Amarillo Biosciences to Supply Zydus Cadila, India's Fifth Largest Pharmaceutical Company, With Dietary Supplement Maxisal for Indian Market

AMARILLO, TX--(Marketwire - November 16, 2010) -

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Amarillo Biosciences, Inc.

MacReport Media Publishing

Amarillo Biosciences, Inc. (ABI) (OTCBB: AMAR) today announced that it has signed a supply agreement with Zydus Cadila, the fifth largest pharmaceutical company in India, with projected worldwide sales of $1 billion in fiscal year 2010 and $3 billion in 2015. Under this agreement, Zydus will market ABI's dietary supplement Maxisal in India and Nepal. Maxisal enhances salivary function, promotes oral comfort and helps relieve dry mouth.

ABI initially launched Maxisal in the United States after clinical studies in subjects with Sjögren's syndrome (characterized by dry eyes and dry mouth) found that the active ingredient in Maxisal significantly improved mouth comfort and decreased mouth and throat dryness. Maxisal is marketed in Germany by ABI's licensee Egofocus OHG based in Darmstadt.

"Based on the favorable reception Maxisal has met in the U.S., -- which we attribute to the product's clinical benefits and reasonable cost -- we fully expect that it will be successful in India. We are delighted that Zydus Cadila has agreed to market Maxisal and are hopeful that success in India and Nepal will lead them to expand Maxisal into some of the more than 50 other countries in which they currently market products," said Dr. Joseph Cummins, President and CEO, ABI.

About Amarillo Biosciences
Amarillo Biosciences, Inc. is a U.S. biotechnology firm operating in global partnership with the Hayashibara Group, which also holds 5.4% 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. 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 at http://www.amarbio.com/.

About Zydus Cadila
Zydus Cadila is an innovative global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare products. The group's operations range from API to formulations, animal health products and cosmeceuticals. Headquartered in the city of Ahmedabad in India, the group has global operations in four continents spread across USA, Europe, Japan, Brazil, South Africa and 25 other emerging markets. In its mission to create healthier communities globally, Zydus Cadila delivers wide ranging healthcare solutions and value to its customers. With over 11,000 employees worldwide, a world-class research and development centre dedicated to discovery research and eight state-of-the-art manufacturing plants, the group is dedicated to improving people's lives. Additional information is available on the web at http://www.zyduscadila.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, 2009.