Auxer Initiates Restructuring in 1st Quarter, 2002; Auxer Will Develop a New Look in 2002

    WEST PATERSON, N.J.--Jan. 3, 2002--The Auxer Group, Inc. (OTCBB: AXGI - www.axgiinvestor.com) announced today that The Auxer Group will undergo necessary restructuring in an effort to accommodate future acquisition opportunities.
    The restructuring is planned to be implemented in phases and should be completed over the course of the first quarter 2002. At this time, the company's restructuring plan does not include a restructuring of the company's equity. The initial phase of restructuring is in effect and is focused on reducing general and administrative expenses of the holding company. As part of this effort, Mr. Chiaramonte, Chairman and other key personnel have agreed to defer their compensation during this phase. Additionally, Mr. Shaver has agreed to leave his position as Executive Vice President and return to his consulting practice. Mr. Shaver will continue to provide management-consulting services and assist in the restructuring efforts. Additionally, he will develop Auxer's acquisition program independently.
    "I remain positive with Auxer's current investments. The company's prepaid products group made significant improvements in the quality of its products and has continued to grow its client base. I believe these immediate changes as well as the overall restructuring program is necessary for Auxer to continue to evolve as the speed of business continues to force companies to change and identify new ways to maintain efficiencies. Upon completing this phase, I believe that Auxer will be better positioned to attract high quality acquisitions and/or investments as well as better enable the financing arm of Auxer to support its operating groups. I plan to outline the next phase of Auxer's restructuring, make changes in Auxer's websites, and announce new product editions as early as next week," said Eugene Chiaramonte, Chairman.

    ABOUT THE COMPANY

    The Auxer Group is a holding company that consists of two groups; a Telecommunications Group and an Automotive Group. The Telecommunications Group is focused on distribution of prepaid products, which includes The X-Factora and Platinum Seriesa. The Automotive Group is focused on aftermarket wholesale and distribution of automotive and marine products and parts, which includes Easy Testa and Garry's Royal Satina.

    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.

    For further information please contact the Company at (800) 201-3972 and ask for Eugene Chiaramonte in investor relations or visit our website www.axgiinvestor.com.