Generex Biotechnology Corporation (ticker: GNBT, exchange: NASDAQ)
News Release - 13 - July -2004
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GENEREX BIOTECHNOLOGY CLOSES ON INITIAL  $1.75 OF  PRIVATE PLACEMENT

     TORONTO, July 13 2004 /PRNewswire-FirstCall via COMTEX/ - Generex
     Biotechnology Corporation (Nasdaq: GNBT) announced today that it has
     received $1,750,000 of an anticipated $3,000,000 in equity financing
     through a private placement of common stock and warrants to four investors.
     When the complete $3,000,000 has been received, the Company will have
     issued an aggregate of 2,459,016 units, consisting of a total of 2,459,016
     shares of common stock and warrants exercisable for a total of 1,967,212
     shares of common stock. The exercise price for each warrant is $1.68.
     Generex has entered into a binding agreement for the remaining $1,250,000.
     Generex expects to utilize the proceeds from the private placement to
     finance its continuing pursuit of the successful completion of territorial
     licensing agreements, accelerated clinical trials into the next stage of
     development and for working capital and other general corporate purposes.

     The investors also received additional investment rights in connection with
     the private placement. Generex is required to register for resale the
     shares issued in the private placement as well as the shares issuable upon
     exercise of the warrants and the additional investment rights received by
     the investors in the private placement. Pursuant to the terms of each
     additional investment right issued in the private placement, the investors
     have the right to purchase, within one hundred twenty (120) days after the
     effectiveness of the registration statement, up to the same number of
     shares and warrants, and at the same price, as purchased in the private
     placement; provided that under certain limited circumstances the additional
     investment rights are subject to a downward price adjustment.

     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.

     SOURCE Generex Biotechnology Corporation