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Auriga Laboratories, Inc. (ARGA.OB) Announces Acquisition Of Aquoral(TM) Product Line; Exclusive Rights To Proprietary Product Expands Brand Portfolio And Targets Potential $1 Billion Xerostomia Marketplace



9/19/2006 11:24:17 AM

NORCROSS, Ga.--(BUSINESS WIRE)--Sept. 18, 2006--Auriga Laboratories, Inc. (OTCBB:ARGA), a specialty pharmaceutical company driving high-growth revenues through acquisition of valuable brand portfolios and innovative drug development programs, has acquired the exclusive license to market the FDA-cleared Aquoral(TM), a prescription-only product designed to treat the widespread condition xerostomia, representing a potential marketplace estimated at more than $1 billion.

Licensing of the Aquoral(TM) brand furthers Auriga's business plan to capitalize on high-growth opportunities in the pharmaceutical industry through aggressive sales, integrated marketing and application of proprietary in-house drug development capabilities. Aquoral(TM) is an innovative integrated spray device containing a proprietary formulation.

Xerostomia, characterized by dry mouth, affects millions of people worldwide. It can be caused by autoimmune diseases and as a problematic side-effect of more than 400 prescription medications, such as antidepressants. The current size of the prescription marketplace for xerostomia medications is at approximately $54 million, but the wider potential market Aquoral(TM) can target is estimated at more than 300 million prescriptions, or more than $1 billion.

Auriga acquired the Aquoral(TM) license from Laboratoires Carilene, a France-based therapeutics developer, and is contingent upon three payments worth $1.5 million with a supply agreement that includes a 5 percent royalty return.

"Acquiring the license for Aquoral is the latest achievement in our strategic business plan to build a substantial portfolio of revenue generating products," said Philip S. Pesin, Chief Executive Officer of Auriga. "We are committed to combine both organic growth and growth through acquisition to drive the investment value of Auriga. This transaction exemplifies the type of proactive measures we will continue as we execute our business plan."

Auriga has allocated two professional sales teams to spearhead sales of Aquoral(TM). The Company expects to launch the Aquoral product by the first quarter of 2007 with nearly 170 sales representatives promoting the product by the end of the year.

Aquoral(TM) is an FDA-cleared, patented prescription mouth spray device that treats xerostomia (dry mouth), which affects approximately 30 percent of people over 65, and 25 million people in the United States alone. Xerostomia is associated with difficulties in chewing, swallowing, tasting or speaking and can be caused by certain autoimmune diseases like Sjogren's Syndrome and Rheumatoid Arthritis.

About Auriga Laboratories(TM)

Auriga Laboratories(TM) is a specialty pharmaceutical company capitalizing on high-revenue markets and opportunities in the pharmaceutical industry through proactive sales, integrated marketing and advanced in-house drug development capabilities. The Company's high-growth business model combines acquisition of proven brand names, powerful product development strategies and rapidly-growing national sales teams and marketing operations. Auriga acquires valuable brand portfolios that are no longer a strategic focus for large pharmaceutical companies, then capitalizes on untapped marketplace opportunities through brand extension and directed sales/marketing programs. The Company's drug-development pipeline leverages novel material science and advanced drug delivery technologies to produce improved formulations of successful brands to further expand markets, sales and clinical indications for proven, successful products. Auriga's exclusive product portfolio currently includes the Extendryl(R) and Levall(R) families of prescription products, indicated for relief of symptoms associated with a range of acute respiratory diseases. Auriga plans to become a fully integrated pharmaceutical company by acquiring its own manufacturing and development capabilities. Moving forward, the Company will seek to acquire and/or in-license additional products and technologies to further grow revenues. For more information, please visit: www.aurigalabs.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/auriga/. For an informational video overview, visit http://www.trilogy-capital.com/tcp/auriga/video.html. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/auriga/quote.html.

Forward-Looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in our documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Statements regarding the regulatory status and/or regulatory compliance of our products, our ability to secure additional financing, our ability to sustain market acceptance for our products, our dependence on collaborators, our ability to find and execute strategic transactions, or potential exposure to litigation, our exposure to product liability claims, and our prices, future revenues and income and cash flows and other statements that are not historical facts contain predictions, estimates and other forward-looking statements. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved and these statements will prove to be accurate. Important factors could cause actual results to differ materially from those included in the forward-looking statements.

Contacts Auriga Laboratories, Inc. Philip Pesin, 877-287-4428 investors@aurigalabs.com or Financial Communications Trilogy Capital Partners, Inc. Paul Karon, 800-592-6067 paul@trilogy-capital.com

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