AXM Pharma Inc. has entered into a distribution agreement with Sinopharm Holding Guangzhou Co., Ltd. for an expected purchase amount through December 2005 of RMB 54,000,000 (US$6,560,000) for the company's line of Elegance products, formerly known as Whisper. Additional products, including Anti-Fatigue and Asarone, are expected to be sold in upcoming quarters. The sales territory includes Guangdong province, Guangxi Autonomous Region, Yunnan Province, Guizhou Province, Fujian Province, Sichuan Province, Chongqing City, Hainan Province, Hubei province and Hunan Province. The sales to Sinopharm Holding Guangzhou Co., Ltd. are to occur monthly.

"Since our factory was CGMP certified and began production, AXM Pharma has entered into the distribution agreement with the largest sales amount in the company's history," said Madame Wang, chairman of AXM Pharma. "2005 is expected to be a record year for AXM Pharma as the company becomes a major manufacturing and sales organization in Asian pharmaceutical and over-the-counter markets," she added.

Sinopharm Holding Guangzhou Co., Ltd., an affiliate of China National Pharmaceutical Group Corp. ("Sinopharm"), is actively engaged in the research and development, capital investment, manufacture and trade of pharmaceuticals and medical instruments. Sinopharm has achieved an annual sales volume of 10 billion RMB (over 1.2 billion U.S. Dollars) and a total import and export volume of 200 million US Dollars.