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Auriga Laboratories Announces EquityNet Research Initiates Coverage of Auriga Laboratories with ``Buy'' Rating and Projected 12-Month Share Price of $4.17
10/16/2006

Report Cites Strong Competitive Advantages in Pharmaceutical
Industry, Key Market Opportunities and Innovative Sales Strategies

NORCROSS, Ga., Oct 16, 2006 (BUSINESS WIRE) --
Auriga Laboratories, Inc. (OTCBB:ARGA), a specialty pharmaceutical company driving high-growth revenues through acquisition of valuable brand portfolios and innovative drug development programs, today announced that equity analysis firm EquityNet Research has initiated paid research coverage of the Company with a detailed report that recommends a "Buy" rating, and projects a 12-month share price target of $4.17.

In determining its valuation and projected share price appreciation for Auriga, EquityNet noted a number of core growth factors, including the Company's diverse intellectual property portfolio and brand-name pharmaceuticals for the multibillion-dollar respiratory, allergy and cold markets.

EquityNet highlighted Auriga's high-growth business model enabling it to rapidly acquire and develop proprietary brands in the prescription drug marketplace, and then to maximize potential revenues through aggressive and broad intellectual property protection and innovative sales and marketing strategies.

"While traditional pharmaceutical companies, with their shrinking pipelines, labor for years developing new drugs, Auriga's process allows it to quickly narrow down the huge field of potential revenue-generating candidates," wrote Equity Net Research analyst Randy D. Lewis, CFA. "Rather than a typical fledgling pharmaceutical company, we see ARGA as a bona-fide specialty drug concern, one that has a very unique market niche, great leadership and alignment with top-notch pharmaceutical community members."

Investment highlights pertaining to Auriga noted by EquityNet include:

-- Strong competitive advantages: The Company is pursuing a wide variety of indications, and works on reformulation of already approved drugs, thus eliminating the need for lengthy and costly FDA approval.

-- Large collective market opportunity: Collectively, the illnesses targeted are some of the most common and affect literally millions of Americans each year.

-- Strong Management and Scientific Advisory Teams. The Company's world-class management and advisory team have expertise in drug delivery, innovative sales and marketing and drug development, coming from such firms and institutions as SmithKline Beecham, First Horizon Pharmaceutical Corp., Cardinal Health, and the Squibb Institute for Medical Research.

-- Increased Market Visibility. By initially focusing on common brand names such as Levall(TM), Auriga is gaining rapid market visibility and legitimacy. The Company also recently provided revenue guidance for FY 06 and 07, the latter of which we have used as a basis for our valuation target.

Among Auriga's key initiatives is the Company's recent implementation of an innovative plan to significantly expand its sales force through a commission-only structure, as opposed to the industry's standard salary-plus-commission model. Auriga implemented the sales force structure to significantly increase the number of sales representatives to maximize potential revenues -- while minimizing costs.

"Management estimates that this strategy will attract the best performers in the business and that fielding the same number of representatives under the old compensation structure would have cost the Company close to $20 million annually," wrote Mr. Lewis.

Additional competitive advantages described in the report include:

-- The Company has a diverse pharmaceutical portfolio, thus reducing dependence on any one drug for its success.

-- The Company's Initial focus has been on drugs that are already approved and overlooked by the big Pharmas, potentially minimizing competition and eliminating the need to go head-to-head with larger industry players.

-- Auriga's dynamic business model allows it to quickly pursue potential high-margin products and adapt to industry changes.

-- The management team and Scientific Advisory Board are made up of knowledgeable, deeply experienced people, some spending years at least one comparable company we chose for our valuation.

Chief Executive Officer, Philip S. Pesin said, "Auriga has engaged EquityNet Research to conduct a thorough, responsibly researched and credible analysis of Auriga and the market. Though it is fee-based research, we believe the EquityNet report presents an engaging, balanced and detailed view of our company and its diverse product portfolio and brand-name pharmaceuticals already being sold around the country."

Auriga has compensated EquityNet Research to conduct a comprehensive and objective third party research report, and the resulting analysis and assessment is EquityNet's own independent work product. Auriga did not participate in the creation of the conclusions in the report, nor its price growth projections.

The full report, produced under compensation terms described below, can be found at http://www.equitynet.net/.

About Auriga Laboratories(TM)

Auriga Laboratories(TM) is a specialty pharmaceutical company capitalizing on high-revenue markets and opportunities in the pharmaceutical industry through proactive sales, integrated marketing and advanced in-house drug development capabilities. The Company's high-growth business model combines acquisition of proven brand names, powerful product development strategies and rapidly-growing national sales teams and marketing operations. Auriga acquires valuable brand portfolios that are no longer a strategic focus for large pharmaceutical companies, then capitalizes on untapped marketplace opportunities through brand extension and directed sales/marketing programs. The Company's drug-development pipeline leverages novel material science and advanced drug delivery technologies to produce improved formulations of successful brands to further expand markets, sales and clinical indications for proven, successful products. Auriga's exclusive product portfolio currently includes the Extendryl(R) and Levall(R) families of prescription products, indicated for relief of symptoms associated with a range of acute respiratory diseases. Auriga's product portfolio also consists of Aquoral(TM) for the treatment of Xerostomia. Auriga plans to become a fully integrated pharmaceutical company by acquiring its own manufacturing and development capabilities. Moving forward, the Company will seek to acquire and/or in-license additional products and technologies to further grow revenues. For more information, please visit: www.aurigalabs.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/auriga/. For an informational video overview, visit http://www.trilogy-capital.com/tcp/auriga/video.html. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/auriga/quote.html.

Compensation Disclosures

EquityNet Research is an independent research firm and has been compensated $7,500 by the subject company for this research report. The information contained herein has been obtained from sources which are believed to be reliable, but the accuracy or completeness of the contents cannot be guaranteed. Any opinions and/or projections expressed herein are solely of the writer and are subject to change without notice. This report under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report contains forward-looking statements including expressions of belief, expectation, contemplation, estimation and other expressions not relating to historical facts and circumstances. These forward-looking statements are subject to numerous risks and uncertainties that may cause such statements not to prove accurate. Any recommendations contained in this report may not be suitable for all investors. Any investment recommendations in this report contain a high degree of risk and a prospective investor is encouraged to review in detail the company's prospectus, SEC filings, and/or other additional information. Any projections or estimates herein made assume certain economic and industry conditions and parameters subject to change.

Forward-Looking Statements

The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, those factors that are disclosed under the heading "Risk Factors" and elsewhere in our documents filed from time to time with the United States Securities and Exchange Commission and other regulatory authorities. Statements regarding the regulatory status and/or regulatory compliance of our products, our ability to secure additional financing, our ability to sustain market acceptance for our products, our dependence on collaborators, our ability to find and execute strategic transactions, or potential exposure to litigation, our exposure to product liability claims, and our prices, future revenues and income and cash flows and other statements that are not historical facts contain predictions, estimates and other forward-looking statements. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved and these statements will prove to be accurate. Important factors could cause actual results to differ materially from those included in the forward-looking statements.

SOURCE: Auriga Laboratories, Inc.

Auriga Laboratories, Inc. Philip Pesin, 877-287-4428 [e-mail] or Financial Communications Trilogy Capital Partners, Inc. Paul Karon, 800-592-6067 [e-mail]

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