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AlphaRx's Indaflex(TM) Continues its Clinical Development
Date:5/12/2008

MARKHAM, ON, May 12 /PRNewswire-FirstCall/ - AlphaRx (OTC BB:ALRX - News), an emerging biopharmaceutical company utilizing proprietary drug delivery technology to develop novel formulations of drugs, is pleased to announce that the clinical development of Indaflex(TM), its topical NSAID (Non-Steroidal Anti-Inflammatory Drug) formulation, will continue as part of Cypress Bioscience, Inc. ("Cypress') (NASDAQ: CYPB).

In March 2008, Cypress acquired Proprius Pharmaceuticals, Inc. ("Proprius"). The transaction included an upfront payment of approximately $37.5 million in cash, as well as an additional $37.5 million in potential milestone-related payments associated with the development of Proprius' therapeutic candidates including Indaflex(TM). AlphaRx was notified that the Indaflex licensing agreement has been assigned to Cypress from Proprius as part of that transaction.

Michael Lee, President of AlphaRx stated, "AlphaRx is excited to see the development of Indaflex continue as part of Cypress' on-going clinical development efforts. We believe Indaflex is in good hands and is consistent with Cypress's therapeutic focus and expertise."

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's product candidates address various pharmaceutical markets, including inflammation, tuberculosis and pneumonia.

Forward Looking Statements:

This release contains forward-looking statements within the meaning and pursuant to the Safe Harbor provisions of
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SOURCE AlphaRx Inc.
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