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Sunesis Pharmaceuticals Reports New Option Grants Under NASDAQ Marketplace Rule 4350
Date:10/4/2007

SOUTH SAN FRANCISCO, Calif., Oct. 4 /PRNewswire-FirstCall/ -- Sunesis Pharmaceuticals, Inc. (Nasdaq: SNSS) today announced the grant of employment inducement stock options awards in accordance with NASDAQ Marketplace Rule 4350 to two new non-executive employees.

The inducement stock options cover an aggregate of 48,000 shares of common stock and are classified as non-qualified stock options with an exercise price equal to the fair market value of Sunesis' common stock at the close of the trading day on the grant date. These stock options were approved by the Compensation Committee of Sunesis' Board of Directors. The options have a ten-year term and, subject to the terms and conditions of Sunesis' 2006 Employment Commencement Incentive Plan, vest over four years as follows: 25% of the shares subject to each option will vest on the one year anniversary of the grant date of each option; and the remaining 75% of the shares subject to each option will vest in 36 equal monthly increments during each of the second, third and fourth years thereafter.

Pursuant to NASDAQ Marketplace Rule 4350 (i)(1)(A)(iv), the options were granted on September 28, 2007 under Sunesis' 2006 Employment Commencement Incentive Plan, which Sunesis' Board of Directors adopted to facilitate the granting of stock options as an inducement to new employees to join Sunesis. In accordance with NASDAQ rules, these grants of stock options were made under a stock option plan without stockholder approval. NASDAQ rules require public announcement of option grants made under this type of plan.

About Sunesis Pharmaceuticals

Sunesis is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of
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