Amarillo Biosciences Enters Into License and Supply Agreement With Cyto Biotech for Low Dose Oral Interferon Use in Human and Animal Health Indications in Asia

AMARILLO, TX--(Marketwire - February 26, 2009) -

Amarillo Biosciences, Inc. (AMAR) (OTCBB: AMAR) today announced that it has entered into a 15-year License and Supply agreement with Cyto Biotech, Inc. a Taipei, Taiwan animal health company.

Under the terms of the agreement, Cyto Biotech, will, at its sole expense and cost, conduct all clinical trials and studies and seek to obtain regulatory approvals in China, Taiwan, Thailand, the Philippines, Cambodia, Vietnam and Malaysia (“the Territory”), subject to the existing license and supply agreements with CytoPharm, Inc. and Bumimedic SDN. BHD., required for the commercial launch of the Company’s low dose oral interferon in the Territory for any animal and human health indications.

Pursuant to the alliance between Amarillo and Cyto Biotech, Cyto Biotech has purchased common stock in Amarillo Biosciences; paid an initial license fee to AMAR; and will pay a net royalty on low dose oral interferon sales. In addition, the agreement calls for certain minimum royalty payments to be made.

“The Cyto Biotech agreement affords AMAR an additional arm with which to pursue multiple animal health opportunities in Asia,” said Dr. Joseph Cummins, President & CEO, Amarillo Biosciences. “Cyto Biotech will work diligently to obtain regulatory approval for our low dose oral interferon.”

About Cyto Biotech

Cyto Biotech is an emerging human and animal health company actively engaged, in first advancing the knowledge in veterinary science to commercialize novel veterinary products and reach out to farmers with advanced scientific solutions for their animal health issues. It was founded in December 2007 by CytoPharm, Rich Bay, Inc., and Yuan-Yi Chemical Co. Cyto Biotech acquired its core technologies from CytoPharm and Amarillo Biosciences.

About Amarillo Biosciences, Inc.

Amarillo Biosciences, Inc. is a U.S. biotechnology firm operating in global partnership with the Hayashibara Group, which also holds 7.8% of Amarillo Biosciences shares and has provided over $18 million in loans, grants and equity investments. The Company’s primary focus is extensive and ongoing R&D into the use of low-dose, orally administered interferon as a treatment for a variety of conditions, including Sjogren’s syndrome, Behcet’s disease, and opportunistic infections in patients who are HIV positive. In its 23-year history, the Company has invested nearly $39 million to establish oral interferon as a therapeutic agent. The majority of those funds were invested in clinical trials in an effort to achieve FDA approval for interferon. Additional information is available on the web site at http://www.amarbio.com/.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including uncertainties related to product development, uncertainties related to the need for regulatory and other government approvals, dependence on proprietary technology, uncertainty of market acceptance of oral interferon or the Company’s other product candidates and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. In particular, see “Item 1. Description of Business” of the Company’s Form 10-KSB for the year ended December 31, 2007.