Stellar Pharmaceuticals Inc. Receives CE Mark For NeoVisc’R’

LONDON, ONTARIO--(MARKET WIRE)--Aug 30, 2006 -- Stellar Pharmaceuticals Inc. (“Stellar”) (OTC BB:SLXCF.OB - News)(TSX VENTURE:SLX.V - News), a Canadian pharmaceutical developer and marketer of high quality, cost-effective products for select health care markets, today announced that its NeoVisc® viscosupplementation therapy has received the CE Mark denoting conformity with European standards for safety and allowing for marketing in European Union countries. Stellar is in ongoing discussions with several interested parties to market and sell NeoVisc in the European Union.

Peter Riehl, Stellar’s President and Chief Executive Officer, stated, “This approval is a significant milestone in Stellar’s global licensing strategy, as it grants us access to the large, growing markets within each of the countries that comprise the European Union. Recent census publications indicate that Europe has 19 of the world’s 20 oldest countries in terms of population age. In addition, these populations are expected to continue to age to unprecedented levels over the next 25 years. Given these demographics, we expect the use of viscosupplements such as NeoVisc will increase rapidly in the European community. Moreover, the validation accorded to NeoVisc by this CE Mark should assist Stellar’s global licensees outside of the European Union in obtaining regulatory approvals for NeoVisc in their respective markets, thus accelerating the global introduction of this product.”

About NeoVisc®

NeoVisc offers patients a drug-free method to treat the pain of osteoarthritis (“OA”). Three injections of NeoVisc into the affected joint administered over a two-week period have been shown to provide symptomatic relief of OA pain for an average of 6-12 months. NeoVisc is manufactured using a synthetic hyaluronan, unlike competitors that use hyaluronan extracted from cock’s combs.

About Stellar Pharmaceuticals Inc.

Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements three products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst® and the Uracyst® Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has an in-licensing agreement for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company’s business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company’s filings.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact: Contacts: Stellar Pharmaceuticals Inc. Peter Riehl President & CEO (800) 639-0643 or (519) 434-1540 Stellar Pharmaceuticals Inc. Arnold Tenney Cell: (416) 587-3200 INVESTOR RELATIONS COUNSEL: The Equity Group Inc. Adam Prior (212) 836-9606 The Equity Group Inc. Devin Sullivan (212) 836-9608

Source: Stellar Pharmaceuticals Inc.