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Pharmos Restructures Operations in Israel
Date:10/30/2007

s with data expected in 2009. Dextofisopam completed a successful Phase 2a IBS study in which it demonstrated a statistically significant improvement over placebo on the primary endpoint of adequate overall relief (n=141, p=0.033), and was very well tolerated. IBS affects roughly 10%-15% of U.S. adults and with a void of safe and effective available therapies represents a large, underserved market. Dextofisopam's novel non-serotonergic brain-gut mechanism holds the potential for a unique and innovative IBS treatment approach.

About Pharmos Corporation

Pharmos Corporation is a biopharmaceutical company that discovers and develops novel therapeutics to treat a range of diseases of the nervous system, including disorders of the brain-gut axis, with a focus on pain/inflammation and autoimmune disorders. The Company currently has two programs in clinical testing: the Phase 2b study of dextofisopam as a treatment for IBS and the Phase 2a study of NE/diclofenac as a treatment for osteoarthritis pain. The Company's core proprietary technology platform focuses on discovery and development of synthetic cannabinoid compounds, especially CB2 receptor-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 s
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