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Pharmos Issues Letter to Shareholders
Date:9/10/2007

ISELIN, N.J., Sept. 10 /PRNewswire-FirstCall/ -- Pharmos Corporation (Nasdaq: PARS) announced today it has issued the below Letter to Shareholders as part of its proxy materials for its annual meeting scheduled for October 24, 2007. Pharmos is among the first corporate issuers able to take advantage of the recently enacted SEC "Notice and Access Rule," which allows companies to post proxy materials on the internet rather than mailing them to shareholders, thereby significantly reducing printing and mailing costs of proxy materials. In an effort to ensure shareholders are aware of the Letter and the important messages it contains, the Letter is also herewith being issued in the form of a press release.

Dear Pharmos Shareholder:

This past year is best characterized as a period of significant transformation for Pharmos. In October 2006, we completed the acquisition of Vela Pharmaceuticals, Inc., thereby enhancing our product portfolio with a number of potential medications that strategically align with our existing therapeutic focus on nervous system and autoimmune disorders. More recently, we implemented a restructuring and cost reduction initiative designed to enable continued progress in our highly innovative cannabinoid 2 (CB2) receptor discovery program while better managing cash resources. Our board and management team has also been transformed in the past year: a new Chief Executive Officer and new Chief Financial Officer are in place, and several well-known, experienced and successful biotech investors have joined our board of directors. As a result of these changes, today Pharmos is a fundamentally stronger company with the framework to build shareholder value.

Through the Vela acquisition, we
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SOURCE Pharmos Corporation
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