Bioxel Signs Paclitaxel Supply Agreement with a Leading European Generic Manufacturer.

SAINTE-FOY, Quebec -- Bioxel Pharma Inc. (TSX VENTURE:BIP), a leading manufacturer and supplier of taxane APIs and developer of targeted oncology drugs, today announced that it has executed a 2-year renewable paclitaxel manufacturing and supply agreement with a leading European generic manufacturer. Paclitaxel deliveries to this new client are expected to generate sales of about $1.5 to $2.0 million starting in 2006.

"This agreement represents a key milestone for the Corporation," said Pascal Delmas, President and CEO of Bioxel Pharma. "We clearly stated our objective to expand Bioxel's market presence in Europe and broaden our client base with generic manufacturers. Bioxel has now penetrated this territory with an established partner offering promising sales growth potential. We anticipate securing additional commercial agreements in Europe in the near term."

Bioxel's new client is presently marketing its generic paclitaxel formulation in several EU countries and intends to obtain approvals throughout Europe in 2006, following the mutual recognition procedure.

"We are pleased to have earned this new supply agreement", commented Paul Metz, President of Bioxel International, the sales and marketing arm of Bioxel. "When clients visit our dedicated cGMP paclitaxel manufacturing facility and see what Bioxel has invested in technology, equipment and regulatory compliance, they are assured of our commitment to customer satisfaction. Integrated, competitive and reliable; we believe Bioxel has the best offering in taxane APIs."

To respect confidentiality, the generic manufacturer and the specific terms of the agreement have not been disclosed.

Bioxel manufactures and sells cGMP paclitaxel to oncology specialty pharmaceutical companies and generic formulation manufacturers. The Corporation's dedicated cGMP paclitaxel facility has a 120 kilogram annual manufacturing capacity. It is located at an FDA inspected pharmaceutical manufacturing site. Bioxel's paclitaxel is registered with US, EU and Canadian regulatory authorities, allowing its use worldwide.

ABOUT BIOXEL PHARMA

Bioxel Pharma Inc. is an emerging leader in biopharmaceuticals, focused on developing, manufacturing and marketing taxane pharmaceutical ingredients. Taxanes are used in drug products for the treatment of cancer and other diseases, including psoriasis, rheumatoid arthritis, Alzheimer's disease and cardiovascular disease. The Corporation sells cGMP paclitaxel and develops a portfolio of other generic taxane APIs and taxane-based proprietary products for improved cancer therapy.

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.

This announcement includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect future results. These include risks and uncertainties that could affect Bioxel's products under development such as regulatory factors, technological developments and competitive factors. Achievement of the objectives set forth in this release is subject to these risks and uncertainties. The Corporation's results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the realization of financial projections.

Bioxel Pharma Inc. (TSX VENTURE:BIP)