Auxer's Announces 70% Increase in Revenue Over 1st Quarter 2001; Company Has Increased Sales & Reduced Expenses

    WEST PATERSON, N.J.--May 21, 2002--The Auxer Group, Inc. (OTCBB: AXGI - www.axgiinvestor.com) announced today the restructuring efforts have improved the Company's income statement, which shows increased revenues of 70%, reduced general administrative expenses by 83% and reduced its net loss by 90% for the period ending March 31, 2002 as compared to the first quarter of 2001.
    The Auxer Group had sales of $1,004,513 for the quarter ended March 31, 2002 as compared to sales of $590,954 for the quarter ended March 31, 2001. The increase in sales was attributed to the prepaid phone card sales. The Auxer Group had general administrative expenses of $258,697 for the quarter ended March 31, 2002 as compared to general administrative expenses of $1,539,208 for the quarter ended March 31, 2001. The Auxer Group had net losses of $189,193 for the quarter ended March 31, 2002 as compared to net losses of $1,956,149 for the quarter ended March 31, 2001. The decrease in general administrative expenses and net loss was attributed to the restructuring initiative set forth in the first quarter of 2002.
    "The restructuring has now entered its final stages. Management believes that with the reduction in losses, and if the Company continues to grow its revenues, Auxer may see profitability in the third quarter of 2002. I believe this will allow management to focus its efforts on developing sound strategies to grow its current Telecom Group, bring its cash flow positive and encourage investment into this company," 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-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.