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Xanax is an anti-anxiety medicine containing alprazolam. It comes under the family of benzodiazepine drugs that include clonazepam, diazepam, lorazepam, and others — Xanax act by enhancing the effects of GABA neurotransmitters in your brain. Excessive activity in the brain may cause anxiety and other psychiatric disorders. Xanax reduces these activities to treat anxiety and panic disorder.