The Auxer Group

[Chrisau]

TRAVERSE CITY, Mich.--(BUSINESS WIRE)--March 19, 2003--The Auxer
Group, Inc. (OTCBB:AXGI) announced today that it is considering
exiting the Depository Trust and Clearing (DTC) system and moving to
"custody trading" only in order to combat suspected short selling.
Such a move would also identify shareholders as part of a plan to
prepare for a possible BBX listing.
"The stock of our Company has been under unusually high selling
pressure in recent weeks. Accordingly, this pressure has caused the
stocks trading prices to decline. This is inconsistent with the
expectations of management and the Board of Directors," said Robert
Scott, President and CEO of Auxer.
Mr. Scott further stated, "We believe that the development of our
wholly owned subsidiary Viva Airlines, Inc. has been favorable.
Despite recent news that Viva would not become operational until late
April or early May 2003, we believe that significant progress has been
made in assembling Viva. Further, our business plan indicates that the
seasonal peak demand for passenger and cargo services to our targeted
customer will begin approximately May 15th and run through September.
Accordingly, we are targeted to link our expected start up of
operations with strong customer demand."
Mr. Scott also commented, "Despite Viva's positive developments,
the stock prices have recently fallen. This has caused the Board of
Directors to consider the possibility that illegal "naked shorting" of
Company stock may be occurring. Therefore, the Board has passed a
resolution instructing me to investigate the costs, benefits, and any
potential negatives involved in existing the DTC system, as has been
done by other companies to combat short selling."
"Exiting the DTC system, would force brokers to actually have and
deliver certificates as needed for transactions. This makes shorting
more difficult. I have already begun discussions with third parties to
determine if exiting the DTC system is in the best interest of the
Company's shareholders."
"Our goals are to have the market ultimately reflect value but not
sacrifice liquidity. Accordingly, we do not want to make it more
difficult for legitimate investors to buy or sell Company securities.
Our preliminary inquiries to several brokerage firms have indicated a
willingness to execute transactions for ex-DTC securities."
Mr. Scott said, "As part of management, I realize that human
emotions are a part of investing. Investors overreact, and so do
markets. If our recent stock activity reflects manipulation, then we
must seek methods to reduce its effect and the potential adverse
emotional reaction by our shareholders. If our recent stock activity
reflects pessimism by the investment community and/or our investors,
it is important to realize that when universal pessimism exists the
potential for remarkable buying opportunities exists."
"Our Viva plan is a good idea, a long-term perspective, and its
implementation is sure to bring prosperity. We would love to have
unanimous support now and to be popular but it is more important to
build value that will sustain the Company and its shareholders for
years to come. By following this strategy, the opportunity for the
Company's great investors will be to outdistance those who are lucky
or have profited by using unacceptable methods of trading."

Forward-looking statements in this release are made pursuant to
the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such forward-looking
statements involve risks and uncertainties, including, without
limitation, continued acceptance of the Company's products,
competition, new products, and technological changes, intellectual
property rights and other risks.

--30--NF/ny*

CONTACT: The Auxer Group, Inc.
Robert J. Scott, 231/946-4343

KEYWORD: MICHIGAN
INDUSTRY KEYWORD: BANKING
SOURCE: The Auxer Group, Inc.

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