Cellceutix to Pursue 505(b)(2) Clinical Process for Psoriasis Drug

Company Releases Pictures of Mice Studies Showing Dramatic Response to Drug

BEVERLY, MA–(Marketwire – Sep 26, 2011) – Cellceutix Corporation (OTCQB: CTIX) (PINKSHEETS: CTIX) (the “Company”), a biopharmaceutical company focused on discovering and developing small molecule drugs to treat unmet medical conditions, today released pictures of its mice study with KM-133, the Company’s small molecule acting on the principles of immune stimulation and PRINS reduction as a new treatment for psoriasis. The pictures are available for viewing

at http://www.cellceutix.com/product-candidates/km-133—psoriasis-compound.html. The pictures show a dramatic response to treatment with KM-133. In the studies 100% of the mice responded to the treatment.

The Company also reported that it has engaged its FDA consultant for the purpose of preparing a regulatory pathway with the U.S. Food and Drug Administration (“FDA”) pursuant to Section 505(b)(2) for KM-133, as a new treatment for psoriasis.

Given the fact that the active moiety of KM-133 is an already FDA-approved product, Cellceutix believes that it will be eligible for a 505(b)(2) regulatory pathway, which permits compounds in development to be taken into advanced stages of clinical trials based upon bioequivalence from previously reported filings; saving time and money in the development process.

Research of a human xenograft animal model of psoriasis conducted by Cellceutix on KM-133 measuring it against methotrexate, a commonly used drug today in the treatment of psoriasis, showed a faster reduction of lesion appearance (84% versus 63%), a greater reduction in serum PRINS (96 versus 48%) and a significant reduction in serum IL-20 (87% versus 46%) in models treated with KM-133 as compared to methotrexate. More importantly, psoriasis lesions showed no reoccurrence in models treated with KM-133 throughout the 180-day study whereas psoriasis lesions reappeared in those treated with methotrexate in 61 days.

“Now that we have Kevetrin™ firmly on course for human trials, we can dedicate resources towards other drugs in our pipeline,” commented Cellceutix CEO Leo Ehrlich. “The psoriasis market is a multi-billion dollar opportunity in which we feel we have a competitive edge based upon our pre-clinical data of KM-133 outperforming today’s standards of treatment. The results on the mice were beyond our most optimistic expectations. Most importantly the study used a ‘human xenograft” animal model of psoriasis. We have signed confidential agreements with some large pharmas who have already shown interest in KM-133. Our belief is that based on the chemistry of KM-133, it meets the eligibility for 505(b)(2) clearance which means that we could have two extremely promising drugs in clinical trials in 2012, with KM-133 potentially being in Phase II/III trials. I am excited about all of the developments happening at Cellceutix and look forward to providing shareholders with frequent updates over the coming weeks.”

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Forward-Looking Statements: This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that could cause Cellceutix’s actual results and experience to differ materially from anticipated results and expectations expressed in these forward looking statements. Cellceutix has in some cases identified forward-looking statements by using words such as “anticipates,” “believes,” “hopes,” “estimates,” “looks,” “expects,” “plans,” “intends,” “goal,” “potential,” “may,” “suggest,” and similar expressions. Among other factors that could cause actual results to differ materially from those expressed in forward-looking statements are Cellceutix’s need for, and the availability of, substantial capital in the future to fund its operations and research and development; including the amount and timing of the sale of shares of common stock to Aspire Capital; the fact that Cellceutix’s compounds may not successfully complete pre-clinical or clinical testing, or be granted regulatory approval to be sold and marketed in the United States or elsewhere. A more complete description of these risk factors is included in Cellceutix’s filings with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements. Cellceutix undertakes no obligation to release publicly the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation.