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April 26, 2004 - New drug gets funding grant

Pharmos Corporation has been awarded a grant of up to $3.1 million by the Office of the Chief Scientist (OCS) of Israel's Ministry of Industry and Trade to help fund the company's development of dexanabinol. Approximately 93% of the funding is designated for the development of dexanabinol as a treatment for traumatic brain injury, currently in advanced phase III clinical testing with patient enrollment completed and results expected by year end.

The grant is available through fiscal year 2004 and is paid in direct relationship to actual expenditures made by the company in the designated programs.

"The grant, which is in line with our expectations, is important confirmation of our work with dexanabinol. We appreciate the support from the OCS especially in light of the agency's budgetary constraints," said Haim Aviv, PhD, chairman and chief executive officer.

Prior OCS grants to help fund various research and development projects totaled approximately $10.9 million at December 31, 2003. The company is required to pay royalties to the OCS ranging from 3% to 5% of product sales, if any, that result from the research activities conducted with such funds, up to the total amount of the grants.

Pharmos discovers, develops, and commercializes novel therapeutics to treat a range of indications, in particular neurological and inflammation-based disorders.

The Gunn Law Group handles cases involving Insurance Claims, Homeowners Insurance, Property Insurance Coverage and Disputes, Insurance Bad Faith, Hurricane Insurance Claims, as well as the most serious of Personal Injury such as: Automobile Accidents, Spinal Cord Injuries, Cerebral Palsy, Traumatic Brain Injuries, Medical Malpractice, Product Liability and Wrongful Death.

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