Agoracom

EL DORADO HILLS, Calif -- Dutton Associates updates its coverage of AlphaRX (OTCBB:ALRX) maintaining a Speculative Buy rating. The 10-page report by Dutton senior analyst Stephen Handley is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. AlphaRX is a clinical stage pharmaceutical company engaged in developing novel formulations of existing drugs that are insoluble or poorly soluble in water. The Company achieved several significant milestones in fiscal 2006, ended September 30, and prospects for the current fiscal year are encouraging. Specifically, we anticipate a $3 million milestone payment once Phase II studies of the Company's lead compound are completed, and royalty and other income could approximate $500,000. There are clearly significant risks associated with an investment in AlphaRX, including the fact that the Company's market capitalization is less than $10 million and the fact that this low priced stock has been highly volatile. Nevertheless, we are favorably impressed with management's resourcefulness in capitalizing on its technology, as evidenced by collaborations announced in recent months. While it is premature to estimate the level of revenues and earnings that are possible longer term, it is clear that management is building shareholder value and the Company's modest market capitalization appears to be substantially less than the value of its technology and the potential offered by its product pipeline. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $33,000 from the Company for 4 Research Reports with coverage commencing on 11/03/2004. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing. Contact: Dutton Associates, LLC. John M. Dutton, President, 916-941-8119