( ent of viral diseases and cancer. TheC...)Anadys Reports Preclinical Data Showing ANA773 Promotes Anti-Tumor,Activity of Natural Killer Cells,Health

ent of viral diseases and cancer. The Company's programs focus on Toll-Like Receptor-based small molecule product candidates and direct antiviral compounds that inhibit key steps in viral proliferation. The Company has core expertise in medicinal chemistry coupled with structure-based drug design, and is developing compounds for the treatment of hepatitis C infection, hepatitis B infection and cancer.

Safe Harbor Statement

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, references to the belief that TLR7 is an attractive therapeutic target for the treatment of cancer, the possibility of combining ANA773 with therapeutic antibodies against both B-cell malignancies and solid tumors, as well as the Company's plan to develop ANA773 as an oral therapy for the treatment of certain cancers and file an Investigational New Drug Application for ANA773 in the second half of 2007. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause Anadys' actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. In particular, the results of in vitro studies and initial clinical trials may not be predictive of future results, and Anadys cannot provide any assurances that any of its product candidates will not have unforeseen safety issues, will have favorable results in future clinical trials or will receive regulatory approval. In addition, Anadys' results may be affected by risks related to its collaborative relationships with Novartis and LG Life Sciences, competition from other biotechnology and pharmaceutical companies, its effectiveness at managing its financial resources, its ability to successfully develop and market products, the level of effort that its collaborative partners devote to development and commerci
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