Stellar Pharmaceuticals and Al-Mohab Trading & Contracting Company Sign Licensing Agreement for NeoVisc'R' in Kuwait.

LONDON -- Stellar Pharmaceuticals Inc. ("Stellar") (TSX VENTURE:SLX)(OTCBB:SLXCF), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today reported signing a licensing agreement with Al-Mohab Trading & Contracting Co. ("Al-Mohab") for NeoVisc(R) in Kuwait. Al-Mohab is a Kuwait company involved in the marketing and distribution of medical and hospital supplies.

NeoVisc is a 2 mL pre-filled syringe of sterile 1.0% sodium hyaluronate solution (1.5 million Dalton) used for the temporary replacement of synovial fluid in osteoarthritic joints. NeoVisc is packaged, sold and marketed as a three-injection therapy that has been shown to provide symptomatic relief of the pain of osteoarthritis ("OA") for an average of 6-12 months. The product is administered weekly by injection, for a total of three injections, directly into the affected joint.

Peter Riehl, Stellar's President and Chief Executive Officer, "Representing companies from Europe and North America, Al-Mohab is well placed within the medical community and enjoys excellent relationships with doctors, hospitals and medical clinics. The company is currently active with orthopedic surgeons in the osteoarthritis ("OA") market and has a proven distribution network in place with the ability to successfully launch NeoVisc(R) later this year. We believe that there is a similar per capital incidence of OA in Kuwait as in other markets in which NeoVisc is currently available. This agreement reflects our strategy to license our proprietary products into the global market place and we look forward to building a long-term working relationship with Al-Mohab."

Pursuant to the terms of the agreement, Al-Mohab will be responsible for obtaining all required regulatory approvals. Pending the receipt of these approvals, sales from this agreement could commence in the third quarter of 2006. This agreement has an initial three-year term and may be renewed for an additional three-year term with the mutual agreement of both parties.

Company Issues Shares For Consulting Services

Stellar Pharmaceuticals Inc. also announced today that it has issued 2,500 common shares to an arm's length consultant at a deemed issue price of CDN$0.91 per share, being the closing price of such shares on the day the agreement in principle was reached with the consultant. These shares were issued to the consultant as payment for consulting services provided to the company during December 2005.

About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada, and in countries around the world through out-license agreements, three products based on its core polysaccharide technology: NeoVisc(R), for the treatment of osteoarthritis; and Uracyst(R) and the Uracyst(R) Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has an in-licensing agreement for NMP22(R) BladderChek(R), a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings.

The TSX Venture Exchange has not reviewed and does not accept resp onsibility for the adequacy or accuracy of this release.

Stellar Pharmaceuticals Inc. (TSX VENTURE:SLX) (OTC Bulletin Board:SLXCF)