse stock split has become necessary to assist the Company in procuring the financing it needs and to do so at reasonable cost and expense. We hope that by reducing the number of outstanding shares and with the subsequent increase in the trading price per share that long-term investment will be encouraged. We expect that this strategy will cause stability in our stock as well as enhance its appeal to new investors".

Mr. Scott also stated, "Pursuant to the reverse stock split, an informational statement will be mailed to shareholders of record. Included with the information will be a Company offer that will allow shareholders the opportunity to convert their common shares (prior to the reverse split) at a premium to market into a new class of preferred stock. The new preferred stock will pay semi-annual dividends. In addition, the new preferred stock will allow the option of converting back to common shares (at any time) after 1 year of ownership at a discount to market".

Forward-looking statements in this news release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Acot 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.