FOR IMMEDIATE RELEASE

Contact: Christine Crooks, Director of Marketing
Carmel Pharma, Inc. 1-866-487-9250 ext 202

CARMEL PHARMA, INC. SIGNS EXCLUSIVE DISTRIBUTION AGREEMENT WITH THE APOTHECARY SHOPS FOR VETERINARY ONCOLOGY BUSINESS

Columbus, Ohio, March 8, 2007 – Carmel Pharma, Inc., manufacturers and distributors of PhaSeal®, announced today that they have signed an exclusive distribution agreement with The Apothecary Shops for their veterinary oncology business.  
The Apothecary Shops, the Southwest’s foremost chain of independent pharmacies, focuses their practice on several specialty areas, including veterinary medicine.   The pharmacists and certified technical staff at all 11 locations are on the cutting edge of the pharmaceutical industry.

"I am confident that this innovative partnership will be seamless and will parallel the quality of service our customers have come to expect from Carmel Pharma, said David Schneider, President of Carmel Pharma, Inc., “This joint venture is an important step to expand the awareness of safe handling across specific market segments.  It will enable us to offer the best technology and dedicated services to our veterinary customers."

The Apothecary Shops, founded in 1996, was the first veterinary pharmacy in the nation to earn the Pharmacy Compounding Accreditation Board’s (PCAB) Seal of Accreditation – a new system of standards created by some of the leading organizations in pharmacy. The PCAB Seal of Accreditation shows their dedication to protecting patients by practicing safe, high-quality compounding. Since their formation, they have been a leader in preparing customized medications to meet the specific needs of patients and veterinarians.

“We are extremely proud and excited to bring this pioneering system of safety to the veterinary oncology marketplace. The Apothecary Shops is recognized as a leader in bringing first class medicine and products to our patients and customers. Carmel Pharma and PhaSeal extend that ability by allowing us to offer the only closed-system drug transfer device available and the best protection possible to our veterinary customers, “ Hamilton Baiden, Vice President  of Sales and Marketing.

Carmel Pharma is the market leader in the safe handling arena, providing the only clinically proven closed-system available known as PhaSeal.  The PhaSeal System is manufactured by Carmel Pharma AB in Gothenburg, Sweden and is distributed from its U.S. subsidiary, Carmel Pharma, Inc., in Columbus, OH. PhaSeal has been in use in the U.S. since 2000 and has been implemented in over 500 cancer centers, oncology practices, specialty pharmacies in the United States, including M.D. Anderson in Houston, TX, Texas Children’s and UCSF. If you have questions regarding the PhaSeal System or Carmel Pharma, Inc., please contact Christine Crooks, Director of Marketing at 866-487-9250 ext.202, or email us at info@carmelpharmausa.com.