AMAR - Amarillo Biosciences Inc - Oral Interferon Development

Investor Relations: Philippe Niemetz

PAN Consultants, Ltd. Tel: 800-477-7570

Tel: 212-344-6464 Fax: 212-618-1276

Joseph M. Cummins, DVM, PhD
Amarillo Biosciences, Inc.

Tel: 806-376-1741 x 13 Fax: 806-376-9301

Amarillo Biosciences Announces Private Placement by Firebird Global Master Fund

Amarillo, Texas January 9, 2008 — Amarillo Biosciences, Inc. (OTCBB: AMAR) today announced that it had privately placed a $1,000,000 convertible preferred issue with Firebird Global Master Fund, Ltd., an affiliate of New York-based Firebird Management LLC, which manages over $3 billion.

The placement involves a securities purchase agreement pursuant to which the Company sold 1,000 shares of Series A 10% Convertible Preferred Stock which is convertible into 4,000,000 shares of common stock. In addition, Firebird Global Master Fund received warrants to purchase 4,000,000 shares of common stock at $0.30 per share.

“We are delighted to welcome Firebird Master Global Fund as a major shareholder,” said Dr. Joseph Cummins, President and CEO. “This institutional funding should help provide us with sufficient capital to complete our Phase 2 clinical studies as part of our goal of obtaining FDA approval for our low-dose oral interferon.”

The securities issued by Amarillo have not been registered under the Securities Act of 1933 or any state securities laws. Therefore, such securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act of 1933 and any applicable state securities laws. This press release does not constitute an offer to purchase any securities or a solicitation of an offer to sell any securities.

About Amarillo Biosciences, Inc.
Amarillo Biosciences, Inc. is a U.S. biotechnology firm operating in global partnership with the Hayashibara Group, which also holds 12% of Amarillo Biosciences’ shares and has provided over $18 million in loans, grants and equity investments. The company's primary focus is extensive and ongoing R&D into the use of low-dose, orally administered interferon as a treatment for a variety of conditions, including Sjogren's syndrome, Behcet’s disease, and opportunistic infections in patients who are HIV positive. In its 23-year history, the company has invested nearly $38 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 interferon. Additional information is available 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, 2006.

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