AlphaRx and Gaia BioPharma Provide GAI-122 Development Update

GAI-122, an investigational injectable nano-emulsion formulated with
AlphaRx's proprietary drug delivery technology, provides significant
neuroprotection in animal behavioral models. Gaia BioPharma plans to
initiate a clinical development program to further study GAI-122 for an
acute and as yet, unmet neurological indication.

MARKHAM, ON, June 16 /PRNewswire-FirstCall/ - AlphaRx Inc. (OTCBB: ALRX) and
Gaia BioPharma Limited, a privately held, early stage biopharmaceutical
company focused on hospital-based injectable therapeutics, are pleased to
provide a progress report on GAI-122.
GAI-122 offers significant and direct neuroprotection in both in vitro and in
vivo ischemic conditions. Experimental evidence suggests that the
neuroprotective action of GAI-122 is related to its' active inhibition of
apoptosis or cell death. GAI-122 shows potential as a major treatment
innovation in the management of ischemic neurological disorders such as stroke
and traumatic brain injury.
The proposed initial indication for GAI-122 is an acute neurological disorder
affecting millions of patients undergoing cardiac and hip replacement surgery.
It is estimated that the market potential for this unmet indication exceeds
US$2 billion a year.
GAI-122 is in the final stage of formulation optimization, which is expected
to be completed by the end of summer 2009, proceeding to clinical trial
materials manufacturing thereafter. GAI-122 is protected by 4 US patent
applications.
In October 2008, AlphaRx licensed GAI-122 to Gaia BioPharma. Under the terms
of the amended agreement, AlphaRx is eligible to receive milestone payments of
up to $50 million for the successful development and commercialization of
GAI-122, as well as royalties on worldwide sales. In addition, Gaia BioPharma
has assumed all development costs.

About AlphaRx Inc.

AlphaRx is a specialty pharmaceutical company dedicated to developing proven
therapies by reformulating FDA approved and marketed drugs which through the
application of its proprietary site-specific nano drug delivery technology,
offers improved medical benefits and a potential for significant commercial
product development.

About Gaia BioPharma

Gaia BioPharma Limited, a privately held, early stage biopharmaceutical
company focused on hospital-based injectable therapeutics. Gaia BioPharma
seeks to address key unmet therapeutic needs by taking established compounds
and changing their administration routes to create patent-protected,
value-added products.

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.

SOURCE AlphaRx Inc.

Agora Investor Relations Corp., Web: http://www.agoracom.com (Select "AlphaRx"
Forum), E-mail: ALRX@Agoracom.com