Amarillo, Texas, August 1, 2008 — Amarillo Biosciences, Inc. (OTCBB: AMAR) today announced that it has agreed to provide interferon lozenges and other support for Western Australia’s’ government (Department of Health) sponsored human influenza clinical trial led by Dr. Manfred Beilharz, Microbiology and Immunology, School of Biomedical, Bimolecular and Chemical Sciences, Faculty of Life and Physical Sciences, The University of Western Australia.

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

“We have been collaborating with Dr. Beilharz for more than 10 years”, said Dr. 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 collaboration with Dr. Beilharz. His exciting discoveries regarding how oral interferon can protect against influenza are critically important as the world prepares for the next influenza pandemic.”

“We published in 2007 that interferon in the mouth protects mice against fatal influenza,” said Dr. Beilharz. “Our goal in our new human research is to determine if oral interferon will not only address the influenza issue, but will also address a new approach to winter colds and flu-like conditions,” said Dr. Beilharz.

Perth is a city in Western Australia with 2 million residents. The clinical study will be conducted there in childcare workers, school teachers and hospital workers who will be naturally exposed to infections of influenza and other respiratory pathogens. Some subjects will take placebo daily during the next “flu season” and others will take oral interferon at the dosages covered by the company’s issued US patents. Besides patented dose formulation, two of the company’s issued US patents have claims which directly 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 global partnership with the Hayashibara Group, which owns 10.5% of Amarillo Biosciences shares and has provided over $18 million in loans, grants and equity investments to the company. Amarillo Biosciences’ primary focus involves extensive and ongoing R&D into the utilization of low-dose, orally administered interferon as a treatment for a variety of conditions, including chronic cough (COPD), influenza, and opportunistic infections in patients who are HIV positive. In its 23-year history, the Company has invested nearly $39 million to establish oral interferon as a therapeutic agent. The majority of those funds were invested in clinical trials in an effort to achieve FDA approval for low-dose oral interferon. Additional information is available on the web site at http://www.amarbio.com/.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties, including uncertainties related to product development, uncertainties related to the need for regulatory and other government approvals, dependence on proprietary technology, uncertainty of market acceptance of oral interferon or the Company’s other product candidates and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. In particular, see “Item 1. Description of Business” of the Company’s Form 10-KSB for the year ended December 31, 2007.