Generex Biotechnology Corporation (NASDAQ: GNBT), a leader in the area of buccal drug delivery, announced today that on January 10, 2006 the Court of Appeals of New York denied a motion by Sands Brothers and Co., Ltd. for leave to appeal the January 23, 2001 and October 29, 2002 decisions and orders of the Appellate Division (First Department). The Appellate Division's October 27, 2002 decision and order affirmed a lower court's order vacating a New York Stock Exchange arbitration panel's award granting Sands Brothers & Co., Ltd. a warrant to purchase 1,530,020 shares of the Company's stock and modified that order by remanding the issue of damages to a new panel of arbitrators expressly limiting damages to reliance damages, which would not include damages for lost profits.
