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AlphaRx Announces Debt Conversion
Date:9/28/2007

MARKHAM, ON, Sept. 28 /PRNewswire-FirstCall/ - AlphaRx Inc. (OTC BB: ALRX), a specialty pharmaceutical company dedicated to developing the next generation of therapeutic products for inflammatory and infectious disease, today announced the retirement of approximately $1.22 million of liabilities.

Pursuant to a unanimous resolution of the Board of Directors, certain unsecured loans made to the Company by its directors, officers and third party investors, including earned and unpaid salaries and fees owed to employees and directors have been converted into shares of common stock of the Company. A total of 24,382,813 shares were issued for this conversion.

The Company believes that the retirement of this debt is beneficial to it's financial condition and continued growth.

About AlphaRx Inc.

AlphaRx is a specialty pharmaceutical company utilizing proprietary site-specific nanoparticulate drug delivery systems 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 also discovers and develops novel, small-molecule drugs for the treatment of inflammatory diseases and neurodegenerative diseases.

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 companies.


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