AlphaRx Announces Letter of Intent To Acquire Pharmaceutical Manufacturing Company

AlphaRx Announces Letter of Intent To Acquire Pharmaceutical Manufacturing Company

RICHMOND HILL, Ontario, Mar 26, 2002 (BW HealthWire) -- AlphaRx Inc. (OTCBB:
ALRX) announced today that it has signed a letter of intent to acquire all the
stock of a privately held US pharmaceutical manufacturing company. The Company
manufactures under contract and private label business, with over 200 vitamin
and mineral supplements in its product line. Financials details of the proposed
acquisition are not disclosed at this time. Deloitte and Touche Corporate
Finance Canada Inc. will be advising the Company on the acquisition. The
acquisition is expected to close in April of 2002.

"This acquisition supports AlphaRx's strategy on focusing on revenue growth,
profit generation and operational improvements. It expedites the
commercialization of our drug delivery technologies in the US as well as opening
new business opportunities internationally. Opportunities for value creation are
significant and the acquisition will immediately enhance underlying earnings,"
said Mr. Michael Lee, President of AlphaRx.

"Our goal is to expand through strategic acquisitions. We believe this is the
fastest way to introduce our drug delivery products to the worldwide market
place. We are actively pursuing acquisition opportunities that will complement
or extend our existing product lines or that would be compatible with our
business philosophy and strategic goals. We believe that our leading medical and
pharmaceutical research background and innovative product lines provide us with
a strategic advantage in pursuing and consummating such opportunities,"
concluded Mr. Lee.

The acquisition is subject to certain closing conditions, including satisfactory
completion of due diligence and execution of the Definitive Agreement.

    About AlphaRx

AlphaRx is engaged in the development of novel formulations of drugs that are
insoluble or poorly soluble in water. AlphaRx's broad product pipeline consists
of carefully selected, currently marketed drugs which, through the application
of its proprietary BCD drug delivery technology, offer improved medical benefits
over existing products with a strong commercial potential.

    FORWARD LOOKING STATEMENTS:

This release contains forward-looking statements within the meaning and pursuant
to the Safe Harbor provisions of the Securities Litigation Reform Act of 1995
and involve risks and uncertainties that may individually or mutually impact the
matters herein described, including but not limited to product development and
acceptance, manufacturing, competition, regulatory and/or other factors, which
are outside the control of the Company.

CONTACT:         AlphaRx

                 Michael M. Lee, 905/762-0745 x 101

                 or

                 Econ Investor Relations

                 Connie Linder, Toll free: 888/368-8705

                 clinder@investorideas.com