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AXM Pharma Signs $483,000 Distribution Agreement for Anti-Fatigue Products

AXM Pharma, Inc. announced today that it has signed a 2005 Distribution Agreement for $483,676 with Beijing XinRenYou Medical Healthcare Co. Ltd for the Company's line of Anti-fatigue capsules products, Tong Yang, for distribution in Beijing.

Tong Yang is registered as a Functional Food, a category that includes homeopathic treatments in addition to other compounds. The functional food market in China is growing rapidly as the standard of living in China increases and there is more disposable income for health related products. According to Packaged Facts, functional food sales are projected to exceed $30 billion in the U.S. by the end of the decade. China is expected to follow a similar trend.

The increasing sophistication of Chinese consumers, especially those in urban areas, coupled with their rising affluence, has resulted in a value for money approach where health products are concerned.

According to DataMonitor, consumers are taking a more holistic view of health and looking to diet, exercise and lifestyle to complement medical treatment. This attitude is a golden opportunity for functional food and drinks players. It encourages consumers to trade-up to healthier food and drink in order to achieve their aims. These consumers are now more willing to pay extra for health products if they feel that it adds value to their lives. Even in rural areas, traditionally very conservative, consumer lifestyles are increasingly influenced by urban consumption patterns.

Yang, which means vigor and energy in Chinese, is a popular branding element or reference in Asian markets. Tong means "get through" or "unblocked." Yang means one side of "Yin and yang," the two opposing principles in nature; also, the "Yin" means feminine and negative, and the "yang" means masculine and positive.

Nowadays, many administers in China feel fatigue and depressed for high-efficiency, high-strength and high-pressure work. This product is effective for prevention from depression.

AXM Pharma Inc., http://www.axmpharma.com, 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 of proprietary and generic pharmaceutical products, which include injectables, capsules, tablets, liquids and medicated skin products for export and domestic Chinese sales. For additional information on AXM Pharma Inc, please visit http://www.iccinfo.com or call Investor Communications Company, LLC at 866 562 0134.

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.

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