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Pharmos Corporation Reports 2007 Third Quarter Results
Date:10/30/2007

as a treatment for pain in patients with knee osteoarthritis. The Company's core proprietary technology platform focuses on discovery and development of synthetic cannabinoid compounds, especially CB2 receptor-selective (CB2-selective) agonists. PRS-639,058, the leading CB2-selective agonist, has demonstrated promising preclinical data in neuropathic pain. Various other CB2-selective compounds from Pharmos' pipeline are in preclinical studies targeting pain, multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease and other disorders.

Safe Harbor Statement

Statements made in this press release related to the business outlook and future financial performance of Pharmos, to the prospective market penetration of its drug products, to the development and commercialization of its pipeline products and to its expectations in connection with any future event, condition, performance or other matter, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Additional economic, competitive, governmental, technological, marketing and other factors identified in Pharmos' filings with the Securities and Exchange Commission could affect such results.

PHARMOS CORPORATION

(Unaudited)

Consolidated Statements of Operations

Three months ended Nine months ended

September 30, September 30,

2007 2006 2007 2006

Expenses

Research and

development,

gross $2,711,774 $2,338,392 $9,285,543 $6,587,480

Grants (238,123) (415,203) (769,072) (1,083,464)

Research and

development, net

of grants 2,473,651 1
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SOURCE Pharmos Corporation
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