Generex Biotechnology announces a Letter of Intent for a joint venture and licensing arrangement for Oral-lynT in India, China and Australia

Generex to receive $25 million license fee

Letter of Intent also calls for the purchase of 2 million shares of Generex's restricted common stock at $2.50 per share

Toronto, June 24, 2004 - Generex Biotechnology Corporation (Nasdaq: GNBT), a leader in the area of buccal drug delivery, announced today that it has entered into a letter of intent for the establishment of a joint venture between Generex and Sejong Capital Plc. Under the terms of the arrangement, Sejong will invest $25 million in the joint venture, which amount will be paid to Generex as a non-refundable license fee for exclusive rights to commercialize Generex's flagship product, Oral-lynT (oral insulin spray) and the RapidMistT Diabetes Management System, in India, China and Australia.

The letter of intent also calls for Sejong to purchase 2 million shares of Generex's restricted common stock at $2.50 per share for aggregate proceeds to Generex of $5 million.

The joint venture will register, market, distribute and sell Oral-lynT in India, China and Australia.

"We welcome Sejong's investment in Oral-lynT and this opportunity to expedite the clinical development and commercialization of our flagship product", said Anna Gluskin, the President & Chief Executive Officer of Generex. "The joint venture structure will allow us to continue to control and direct the further clinical and regulatory development of Oral-lynT in these jurisdictions and to participate in commercialization revenues. We believe that this agreement will represent the first in a series of partnerships, and we are seeing increased interest from prospective partners internationally."

There are approximately 70 million people afflicted with diabetes in India, China and Australia. Prevalence of diabetes in the region ranges from 2.5 to 10 percent of the population and is growing. Diabetes can lead to complications such as blindness, heart attack and renal failure. Available data suggests that early and aggressive use of insulin can play a key role in the treatment of both Type 1 and Type 2 diabetes, the postponement and possible prevention of such complications, and an improvement in the quality of life of patients with diabetes. Generex believes that its RapidMist(TM) Diabetes Management System provides a safe, simple and convenient needle-free insulin alternative.

The transactions contemplated by the letter of intent are subject to the settlement of formal agreements.

About Sejong

Sejong, a Korean company, is a diversified holding company with marketing and distribution interests and expertise in the region.

About Generex

Generex is engaged in the research and development of drug delivery systems and technology. To date, it has focused on developing a platform technology for the buccal delivery -- delivery to the oral cavity for absorption through the inner mouth mucosa -- of drugs that historically have been administered only by injection. Generex's buccal delivery technology has application to a large number of drugs.

This release and oral statements made from time to time by Generex representatives concerning the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "plans," "intends," "believes," "will," "estimates," "forecasts," "projects" or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing potential product applications, potential collaborations, product development activities, clinical studies, regulatory submissions and approvals, and similar operating matters. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Generex
with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements. Generex claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act.

Shayne Gilliatt of Generex Biotechnology Corporation, 1-800-391-6755 or
+1-416-364-2551; or Ken Sgro of CEOcast, Inc., +1-212-732-4300,
kensgro@ceocast.com , for Generex Biotechnology Corporation