Auriga Announces Innovative Strategic Initiative to Expand Pharmaceutical Sales Force and Revenue Potential at Minimal Costs

Business Wire,  July 31, 2006  

Tags: sales, sales force

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NORCROSS, Ga. -- Auriga Laboratories, Inc. (OTCBB:ARGA), a specialty pharmaceutical company and marketer of the Extendryl(R) family of products, today announced the launch of an innovative and unique commission-only structure that will allow the Company to expand its sales force significantly within the next 18 months, in a plan designed to maximize revenues while minimizing costs.

Auriga is among the first pharmaceutical companies to apply a commission-only structure. While many pharmaceutical companies compensate sales employees with an estimated 70% salary and the remainder in bonus, Auriga's innovative new structure will provide 100 percent commission with an additional performance incentive of stock option grants.

"By adopting this commission-only structure, we will attract only the most motivated and the most entrepreneurial sales people in our industry," said Philip S. Pesin, Chief Executive Officer of Auriga. "Our new structure not only lays the groundwork to create a cash-positive sales force, but most importantly, enables us to do so with minimal cash ramping up costs. It's a well thought-out strategy that matches Auriga's style of doing business."

The new sales force structure was developed following an internal audit which demonstrated that a small percentage of Auriga's sales force was producing a large percentage of the company's revenues, said Mr. Pesin. "We decided we wanted only the best in the business bringing Auriga products to the marketplace," he said. "Our sales reps are the Company's face to our customers and the engine of our revenues, so we instituted this method to ensure the highest levels of excellence in our sales force."

Auriga estimates that reaching the targeted 100 sales representatives through the traditional compensation structure would have cost the Company millions of dollars over the next year in ramp-up time, including training and field exploration. Recently, the Company reduced its sales force to a core group of top performers. Additional commission-only representatives will be added as necessary, with the sales force possibly growing to as many as the 100-representative mark over approximately the next 18 months.

"Our pharmaceutical products are promotionally sensitive, meaning that the market has an exponential response to having more representatives out there meeting customers," said Mr. Pesin. "For our new commission-only reps, their territory is their own business. We want them to feel like they are business owners."

Auriga is a hybrid pharmaceutical company with a unique business model that combines an extensive in-house product development division with an experienced sales and marketing team. The Company is currently developing unique and proprietary drug solutions and delivery systems to treat a wide variety of major health conditions and ailments, including respiratory diseases, the common cold and allergies, gastrointestinal diseases and central nervous system disorders.

About Auriga Laboratories(TM)

Auriga Laboratories(TM) is a specialty pharmaceutical company capitalizing on high-revenue markets and opportunities in the pharmaceutical industry through innovative 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 seeks to leverage novel material science and advanced drug delivery technologies to produce improved formulations of successful drug portfolio brands to further expand markets, sales and clinical indications for proven, successful products. Auriga's exclusive product portfolio currently includes the Extendryl(R) family of pharmaceutical products, indicated for treatment and relief of a range of acute respiratory diseases. Auriga plans to become a fully integrated pharmaceutical company by acquiring its own manufacturing and development capabilities. Moving forward, the Company plans 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/. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/auriga/quote.html.

Forward-Looking Statements

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