Dr. Beilharz has received and accepted a grant from the Department ofHealth, Government of Western Australia to undertake a project entitled"Evaluation of Natural Human Interferon Alpha Lozenges in thePrevention/Amelioration of Winter Colds and Flu in Perth, WesternAustralia." The study is to be completed by September 24, 2009.

"We have been collaborating with Dr. Beilharz for more than 10 years," saidDr. Cummins, CEO of Amarillo Biosciences, Inc. "During that time, Dr.Beilharz has published 10 scientific papers or abstracts on the low-dose,oral use of interferon. We are pleased to extend our research collaborationwith Dr. Beilharz. His exciting discoveries regarding how oral interferoncan protect against influenza are critically important as the worldprepares for the next influenza pandemic."

"We published in 2007 that interferon in the mouth protects mice againstfatal influenza," said Dr. Beilharz. "Our goal in our new human research isto determine if oral interferon will not only address the influenza issue,but will also address a new approach to winter colds and flu-likeconditions," said Dr. Beilharz.

Perth is a city in Western Australia with 2 million residents. The clinicalstudy will be conducted there in childcare workers, schoolteachers andhospital workers who will be naturally exposed to infections of influenzaand other respiratory pathogens. Some subjects will take placebo dailyduring the next "flu season" and others will take oral interferon at thedosages covered by the company's issued US patents. Besides patented doseformulation, two of the company's issued US patents have claims whichdirectly apply to the low-dose oral use of interferon for influenza.

About Amarillo Biosciences, Inc.

Amarillo Biosciences, Inc. is a U.S. biotechnology firm operating in globalpartnership with the Hayashibara Group, which owns 10.5% of AmarilloBiosciences shares and has provided over $18 million in loans, grants andequity investments to the company. Amarillo Biosciences' primary focusinvolves extensive and ongoing R&D into the utilization of low-dose, orallyadministered interferon as a treatment for a variety of conditions,including chronic cough (COPD), influenza, and opportunistic infections inpatients who are HIV positive. In its 23-year history, the Company hasinvested nearly $39 million to establish oral interferon as a therapeuticagent. The majority of those funds were invested in clinical trials in aneffort to achieve FDA approval for low-dose oral interferon. Additionalinformation is available on the web site at http://www.amarbio.com/.

Except for the historical information contained herein, the mattersdiscussed in this news release are forward-looking statements that involverisks and uncertainties, including uncertainties related to productdevelopment, uncertainties related to the need for regulatory and othergovernment approvals, dependence on proprietary technology, uncertainty ofmarket acceptance of oral interferon or the Company's other productcandidates and other risks detailed from time to time in the Company'sfilings with the Securities and Exchange Commission. In particular, see"Item 1. Description of Business" of the Company's Form 10-KSB for the yearended December 31, 2007.