Anadys Pharmaceuticals Reports First Quarter 2008 Financial Results and ...(e of the program to accelerate mor...)

more slowly than had been previously anticipated, in part due to the

increased focus on the ANA598 program, making it less likely that

specific tumor types and a recommended Phase II dose will be identified

during 2008. As a result of this slower pace, the Company expects that

some spending on ANA773 that had been anticipated in 2008 will now be

postponed into 2009.

-- Revised Cash Outlook. Based primarily on the acceleration of ANA598

HCV development activities, partially offset by modestly decreased

spending in 2008 in the ANA773 oncology program, Anadys is revising its

expected net cash utilization for 2008 to be in the range of

$29 million to $31 million.

Webcast of Conference Call

Anadys will host a conference call at 5:00 p.m. EDT today to discuss its first quarter financial results and highlights and to provide an update on its development programs. A live webcast of the call will be available online at http://www.anadyspharma.com. A telephone replay will also be available approximately one hour after completion of the call. To access the telephone replay, dial 888-286-8010 (domestic) or 617-801-6888 (international), passcode 65984063. The webcast and telephone replay will be available through May 14, 2008.

About Anadys

Anadys Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to improving patient care by developing novel medicines in the areas of hepatitis C and oncology. The Company is developing ANA598, a small-molecule, non- nucleoside inhibitor of the NS5b polymerase for the treatment of chronic hepatitis C, and ANA773, an oral TLR7 agonist prodrug for cancer.

Safe Harbor Statement

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include
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