Axonyx Inc. Reports First Quarter 2006 Financial Results

AXONYX Inc. (NASDAQ: AXYX) announced results for the
first quarter-ended March 31, 2006. The Company reported a net loss of
$4,017,000 or $0.07 per share for the first quarter of 2006 compared
to a net loss of $10,433,000 or $0.19 per share for the first quarter
of 2005. The Company had no revenue for the quarter ended March 31,
2006 as compared to $403,000 in the first quarter of 2005. Revenue in
2005 was generated from sales in OXIS International, Inc. (OXIS.OB),
which is no longer consolidated with our results effective March 1,
2005.
   Research and development costs for the first quarter 2006 were
$2,661,000 compared to $9,322,000 for the same period in 2005. The
reduction reflects a decline in Phenserine program expenditures of
$7,046,000 due to the completion/curtailment of the Phenserine trials
in late 2005. This reduction is offset, in part, by increased
expenditures of $68,000 in the Posiphen program and $793,000 in the
Bisnorcymserine program. In 2006 Posiphen was in clinical Phase I
studies and Bisnorcymserine was in pre-clinical development towards
filing an investigational new drug application (IND).
   Sales, general and administrative expenses for the first quarter
of 2006 were $1,870,000 compared to $1,663,000 for the first quarter
of 2005. This increase is attributed to a $400,000 increase in patent
acquisition costs and a $361,000 increase in non-cash option charges
related to stock option grants to consultants and employees. These
increases are offset in part by a $234,000 reduction in professional
fees and a $332,000 reduction in OXIS expenses which are no longer
consolidated with our results effective March 1, 2005.

   About Axonyx

   Axonyx Inc. is a U.S.-based biopharmaceutical company engaged in
the acquisition and development of proprietary pharmaceutical
compounds for the treatment of Central Nervous System disorders. The
Company currently has three compounds in development for Alzheimer's
disease (AD): Phenserine - a potential symptomatic and disease
progression treatment of mild to moderate AD; Posiphen(TM)- a
potential disease progression treatment for AD now in Phase I; and
Bisnorcymcerine (BNC) - a potential symptomatic treatment of severe AD
in the pre-Investigational New Drug (IND) stage.

   This press release may contain forward-looking statements or
predictions. These statements represent our judgment to date, and are
subject to risks and uncertainties that could materially affect the
Company, including those risks and uncertainties described in the
documents Axonyx files from time to time with the SEC, specifically
Axonyx's annual report on Form 10-K. Specifically, with respect to our
drug candidates Phenserine, Posiphen(TM) and Bisnorcymserine, Axonyx
cannot assure that: any preclinical studies or clinical trials,
whether ongoing or conducted in the future, will prove successful, and
if successful, that the results can be replicated; safety and efficacy
profiles of any of its drug candidates will be established, or if
established, will remain the same, be better or worse in future
clinical trials, if any; pre-clinical results related to cognition and
the regulation of beta-APP and/or amyloid beta will be substantiated
by ongoing or future clinical trials, if any, or that any of its drug
candidates will be able to improve the signs or symptoms of their
respective clinical indication or slow the progression of Alzheimer's
disease; any of its drug candidates will support an NDA filing, will
be approved by the FDA or its equivalent, or if approved, will prove
competitive in the market; Axonyx will be able to successfully
out-license any of its drug candidates; Axonyx will be able to
successfully in-license any additional compounds; or that Axonyx will
have or obtain the necessary financing to support its drug development
programs. Axonyx cannot assure that it will be successful with regard
to identifying a (sub-) licensing partner for any of its compounds.
Axonyx undertakes no obligation to publicly release the result of any
revisions to such forward-looking statements that may be made to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.

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                              Axonyx Inc.
             Summary of Consolidated Financial Statements
                 for the Quarter ended March 31, 2006
            Condensed Consolidated Statements of Operations
                              (unaudited)


                                                   Three months
                                                 ended March 31,
                                            --------------------------
                                                2006          2005
                                            --------------------------
Revenue
 Product Sales                              $     -      $    403,000
Cost of product sales                                         210,000
                                            --------------------------
                                                              193,000
Costs and expenses:
 Research and development                     2,661,000     9,322,000
 Sales, general and administrative            1,870,000     1,663,000
                                            --------------------------
                                              4,531,000    10,985,000
                                            --------------------------
Loss from operations                         (4,531,000)  (10,792,000)

Other income (expenses)
 Interest income                                707,000       572,000
 Foreign exchange                                 9,000       (25,000)
 Gain (Loss) on issuance of subsidiary
  stock                                          32,000      (331,000)
 Equity in loss of OXIS                        (234,000)      (19,000)
 Interest expense                                     -        (2,000)
                                            --------------------------

Net loss before outside interest in
 subsidiary                                  (4,017,000)  (10,597,000)

Outside Interest in loss of subsidiary                        164,000
                                            --------------------------

Net loss                                    $(4,017,000) $(10,433,000)
                                            ==========================

Net loss per common share                   $      (.07) $       (.19)
                                            ==========================

Weighted average shares - basic and diluted  53,681,000    53,657,000


                 Condensed Consolidated Balance Sheets

                                     March 31,    December 31,
                                       2006      2005 (audited)
                                 -------------------------------
     Cash and Investments          $ 54,229,000   $ 58,338,000
     Working Capital               $ 50,072,000   $ 53,293,000
     Total Stockholders' Equity    $ 54,834,000   $ 58,383,000

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