Generex not to proceed with acquisition of interest in Global Medical Direct

Generex Biotechnology Corporation (OTCBB: GNBT) (www.generex.com) today announced that the Company, together with Global Medical Direct, Inc. ("GMD") and its stockholders, have mutually decided not to proceed with the Company's previously announced acquisition of a 51% interest in GMD.

Generex management and its Board of Directors have concluded that it will be in the best interests of the Company and its stockholders to devote the Company's financial resources to the Company's extant and planned clinical and regulatory initiatives, including Generex Oral-lyn™, the Company's proprietary buccal insulin spray product, and the recently announced diabetes research and development collaboration with Amarantus BioSciences, Inc.

GMD and its stockholders are fully supportive of Generex in this respect and have agreed to waive payment of the transaction break fee.

"Although we see significant synergies between Generex and GMD, the timing is not yet ripe for both companies to realize significant benefits from those synergies," commented Dr. David Brusegard, the Generex Chief Operating Officer.  "We have an outstanding relationship with GMD management and hope to continue to work with them as a distributor of Generex Oral-lyn™."