Tribute Pharmaceuticals Canada (SLRXF) 8-K Stellar Pharmaceuticals Inc. Announces Revenues

EXHIBIT 99.1

DRAFT

 Press Release                                                                                                                      

 Source: Stellar Pharmaceuticals Inc.

STELLAR PHARMACEUTICALS INC. ANNOUNCES REVENUES

INCREASED BY 20.7% GROSS PROFITS UP BY 29.2%

London, Ontario, August 12, 2008 –Stellar Pharmaceuticals Inc. ("Stellar" or the “Company”)(OTCBB:SLXCF.OB) today announced that for the six month period ended June 30, 2008, total operating revenues improved by 20.7%.  This improvement was driven by increased international sales for NeoVisc (up 160.7%), while cost of products sold for the period improved to 23.5% of product sales compared to 27.8% of product sales in the same period in 2007. The reduction in cost of products sold was a result of a decrease in the cost of materials used in the manufacturing process, as well as healthier production yields. These positive operating changes resulted in a gross profit increase of 29.2% over the same six month period in 2007.

In the second quarter of 2008, increased sales revenue was mainly a result of the growth in international sales of NeoVisc, which grew by 184.0%, as Stellar’s new European partners increased their market penetration. Total Canadian market sales for the quarter increased 10.3% compared to the same period in 2007, with Uracyst sales attributing to a 19.8% increase and BladderChek sales contributing to the increase, with a 23.4% improvement compared to the second quarter of 2007.

Peter Riehl, Stellar’s President and CEO stated, “The Company is pleased with its continued growth in both revenues and gross profits during the second quarter of 2008. Gross profits during the quarter increased 14.4% over same period in 2007. This increase occurred despite the termination of the European Uracyst license agreement on March 31, 2008 and therefore, lack of royalty revenues recorded in this quarter. The Company is currently in negotiations with several potential partners for Uracyst, in the major European markets. Management believes that with these agreements in place, increased revenues from such agreements, should provide for an improved bottom line, in the latter part of 2008.”

As at June 30, 2008, the Company was debt free and had working capital of $3,235,300 of which $2,764,900 was in cash or cash equivalents.

Purchasing of Equity Securities

Pursuant to the terms of the Company's normal course issuer bid, the Company, as of the date of this report, has purchased 147,500 of its common shares at an average purchase price of $0.36.

August 12, 2008 release

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ABOUT STELLAR PHARMACEUTICALS INC.

Stellar has developed and is marketing direct in Canada and in countries around the world through out-license agreements two products based on its core polysaccharide technology: NeoVisc®, for the treatment of osteoarthritis; and Uracyst® and the Uracyst® Test Kit, its patented technology for the diagnosis and treatment of interstitial cystitis (IC), an inflammatory disease of the urinary bladder wall. Stellar also has in-licensing agreements for NMP22® BladderChek®, a proteomics-based diagnostic test for the diagnosis and monitoring of bladder cancer.

August 12, 2008 release

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STELLAR PHARMACEUTICALS INC.

CONDENSED BALANCE SHEETS

(Expressed in Canadian Dollars)

ASSETS
				As at	As at
				June 30, 2008	December 31, 2007
CURRENT				(Unaudited)	(Audited)
	Cash and cash equivalents			$        2,764,856	$        3,211,126
	Accounts receivable, net of allowance $nil (2007 - $nil)			236,886	272,341
	Inventories			234,978	305,040
	Taxes recoverable			164,714	164,714
	Prepaid, deposits and sundry receivables			115,470	44,066
				3,516,904	3,997,287
PROPERTY, PLANT AND EQUIPMENT				964,578	822,692
OTHER ASSETS				60,816	55,430
LOAN RECEIVABLE				14,822	14,822
				$        4,557,120	$        4,890,231
LIABILITIES
CURRENT
	Accounts payable			$           230,663	$           214,442
	Accrued liabilities			48,595	192,364
	Deferred revenues			2,369	10,573
				281,627	417,379
SHAREHOLDERS' EQUITY
CAPITAL STOCK
	AUTHORIZED
	Unlimited	Non-voting, convertible, redeemable and retractable
			preferred shares with no par value
	Unlimited	Common shares with no par value
	ISSUED
	23,705,040	Common shares (2007 - 23,822,540)		8,262,332	8,303,054
		Additional paid-in capital - options  - outstanding		67,730	123,002
			- expired	691,816	623,417
				9,021,878	9,049,473
DEFICIT				(4,746,385)	(4,576,621)
				4,275,493	4,472,852
				$        4,557,120	$        4,890,231

August 12, 2008 release

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STELLAR PHARMACEUTICALS INC.

CONDENSED INTERIM STATEMENTS OF OPERATIONS

AND COMPREHENSIVE LOSS AND DEFICIT

(Expressed in Canadian Dollars)

(Unaudited)

	For the Three Month Period				For the Six Month Period
	Ended June 30				Ended June 30
	2008		2007		2008		2007
PRODUCT SALES	$	645,535	$	466,624	$	974,991	$	795,555
COST OF PRODUCTS SOLD (excluding amortization of $14,068 for the  three month period ended June 30, 2008 (2007 - $27,585); and amortization of $31,284 for the six month period ended June 30,2008 (2007 - $55,171) and other items shown below of $nil; $nil (2007 - $nil; $20,145)
		148,937		118,323		229,048		221,455
MARGIN ON PRODUCTS SOLD		496,598		348,301		745,943		574,100
ROYALTY AND LICENSING REVENUES		2,400		87,851		200,356		178,616
WRITE-DOWN OF OBSOLETE INVENTORY		—		—		—		(20,145)
GROSS PROFIT		498,998		436,152		946,299		732,571
EXPENSES
Selling, general and administrative		551,893		496,986		1,042,883		1,009,770
Research and development		4,424		18,876		58,242		57,488
Amortization		30,044		40,618		60,428		81,060
		586,361		556,480		1,161,553		1,148,318
LOSS FROM OPERATIONS		(87,363)		(120,328)		(215,254)		(415,747)
INTEREST AND OTHER INCOME		19,349		31,728		48,423		65,757
NET LOSS AND COMPREHENSIVE LOSS
FOR THE PERIOD		(68,014)		(88,600)		(166,831)		(349,990)
DEFICIT,beginning of period		(4,675,438)		(4,690,570)		(4,576,621)		(4,429,180)
Effect of repurchase and cancellation of
Common Shares		(2,933)		—		(2,933)		—
DEFICIT,end of period	$	(4,746,385)	$	(4,779,170)	$	(4,746,385)	$	(4,779,170)
LOSS PER SHARE	$	0.00	$	0.00	$	(0.01)	$	(0.01)
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING(Note 9)		23,755,759		23,822,078		23,788,919		23,820,568

August 12, 2008 release

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STELLAR PHARMACEUTICALS INC.

CONDENSED INTERIM STATEMENTS OF CASH FLOWS

(Expressed in Canadian Dollars)

(Unaudited)

	For the Three Month Period				For the Six Month Period
	Ended June 30				Ended June 30
	2008		2007		2008		2007
CASH FLOWS USED IN OPERATING ACTIVITIES
Net loss for the period	$	(68,014)	$	(88,600)	$	(166,831)	$	(349,990)
Items not affecting cash
Amortization		30,044		40,618		60,426		81,060
Unrealized foreign exchange (gain) loss		(7,912)		11,750		2,317		12,670
Issuance of equity instruments for services rendered		7,538		8,199		13,125		10,948
Change in non-cash operating asset and liabilities		2,788		(37,308)		(109,397)		(165,634)
CASH FLOWS USED IN OPERATING ACTIVITIES		(35,556)		(65,341)		(200,360)		(410,946)
CASH FLOWS USED IN INVESTING ACTIVITIES
Additions to property, plant and equipment		(177,971)		(8,280)		(193,877)		(9,382)
Increase to other assets		—		(1,538)		(6,063)		(1,523)
CASH FLOWS USED IN INVESTING ACTIVITIES		(177,971)		(9,818)		(199,940)		(10,905)
CASH FLOWS USED IN FINANCING ACTIVITIES
Purchase of shares under normal course issuer bid		(43,655)		—		(43,655)		—
CASH FLOWS USED IN FINANCING ACTIVITIES		(43,655)		—		(43,655)		—
EFFECT OF EXCHANGE RATES ON CASH HELD IN
FOREIGN CURRENCY		7,910		(11,750)		(2,315)		(12,670)
CHANGE IN CASH AND CASH EQUIVALENTS		(249,272)		(86,909)		(446,270)		(434,521)
CASH AND CASH EQUIVALENTS,
Beginning of period		3,014,128		3,167,581		3,211,126		3,515,193
CASH AND CASH EQUIVALENTS,
End of period	$	2,764,856	$	3,080,672	$	2,764,856	$	3,080,672

August 12, 2008 release

Page 6

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations, to attract and retain qualified professionals, technological obsolescence; general economic conditions; and other risks detailed from time to time in the Company's filings.

Contact:

Stellar Pharmaceuticals Inc

544 Egerton St.

London, ON  N5W 3Z8

Peter Riehl

(800) 639-0643 or (519) 434-1540

or

Arnold Tenney

(416) 587-3200