AlphaRx Completes Development of Vansolin(tm), a Vancomycin Incorporating the Company's Proprietary Nanoparticle Delivery Platform, Indicated in the Treatment of Life Threatening Infectious Diseases

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AlphaRx Inc. today announced that it has completed the development of a novel antibiotic formulation using its patent pending solid lipid nanoparticle delivery platform.

AlphaRx Inc. (OTC BB:ALRX.OB - News) today announced that it has completed the development of a novel antibiotic formulation using its patent pending solid lipid nanoparticle delivery platform. The new product is announced under the trade name Vansolin™. The active ingredient is Vancomycin, a very powerful antibiotic used mainly in hospitals to treat life threatening infectious disease such as hospital acquired pneumonia, ventilator associated pneumonia and severe sepsis. Vansolin™ is the Company’s fourth product employing proprietary nanotechnology, a line of products which are intended to increase the efficacy of the existing base drug compounds while reducing their side effects.

Vancomycin was initially introduced over forty years ago to treat evolving Penicillin-resistant strains of Staphylococci. Vancomycin is now often employed as the drug of last-resort, the final treatment option that a physician has to eliminate a bacterial infection resistant to other antibiotic drugs.

The Company believes that encapsulating Vancomycin into a nanoparticle formulation may increase its efficacy. According to published research papers, in vitro uptake of Vancomycin nanoparticles by white blood cells is 20 times greater than free drug. The Company anticipates that in vivo, after IV infusion, white blood cells will readily absorb Vansolin™ nanoparticles and transport them to the site of inflammation and infection, thereby increasing the local concentration of Vancomycin and ultimately increasing its bactericidal effect.

The Company has previously announced and outlined the clinical development strategy of Zysolin™, a novel antibiotic nanoparticle formulation indicated for the treatment of hospital acquired pneumonia. Vansolin™ will be developed using the same clinical development strategy. The Company expects to advance Vansolin™ into the clinical phase during the fourth quarter of 2006.

About AlphaRx Inc. (http://www.AlphaRx.com)

AlphaRx is an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs that are insoluble or poorly soluble in water or have yet to be administrable to the human body with an acceptable delivery method. The Company’s product candidates address various pharmaceutical markets, including arthritis, tuberculosis, ocular infection, ocular inflammation and hospital acquired pneumonia.

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.

This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com and view the "AlphaRx" Investor Discussion and Contact Forum. In addition, investors are asked to e-mail all questions and correspondence.

Contact:

For more information, please contact:

Agora Investor Relations Corp.

Web: http://www.agoracom.com
Phone: 416-496-0496

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