ACCESS NEWS

Dallas, TX and New York, NY, October 25, 2012 - ACCESS PHARMACEUTICALS, INC. (OTCBB: ACCP), an emerging biopharmaceutical company, announced that it has entered into definitive agreements for the purchase of $10.0 million of units, consisting of newly issued Access Series B Convertible Preferred Stock and warrants in a private placement with existing investors. The Series B Convertible Preferred Stock is convertible into common stock at $0.50 per share, and the unit provided for 100% warrant coverage with an exercise price of $0.50 per share and a term of six years.  The financing consists of approximately $4.7 million of new investment and the exchange of approximately $5.3 million of outstanding dividends payable. The transaction is expected to close today, subject to the satisfaction of customary closing conditions.

“We believe this financing strengthens the Company’s financial position by enabling the repayment of overdue debt and significantly reducing the level of outstanding dividends payable,” said Jeffrey Davis, CEO of Access Pharmaceuticals, Inc.  He continued, “This financing gives us the resources to continue MuGard commercialization efforts, and we appreciate the continued support of our current investor group.”