AXJ Axm Pharma

AXM Pharma, Inc. (AMEX: AXJ), a manufacturer of proprietary and generic pharmaceutical and nutraceutical products for the Chinese and other Asian markets, announced today that it has entered into an Equity Interest Transfer Agreement, under which it will to acquire 51% interest of Liaoning Ming Cheng Medical & Pharmaceutical Co., Ltd. ("Ming Cheng") in exchange for 3.7 million shares of AXM Pharma's common stock. Founded in 2000, Ming Cheng is a leading distributor of pharmaceutical and other medical products in China. Ming Cheng's 2005 revenue was $44 million and the company was profitable. It expects to increases 2006 sales by approximately 15%. The acquisition is expected to close on or before June 30, 2006. Upon completion of the transaction, AXM will consolidate the results of Ming Cheng for financial reporting purposes. "We are pleased that we were able to enter into an Equity Interest Transfer Agreement with a leading distributor of pharmaceutical products in China," said Wang Weishi, CEO of the Company. "With more than 13,000 customers, Ming Cheng will allow us to market our innovative pharmaceutical products to an expanded customer base." About AXM Pharma, Inc. AXM Pharma, Inc., through its wholly owned subsidiary, AXM Pharma Shenyang, Inc. ("AXM Shenyang"), is a manufacturer 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 located in the City of Shenyang, in the Province of Liaoning, China. AXM Shenyang has an operating history of approximately 10 years. For additional information on AXM Pharma Inc., please visit http://www.axmpharma.com 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, including the statements regarding the Company's opportunities for future growth. 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, obtaining regulatory approvals to market the Company's products, the uncertainties associated with distributing products in a developing country such as China, the availability of cash to meet near term requirements 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.