Auxer Acquisition of Viva Completed

    PATERSON, N.J.--Jan. 16, 2003--The Auxer Group, Inc. (OTCBB: AXGI) announced today that the stock exchange and reorganization agreement with Viva Airlines, Inc. was completed on January 15, 2003.
    Robert J. Scott has been appointed to the Board of Directors of Auxer and has been elected as the Chairman of the Board.
    Eugene Chiaramonte has resigned as President and CEO of Auxer and Mr. Scott has been appointed to these posts. Mr. Chiaramonte has also resigned as a Director of Auxer.
    Additionally, Auxer announced that it has spun off Harvey Westbury Company as a stock dividend to all of the shareholders of record of the Corporation as of January 9th and that Westbury has been sold to Mr. Chiaramonte in exchange for retirement of debt obligations and other liabilities.
    Robert Scott stated, "We are pleased to complete the Auxer acquisition of Viva. We can now concentrate on our efforts to place Viva Airlines, Inc. into operation. Harvey Westbury Company did not fit into the business plan of Viva, which is to build an airline and related services holding company. We couldn't justify spending capital on a business that is not in synergy with the Viva plan. Therefore, it made sense for Auxer to spin off Westbury. The residual benefit of the spin off is that it provides some relief from liabilities. The Viva acquisition is the first step in building a strong Auxer. Scott quipped, "I can hear the voice from the tower. "The runway is clear. Prepare for takeoff with Viva Airlines."
    A series of announcements discussing Viva's planned operations to Puerto Rico and the Dominican Republic are being assembled and will soon follow.
    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 and other risks.