Auxer Announces Telecom Acquisition Strategy; Discounted Telecommunication Sector Creates Target Rich Environment

    WEST PATERSON, N.J.--May 7, 2002--The Auxer Group, Inc. (OTCBB:AXGI - www.axgiinvestor.com) announced today that the Board of Directors is focusing its corporate resources on sourcing acquisition candidates in the telecommunication and technology industry sectors.
    Management has identified several extremely attractive candidates that have historic revenues in the $20 - $50 million range. The Company is seeking to invest and/or acquire growth oriented and profitable operations in the areas of Telecommunications and Technology.
    Auxer is targeting companies that will enhance its current Prepaid Telecommunications group, while at the same time providing core synergies with its current base of products and services.
    "This decision for the Company to predominately focus on Telecom and Technology marks a key point in Auxer's growth strategy. Two years ago, the Company announced its interest in entering into the telecommunications arena and shortly thereafter invested into Prepaid Telecom. The foundation for implementing our current acquisition strategy is in place with our current telecom division. Today the telecom industry, as well as the technology industry, has in general undergone a significant market correction. The devalued nature of this core industry presents an excellent opportunity for Auxer to acquire solid companies with significant revenues at substantial discounts from recent valuations. It is the vision of The Auxer Group to acquire a solid company with a promising future in a depressed sector and capitalize on a market upturn," said Eugene Chiaramonte, Chairman of The Auxer Group, Inc.
    The company is currently reviewing strategies with regard to its automotive division that will further enhance shareholder value. Divestiture plans including selling the division or seeking a spin-off are currently being considered as viable options. Management expects more developments formalizing the current acquisition discussions to be forth coming soon.


    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-Factor(TM) and Platinum Series(TM).
    The Automotive Group is focused on aftermarket wholesale and distribution of automotive and marine products and parts, which includes Easy Test(R) and Garry's Royal Satin(TM).

    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 investor relations or visit our website www.axgiinvestor.com.