Conclusion: The Total Package

With the increase in capacity resulting from the implementation of the Company's completion of its new US GMP manufacturing plant combined with an aggressive acquisition strategy and the continued expansion of the Company's existing product line with new pharmaceutical products licensed from North America and Europe –Axm Pharma is poised to establish itself as strong international player in the manufacture and distribution of pharmaceutical products. This growth strategy - coupled with the addition of veteran management with extensive knowledge of North American product licensing and corporate governance, as well as experience in international market development - should help the Company expand its marketing and sales reach to cover exports to North America, Asia-Pacific, Africa and Europe while, at the same time, strengthening Axm Pharma's footholds in the burgeoning markets of China, Hong Kong, Taiwan, Korea, The Philippines, Indonesia, Malaysia, Singapore and Thailand.

Footnote:
Most of the foreign pharmaceutical firms in China operate under Joint Venture agreements with a large and/or state-run enterprise. The approval process within such enterprises is inherently less responsive and less nimble than a WOFE, such as Axm Pharma. Fewer than 5% of the foreign firms in China operate as a WOFE. The WOFE structure provides Axm Pharma with 100 percent ownership of Shenyang Tianwei Pharmaceutical Factory, which itself was a private enterprise. This organizational structure, coupled with Axm Pharma’s control of the growth and production of a key raw material, will give the company a major competitive edge in the market place.