Pharmaxis Announces Placement of $50 Million and Share Pur... ( SYDNEY Australia Oct. 10 /Xinhua-...)

Pharmaxis Announces Placement of $50 Million and Share Purchase Plan

Date:10/10/2007

SYDNEY, Australia, Oct. 10 /Xinhua-PRNewswire-FirstCall/ -- Pharmaxis (ASX: PXS; Nasdaq: PXSL) today announced that it had raised A$50 million through a placement to Australian, U.S., Asian and European institutions and professional investors. The placement strengthens the company's balance sheet as Pharmaxis continues with a series of international Phase III trials and embarks on the expansion of its manufacturing operation in Sydney.

Pharmaxis will issue 12.8 million new fully paid ordinary shares at A$3.90 per share, an 8.9% discount to Pharmaxis' last closing price on 8 October and a 2.0% discount to the volume weighted average share price over the past 30 days. The shares to be issued will rank equally with existing ordinary shares in the capital of the company. Shares sold to U.S. institutions have not been registered under the Securities Act of 1933 and were placed under an exemption from the Act.

Settlement of the placement is scheduled to take place on 16 October 2007.

A share purchase plan will be offered to all Australian and New Zealand shareholders who hold shares as at 7.00pm on 11 October 2007 and will afford the opportunity to purchase up to $5,000 worth of fully paid ordinary shares at the placement price of A$3.90, without brokerage or transaction costs. The share purchase plan offer opens on 19 October and closes on 09 November 2007.

CONTACT:

Alan Robertson - Chief Executive Officer

Tel: +61-2-9454-7200

Email: alan.robertson@pharmaxis.com.au

Released through:

United States:

Brandon Lewis, Trout Group

Tel: +1-646-378-2915

Email: blewis@troutgroup.com

Australia:

Virginia Nicholls

Tel: +61-417-610-824