NEW YORK, NY and SALT LAKE CITY, UT, Jun 03 (MARKET
WIRE) —
Aoxing Pharmaceutical Company, Inc. (NYSE Amex: AXN) (“Aoxing Pharma”)
and Phoenix PharmaLabs, Inc. (“PPL”) today jointly announced that the
companies have entered into a co-development, manufacturing and license
agreement related to a novel class of poly-receptor active opioid-like
drug candidates targeting pain and substance abuse and addiction
treatment.

Agreement Highlights

– Aoxing Pharma and PPL entered into a multi-party collaboration
agreement for the development and regulatory approval of a novel class
of therapeutics in both China and ex-China territories. The two
companies will continue to co-collaborate with the U.S. National
Institute of Drug Abuse (“NIDA”) and the Chinese National Institute on
Drug Dependence at Beijing University (“NIDD”).
– Aoxing Pharma received an exclusive license to develop a new class of
poly-receptor active opioid-like drug candidates being developed by
PPL for therapeutic indications in pain management and substance abuse
and addiction treatment in the Country of China, Macau and Hong Kong.
– PPL will receive tiered royalties based on Adjusted Gross Sales (AGS)
in the licensed territories, defined and agreed by both companies.
Aoxing Pharma receives tiered royalties based on Adjusted Gross Sales
(AGS) from the territories held by PPL, defined and agreed by both
companies.
– Aoxing Pharma will execute and fund the development, regulatory
applications, manufacturing and marketing of the licensed drug
candidates in China, while PPL will fund all development in all other
territories.

“We are pleased to announce this global strategic alliance, as one
of our primary goals is to introduce a novel class of therapeutics to
patients around the world with pain or drug addiction problems,” said Dr.
John A. Lawson, Chairman and Chief Executive Officer of Phoenix
PharmaLabs, Inc. “Our drug development program has been funded and
supported by the U.S. National Institute of Drug Abuse (‘NIDA’) for many
years. . We are planning on filing an IND in the U.S. for the first
product candidate early next year. Aoxing Pharma is an emerging leader in
the narcotics and neurological pharmaceutical business in China, which
ideally complements our existing offerings. We view Aoxing Pharma as an
ideal strategic partner given their solid presence and complementary
pipeline.”

“This partnership provides an exciting opportunity to bring in additional
unique product candidates to our growing pipeline for an important market
here in China, while also allowing us to capitalize on potential sales
outside of China,” said Zhenjiang Yue, Chairman and Chief Executive
Officer of Aoxing Pharma. “We believe that this class of new molecules
represents a strong growth opportunity to expand upon our existing
pipeline products in the areas of drug addiction treatment and pain
management, including the sublingual tablet of Buprenorphine/Naloxone,
which is currently under our clinical development and expected to be
launched in China over the next 24 months. With 1.3 million registered
drug addicts and limited pharmacological options available in China,
these new product opportunities have the potential to help serve this
unfortunately rapid growing market.”

About Poly-Receptor Active Opioid-Like Drugs:

Phoenix PharmaLabs’ poly-receptor opioid-like drugs may represent a new
“class” of opioid drugs, with unique pain receptor characteristics never
before seen. PPL believes there are no other opioid drugs with similar
receptor binding profiles. PPL drugs have a unique reduced Mu-receptor
and moderate Kappa receptor activity allowing them to be moderately
active at all three pain receptors. In pre-clinical testing, this
balanced partial activity appears to allow full pain relief potency while
eliminating or reducing such side effects as respiratory depression and
addiction. In short, PPL drugs appear to mimic the natural endorphins in
the healthy brain. For more information, please visit:

http://www.phoenixpharmalabs.com/

About Phoenix PharmaLabs Inc.

Phoenix PharmaLabs, Inc. is a privately held, clinical-stage Utah drug
discovery company focusing on the development and commercialization of
new non-addictive treatments for pain, and new therapies for the
treatment of opiate addiction. The company was founded in 2002 with the
mission to bring its new class of opioid pain therapies and addiction
treatment therapies to the Clinic. For more information, please visit:

http://www.phoenixpharmalabs.com/

About Aoxing Pharmaceutical Company, Inc.

Aoxing Pharmaceutical Company, Inc is a US incorporated specialty
pharmaceutical company with its main operations in China, specializing in
research, development, manufacturing and distribution of a variety of
narcotics and pain-management products. Headquartered in Shijiazhuang
City, outside Beijing, Aoxing has the largest and most advanced
manufacturing facility for highly regulated narcotic medicines. Its
facility is one of the few GMP facilities licensed for the manufacture of
narcotic medicines by the China State Food and Drug Administration
(SFDA). It has joint venture collaboration with Johnson Matthey Plc to
produce and market narcotics and neurological drugs in China. It also has
strategic alliance partnership with QRxPharma and American Oriental
Bioengineering, Inc. For more information, please visit:
www.aoxingpharma.com.

Safe Harbor Statement from Aoxing Pharmaceutical Company, Inc

Statements made in this press release are forward-looking and are made
pursuant to the safe harbor provisions of the Securities Litigation
Reform Act of 1995. Such statements involve risks and uncertainties that
may cause actual results to differ materially from those set forth in
these statements. The economic, competitive, governmental, technological
and other risk factors identified in the Company’s filings with the
Securities and Exchange Commission, including the Form 10-K for the year
ended June 30, 2009, may cause actual results or events to differ
materially from those described in the forward looking statements in this
press release. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether because of new
information, future events, or otherwise.

Investor Relations Contact:
Timmy Chou
Vice President, CFO
Tel +1 801 420 0285
Email: tim@phoenixpharmalabs.com

Investor Relations Contact:
Brian Korb
Vice President
The Troup Group LLC
Tel: +1 646 378 2923
Email: bkorb@troutgroup.com

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