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New York, NY, March 3, 1999 - SmallCaps Online LLC announced today that it has reiterated its BUY recommendation on Access Pharmaceuticals (OTC: AXCS) following AXCS’ announcement that it had signed an agreement to acquire Virologix Inc., a private anti-viral company. The full text of this report can be accessed at SmallCaps' web site, at www.SmallCapsOnline.com.

Excerpts from the report follow:

Access Pharmaceuticals announced yesterday that it has signed a definitive agreement to acquire Virologix Inc., a private anti-viral company for an undisclosed amount of AXCS stock. The closing of the transaction is contingent upon the approval by Virologix’ shareholders and the completion of a private placement of AXCS stock. We think this is an extremely positive event for AXCS, as it further diversifies AXCS’ portfolio, adds additional product opportunities in large markets and (assuming the completion of the private placement) increases the AXCS stock float. Most importantly, it may provide the capital necessary to seek a relisting on the Nasdaq Small-Cap Market.

With this acquisition, Access enters the anti-viral market, a large, underserved market, and adds to an already impressive product portfolio. Because of this announcement, and several recent announcements of advancements of clinical programs (see research update 1/12/99), we continue to believe that AXCS shares, which currently trade OTC, are undervalued. We are reiterating our BUY recommendation for investors tolerant of the risks associated with micro-cap, OTC equity investments.

Virologix: Virologix is a privately held pharmaceutical company focused on the development of treatments for HIV and vaccines to prevent HTLV-I and HTLV-II infection. Working primarily with Rockefeller University and the University College Dublin, Virologix’ HIV program has a compound ready to enter the clinic and have substantially completed the preclinical studies of the HTLV vaccines.

Conclusion: We continue to believe that AXCS is a technology-rich company with significant potential. With one approved product, four programs scheduled to enter pivotal clinical trials during 1999 and two additional product candidates to enter early-phase clinical trials within twelve months, AXCS has depth rarely seen in an emerging pharmaceutical company. The acquisition of Virologix, we believe, only adds to AXCS’s depth. Access maintains a low cash burn rate, and plans to maintain this through lucrative partnering and licensing agreements, which should continue into the coming years.

Company Description: Access Pharmaceuticals, Inc. is an emerging pharmaceutical company developing a portfolio of drugs and advanced drug delivery systems. We characterize AXCS as an emerging pharmaceutical company, rather than a traditional biotech company, as we believe its business model has components that are less risky than the typical one-compound, or one-technology-platform, biotech company. These components include: one FDA-approved product on the market (amlexanox), a unique cancer drug candidate (Polymer Platinate AP5070), one delivery technology (ResiDermÔ ) with multiple products in development and a corporate partner, and a strategy of generating revenues from licensing and royalties, rather than manufacturing in-house. AXCS intends to continue to partner its technology to defray the high costs and spread the risks associated with clinical development of pharmaceuticals, and to take advantage of partners’ expertise in clinical trial progression, manufacturing and marketing.

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