AXM Pharma Signs Exclusive Multivitamin Supplement Supply Agreement Under Sunkist Brand

NEWPORT BEACH, CA -- (MARKET WIRE) -- 09/15/2004 -- AXM Pharma, Inc. (AMEX: AXJ) announced today that the Company has executed an exclusive supply agreement for food grade Multivitamins from Supplement Sciences® Inc. The products will be marketed under the Sunkist brand, in accordance with AXM Pharma's exclusive trademark license with Sunkist. The products will be distributed by China Zuellig Xin Xing. With this agreement, AXM Pharma now has 10 vitamin and nutritional supplements marketed in China under the Sunkist trademark.

Under the terms of the supply agreement, Supplement Sciences® Inc. will supply AXM Pharma with multivitamin products that AXM Pharma can begin selling immediately, while its factory construction is being completed. AXM Pharma's state-of-the-art manufacturing facility is being built to US cGMP (current Good Manufacturing Practice) standards and is currently on schedule to be operational in early fall. Upon completion and certification AXM Pharma believes that its facility will be among the first US cGMP Finish Dosage facilities in China.

The initial range of products will include Children's vitamin and vitamin supplements. The Children's vitamin and vitamin supplement market in China is currently valued at US$ 750 million, according Financial Insight Magazine. The market is expected to grow steadily due to health care cost containment trends promoting preventive medicine and self-treatment in China.

"We are pleased to sign this agreement with Supplement Sciences® Inc., as it allows AXM Pharma to expand its product line and increase revenues, while completing factory construction and manufacturing trials," said Peter Cunningham, President and CEO of AXM Pharma. "We continue executing our strategy of brand management and focus on technologies that address consumer preferences for taste, product form, ease of delivery and convenience," he added.

The Company expects China Zuellig will begin distributing the new product line in the 4th quarter. China Zuellig is a subsidiary of the Interpharma Group, which is the largest pharmaceutical distributor in Asia, with annual revenues exceeding US$ 3.0 billion, 125 multinational clients, more than 100,000 direct accounts and 4,000 employees.

As the distribution arm of Interpharma Asia Pacific, Zuellig has a reputation as the leading provider of cutting-edge logistics services covering inventory management, warehousing, distribution and customer order management for more than 60 years. Zuellig provides the largest direct account coverage in all healthcare channels in Asia Pacific, employing over 1,000 sales representatives to support the activities of its principals in the trade channel.

AXM Pharma Inc.,, through its wholly owned subsidiary, Werke Pharmaceuticals, Inc., is the 100% owner of AXM Pharma Shenyang, Inc. ("AXM Shenyang"), a Wholly Foreign Owned Enterprise ("WFOE") under the laws of the People's Republic of China. AXM Shenyang is located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang and its predecessor company Shenyang Tianwei Pharmaceutical Factory, Ltd. ("STPF"), has an operating history of approximately 10 years. AXM Shenyang historically has been a manufacturer and distributor of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. AXM Shenyang is currently awaiting re-licensing of its pharmaceutical products pursuant to new national licensing requirements for pharmaceutical products in China and certification of its new factory. Approval of the re-licensing and factory certification is expected in October 2004.

For additional information on AXM Pharma Inc, please visit or call Investor Communications Company, LLC at 708 447-6834.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this news release include certain predictions and projections that may be considered forward-looking statements under securities law. These statements involve a number of important risks and uncertainties that could cause actual results to differ materially including, but not limited to, the performance of joint venture partners, as well as other economic, competitive and technological factors involving the Company's operations, markets, services, products and prices. With respect to AXM, except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, AXM's extremely limited operating history, uncertainties related to the Company's access to additional capital, competition and dependence on key management.

AMX Pharma, Inc.

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