[GRAPHIC OMITTED]

                                                     3 Bethesda Metro Center
                                                     Suite 700
                                                     Bethesda, MD  20814

                                                     Ph:   301.961.1992
                                                     Fax:  301.961.1991
                                                     Email:  alpha1bio@aol.com


                                  November 2000

Dear Stockholder,

During  the past two and one half  years,  Alpha 1  Biomedicals  has faced  very
difficult  circumstances.  As you know, during 1998 and most of 1999 the Company
had to  suspend  operations  due to  severe  financial  constraints.  Our  first
product,  Thymosin alpha 1, had been previously sold to SciClone Pharmaceuticals
in exchange for SciClone stock. This product is now approved in 20 countries.

As a result of these circumstances,  the board decided to bring in three outside
consultants to analyze our situation,  make recommendations,  and help implement
changes which were in the Company's best interests. To that end, I am pleased to
report that these  consultants  have been of great help,  although we still have
much  difficult  work  ahead  of us.  Over  the past  year we have  reduced  our
liabilities  from  $1,327,000 at December 31, 1999 to $216,000 at June 30, 2000,
$50,000  of  which   remains  due  for  a  future  supply  of  Thymosin  beta  4
("T(beta)4"),  which is  currently  under  development.  During  this  period we
renegotiated our agreements with SciClone to significantly improve our financial
situation.  As of September 30, 2000 we had  approximately  $345,000 of cash and
$680,000 of marketable  SciClone stock.  In addition,  our SEC filings have been
brought up to date.

On the  research  and  development  side,  although  hindered by limited  funds,
significant  progress  has been made and we continue  to work with the  National
Institutes of Health to develop  T(beta)4 as a treatment  for the  regeneration,
remodeling  and healing of injured  tissues,  chronic  wounds and other  related
indications.  As a result of our emphasis on developing  T(beta)4,  the Board of
Directors   has   recommended   changing   the   Company's   name  to   RegeneRx
Biopharmaceuticals, Inc.

Our consultants are advising the Board of Directors and me on a continuous basis
as we restart  operations.  We have decided for the time being that the best way
to  operate  is to  continue  to utilize a virtual  company  model.  That is, to
utilize  the  services  of  outside  experts  rather  than  build  an  expensive
infrastructure  at this time.  This  approach has worked well,  thus far, and we
expect it to continue to do so for the foreseeable future.

Over  the  coming  months  we will  seek to  complete  the  preclinical  studies
necessary  to obtain FDA  approval  for testing of  T(beta)4  in human  clinical
trials  and to try  to  create  additional  value  for  the  company  and,  most
importantly,  the stockholders.  Indeed, we are hopeful that the progress we are
making will continue. On behalf of the Alpha 1 Board of Directors, we appreciate
your  understanding  and continued support while we work for our common interest
through these challenging times.

Sincerely,



Allan L. Goldstein, Ph.D.
Chairman and CEO


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