Amarillo Biosciences and Oasis Diagnostics® Sign License and Supply Agreement for Dietary Supplement Maxisal®

January 14, 2011

Amarillo, Texas, January 14, 2011 — Amarillo Biosciences, Inc. (ABI) (OTCBB: AMAR) and Oasis Diagnostics® Corporation today announced that they have entered into an agreement under which Oasis will exclusively market Maxisal®, ABI’s dietary supplement for enhancement of salivary function, promotion of oral comfort and relief of dry mouth, in North, Central and South America, China and Taiwan.

Oasis, a salivary diagnostics and genomics company based in Vancouver, WA, plans to expand on ABI’s current marketing efforts by exploring new potential markets for Maxisal® in patients undergoing kidney dialysis and chemotherapy, those with dryness-related sexual dysfunction, and individuals with burning-mouth syndrome and other dryness-related conditions. Current estimates put the number of dry mouth sufferers in the US at 25 million.

Maxisal® is currently marketed by ABI’s licensees Egofocus OHG in Germany and Zydus Cadila in India. The first target market in Germany and India is cancer patients. There are over 400 medications, including some oncology drugs that cause dry mouth as a severe side effect. By taking Maxisal®, cancer patients may be able to relieve at least one of the unpleasant side effects associated with cancer therapy.

Maxisal® was first offered for sale in the US after clinical studies in subjects with Sjogren’s syndrome (characterized by dry eyes and dry mouth) reported that the active ingredient in Maxisal® significantly improved mouth comfort and decreased mouth and throat dryness.

“Clinical data has confirmed the beneficial effects of Maxisal in people experiencing dry mouth. With its widespread knowledge and expertise in salivary diagnosis and treatment, and its expansive network of contacts in the oral health arena, I fully expect Oasis to be successful at marketing Maxisal for individuals experiencing the unpleasant and potentially dangerous symptom of dry mouth,” said Dr. Joseph Cummins, President and CEO of ABI.

“We are extremely happy and excited to have executed this license agreement with ABI.  We feel that Maxisal® fits extremely well into our portfolio of novel tools for oral health and will open up new windows of opportunity for our growing company and its partners,” said Dr. Paul Slowey, CEO of Oasis Diagnostics® Corporation.

About Amarillo Biosciences

Amarillo Biosciences, Inc. is a U.S. biotechnology firm operating in global partnership with the Hayashibara Group, which also holds 6% 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

About Oasis Diagnostics

Oasis Diagnostics® Corporation is an emerging Company focused on two core areas of the in vitro diagnostic market – saliva based diagnostics and genomics.  Over the past eight years the Company has assembled a portfolio of proprietary devices and tools for the standardized collection of saliva, immediate disease testing from saliva and the collection of DNA from saliva specimens.  Oasis’ non-invasive collection and testing technologies address the three main segments of the IVD market- molecular diagnostics, rapid, point-of-care testing and diagnostics performed in the laboratory, and may be applied to a variety of areas including infectious diseases [including tuberculosis and HIV], steroid hormones for general wellness, oncology, immune response, cardiovascular disease and many others. Additional information is available on the web at

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.