RXEI RXElite Inc (CE)

RxElite, Inc. (OTCBB: RXEI), which develops and markets generic prescription drug products in specialty generic markets in the areas of anesthesia, sterile liquid dose drugs (which includes ophthalmic and sterile inhalation respiratory products and injectable drugs), and active pharmaceutical ingredients (API), today announced that it had received a letter from its supplier, Minrad International, Inc. Minrad is RxElite's supplier of Isoflurane, Sevoflurane and Enflurane. The letter is seeking to exercise rights under an exclusive distribution agreement and claiming that RxElite was in default under its agreement. RxElite stated that it is in continuing discussions with Minrad and was surprised by the unilateral action by Minrad it received in the midst of ongoing global discussions concerning product and supply arrangements.

Jonathan Houssian, CEO of RxElite, stated, "We are in constant dialogue with Minrad representatives and do not believe this unilateral action to be permitted under our contracts to end our exclusivity. During these negotiations, regardless of the outcome or our discussions, we intend to continue to distribute Minrad anesthesia products and to ensure continuous supply to our steadily growing customer base in the anesthesia market. I believe both RxElite and Minrad are unified in our goal of putting the customer first."

About RxElite, Inc.

RxElite, Inc. develops, manufactures, and markets generic prescription drug products in specialty generic markets. These markets include products in the areas of anesthesia, sterile liquid dose drugs (including respiratory inhalation drugs, ophthalmics, and injectable drugs), complex active pharmaceutical ingredients, and other specialty areas. www.RxElite.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 involving known and unknown risks, delays, and uncertainties that may cause our actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These risks, delays, and uncertainties include, but are not limited to: risks associated with the uncertainty of future financial results, our reliance on our sole supplier, the limited diversification of our product offerings, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.

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