Amarillo Biosciences Issues Update on Australian Phase 2 Clinical Trial Testing Oral Interferon as Prevention Against Influenza

AMARILLO, TX--(Marketwire - December 17, 2009) -

Amarillo Biosciences, Inc. (ABI) (OTCBB: AMAR) today announced that its ongoing study of oral interferon as prevention/treatment of influenza and other respiratory illnesses in Perth, Australia is nearing completion. A total of 200 healthy volunteers were enrolled in this Phase 2 clinical trial to take oral interferon or placebo lozenges once daily for 16 weeks, followed by 4 weeks of post-treatment observation. The treatment phase of the study was successfully concluded in November with over 80% of the volunteers completing 16 weeks of study medication. All subjects are scheduled to complete the 4 weeks of post-treatment observation by the end of the year.

The aim of this study is to determine whether the volunteers who take oral interferon experience fewer respiratory illnesses and/or less severe symptoms during the winter cold/flu season in Australia. To reach this aim, the study was conducted in a placebo-controlled, double-blind manner. Half of the volunteers received lozenges containing the Company’s interferon-alpha product, while the other half received a sugar pill (placebo). During treatment, neither the investigators nor the volunteers knew which subjects received interferon and which received placebo.

Only after all subjects have completed the post-treatment observation phase and all study data has been entered into a locked electronic database will the code be broken to reveal the treatment assigned to each subject. Finalization of the data and breaking of the treatment code will occur in January, followed by detailed statistical analysis. Results of the study will be announced as soon as a full analysis of all study data has been completed.

The study is being conducted by Associate Professor Manfred Beilharz and his staff in the Microbiology and Immunology Discipline (BBCS) at the University of Western Australia with primary funding from the Department of Health, Government of Western Australia.

About Amarillo Biosciences

Amarillo Biosciences, Inc. is a U.S. biotechnology firm operating in global partnership with the Hayashibara Group, which also holds 7% 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 influenza, hepatitis C, chronic cough, and opportunistic infections in patients who are HIV positive. In its 25-year history, the Company has invested nearly $40 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” and “Item 7A. Qualitative and Quantitative Disclosures About Market Risk” of the Company’s Form 10-K for the fiscal year ended December 31, 2008.