Pharmos Corporation Engages Cowen to Assist the Company with Accelerating a Partnership for Dextofisopam

Iselin NJ, October 21, 2009 – Pharmos Corporation (OTCBB – PARS.PK); on September 14, 2009, Pharmos announced the results of its Phase 2b Dextofisopam trial for the treatment of diarrhea predominant and alternating diarrhea and constipation irritable bowel syndrome. While the results did not achieve statistical significance for the primary endpoint of overall adequate relief due to an unexpectedly high placebo response rate, the drug clearly showed activity, especially at the 200 mg dose level, confirming the efficacy seen in the Phase 2a trial. In addition, Dextofisopam was well-tolerated across all doses.

Dextofisopam is one of the most advanced compounds currently in clinical development for the treatment of IBS-d and IBS-a. Pharmos has engaged Cowen and Company to assist the Company with its previously communicated strategy of entering into a partnership for further development of Dextofisopam.

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 (IBS), pain/inflammation, and autoimmune disorders. The Company’s lead product in development is Dextofisopam for the treatment of IBS. 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. These are available for licensing / partnering.

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 statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Additional economic, competitive, governmental, technological, marketing and other factors identified in Pharmos’ filings with the Securities and Exchange Commission could affect such results.