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

ompany that will employ them in the same development services that they undertook at Pharmos. These functions will be available for Pharmos' use at a reduced price compared to the standard market rate, on an as-needed basis.

In October 2006, as a result of the Vela acquisition, we welcomed three highly qualified and prominent former Vela directors to our board - Srinivas Akkaraju, M.D., Ph.D., designee of JP Morgan Partners/Panorama Capital, Anthony Evnin, Ph.D., designee of Venrock Associates, and Charles Newhall, III, designee of New Enterprise Associates, Inc. - and our shareholder base expanded to include three life science venture capital firms. JP Morgan Partners, New Enterprise Associates, Venrock Associates and their respective affiliates are among the premier venture capital firms in the life sciences industry with a wealth of scientific, clinical, commercial and financial experience and substantial pools of investment capital. Also appointed to the Pharmos board was Lloyd I. Miller, III, a significant Pharmos shareholder whose voting support of the Vela acquisition ensured its successful close. As we welcomed these new members, we said a fond farewell to two resigning Pharmos board members, Dr. Lawrence Marshall and Dr. Georges Anthony Marcell, whose contributions and dedication to the Pharmos board are hugely appreciated.

The transformation of our management team began in November 2005, with the naming of Alan L. Rubino as President & Chief Operating Officer. Since then, Colin Neill joined the Company in October 2006 as Chief Financial Officer and Elkan R. Gamzu, Ph.D. joined Pharmos in March 2007 as Chief Executive Officer. The combined experience of these executives, all of whom are seasoned professionals from the biotech/pharmaceutical industry, translates into a first-rate management team. We also wish to express our very sincere appreciation to Dr. Haim Aviv, the founder of Pharmos, who retired from his position as Chief Executive Officer
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SOURCE Pharmos Corporation
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