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Pharmos Corporation Reports 2008 Third Quarter Results
Date:11/6/2008

result from non recurring 2007 costs related to contractual payment obligations associated with the retirement of the Company's chief executive officer, higher legal and accounting fees in 2007, a one time IRS section 382 tax analysis cost incurred in 2007, a non recurring recruitment fee of $42,000 in 2007 and higher BOD meeting costs in 2007.

The company believes that the current cash and cash equivalents totaling $6.1 million as of September 30, 2008 will be sufficient to support the currently planned continuing operations through at least December 31, 2008. The company is actively pursuing efforts to raise additional capital but there can be no assurance that such efforts will be successful.

About Pharmos Corporation

Pharmos discovers and develops novel therapeutics to treat a range of indications including specific diseases of the nervous system such as disorders of the brain-gut axis (GI/IBS), pain/inflammation, and autoimmune disorders. The Company's lead product in development, dextofisopam, is undergoing Phase 2b testing in IBS patients. Dextofisopam has completed a Phase 2a IBS study in which it demonstrated a statistically significant effect compared to placebo on the primary efficacy endpoint of adequate relief (n=141, p=0.033). The Company also has a proprietary technology platform focusing on discovery and development of synthetic cannabinoid compounds with a focus on CB2 receptor selective agonists. Various CB2-selective compounds from Pharmos' pipeline have completed preclinical studies targeting pain, multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease and other disorders. Pharmos is also working to commercialize its proprietary NanoEmulsion drug delivery system, which is in clinical-stage development for topical application of analgesic and anti-inflammatory agents.

Safe Harbor Statement

Statements made in this press release related to the business outlook and future financial performance of Phar
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