THE STEWART REPORT – SPECIAL HOTLINE UPDATE

Amarillo Biosciences, Inc.
(NASDAQ/BB: 86 cents)

St. Patrick’s Day – March 17, 2006
(Next HotLine Planned for Wednesday, March 29 , 2006)

The long and the short of it is this: Day after day, the headlines keep coming. The Bird Flu is not going away, but Dr. Joseph Cummins is – at least temporarily. Tomorrow, he and two of his directors will board a jet to Frankfurt, Germany. From there, they’ll be shuttled to some posh resort in the village of Rottachegern, in the Bavarian Alps, to discus animal and human health care issues. The complete focus will be on the H5N1 influenza pandemic, oral interferon – and money. The conversations will be held in the presence of Dr. Clause Martin and his entourage. The dollar figures will likely be as substantial as those in attendance.

Point blank, I see this as being a very serious meeting. Nothing but good things can come from a sit-down with persons of this caliber. Dr. Martin and the individuals who follow his lead are well heeled, to say the least. They include members of royalty. Monte Carlo lifestyles, passports and private aircraft are a way of life for these people – and judging by the overseas trading volume in AMAR, not one of them knows how to write a small check.

Last week, a document was faxed to me showing that, between January 20 and March 10, 2006, 3,681,099 shares changed hands on the Frankfurt Stock Exchange (FSE). The value of that statistic is immense, because … Well, for one thing, it’s not like European trading memos cross my desk every day. When they do, it’s because someone bought the wrong list, believes my name is John Q. Public, and incorrectly hopes I’m an All-American Boy who fancies himself a mutual fund genius and finds glory in losing money safely in multinational companies. I’m not, and I don’t – but that’s part of why the number is so impressive.

First off, it’s shows there’s some big international interest in our lonely little Amarillo, Texas, biotech, where the only thing that’s usually on fire (at least this week) is the surrounding prairie grass. To me, that really says something – especially when the same 3,681,099 share number is viewed relative to the whole. During that same 35-day trading period, AMAR’s U.S. trading volume was 6,621,800 shares, meaning that more than a third of all shares purchased in Amarillo Biosciences were bought overseas. It also means that, of the roughly 16.9 million total shares outstanding, about 60 percent of them changed hands. Again, these are remarkable statistics.

There’s no real way of proving it, but it’s fairly logical to assume that Dr. Martin and his crowd had a lot to do with the buy side of this equation. And that was before anybody met anybody. Now we have Dr. Cummins and his people flying to Germany to meet with Dr. Martin and his people. Precisely why, I don't know. What will come from it? Again, I don’t know.

Embarrassingly, that’s about I'll I've got. Within the strictest confines of securities analysis, fact-based research, cold hard facts and such, I’ve given you almost nothing. But I will tell you this: Amarillo Biosciences is “in play.” Shares are moving from America’s unwashed to Europe’s elite. I really think you can buy this stock at will – and I think even more strongly that you should. It’s a wonderful speculation. Soon, it could easily be trading at $2.00 to $3.00 a share. BUY.

As always, thank you for listening – and for subscribing.

J. David Stewart
Analyst and Publisher, The Stewart Report

Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. J. David Stewart and affiliates of The Stewart Report may also have long or short positions in these and other securities discussed herein, including warrants and/or options, and may buy or sell same at their own discretion. This report contains or may contain forward-looking statements within the meaning of the "safe-harbor" provisions of the US Private Securities Litigation Reform Act of 1995. This report is intended for informational purposes only and does not have regard for or take into consideration the reader's investment objective, financial situation or suitability for this security. Consult with your financial advisor and perform your own due diligence. Copyright © The Stewart Report, 2006.