PharmaFrontiers Reports Year End 2005 Financial Results.

THE WOODLANDS, Texas -- PharmaFrontiers Corp. (OTCBB: PFTR), a company involved in the development and commercialization of cell therapies, today reported financial results for the year ended December 31, 2005 and provided an update on its progress.

Recent highlights include:

--Acquisition of autologous T-cell vaccine rights for rheumatoid arthritis from the Shanghai Institutes for Biological Sciences (SIBS), Chinese Academy of Sciences of the People's Republic of China

--Data on adult human T-cell and stem cell technologies to be presented at the International Society for Cellular Therapy Annual Meeting

--Company to present data at Consortium of Multiple Sclerosis Centers' Annual Meeting

--Mathilda Mandel, M.D. appointed to Clinical Advisory Board

David McWilliams, chief executive officer of PharmaFrontiers, stated, "This is been a very active and productive period for PharmaFrontiers during which we have made significant progress on multiple fronts including clinical, scientific and financial. We are ramping up to start our Phase IIb clinical trial for multiple sclerosis and anticipate that it will begin shortly. In addition, we continue to have our stem cell and T-cell data accepted for presentation at important scientific and medical venues. We broadened our Company's technology base and potential future revenue base by acquiring the worldwide license from SIBS, which offers us the opportunity to develop a safe and effective T-cell vaccine for rheumatoid arthritis."

Mr. McWilliams added, "On the financial front, we are working diligently to close an equity financing that will significantly strengthen our cash reserves, giving us the necessary financial flexibility to execute our clinical program. This includes the completion of the Phase IIb clinical trial for Tovaxin(TM), initiation of Phase I clinical trials for the treatment of rheumatoid arthritis using a T-cell vaccine approach and completion of pre-clinical development and filing of an IND for the use of our proprietary stem cell technology to treat type I diabetes."

Research and Development

In January, 2006, PharmaFrontiers acquired an exclusive worldwide licensing for the intellectual property rights and research results of an autologous T cell vaccine for rheumatoid arthritis from the Shanghai Institutes for Biological Sciences (SIBS), Chinese Academy of Sciences of the People's Republic of China.

The agreement stipulates that in exchange for an initial payment and a running royalty on the sale of commercialized products, PharmaFrontiers receives the exclusive license and all information and data relating to the SIBS' Tovaxin clinical trials involving the T cell vaccine.

The Company continues to present its data at prestigious conferences within the scientific and medical community. A research paper entitled, "Autologous Trivalent T Cell Therapy in Multiple Sclerosis: A Study of Patients Previously Treated with Monovalent T Cell Therapy," has been accepted for a platform presentation at the 20th Consortium of Multiple Sclerosis Centers' Annual Meeting. Brian Loftus, M.D., Diagnostic Clinic of Houston, and the Company's lead clinical investigator, will make the presentation.

In addition, PharmaFrontiers will present three poster presentations based on the Company's adult human T-cell vaccination and stem cell regenerative medicine platform technologies at the 2006 Annual Meeting of the International Society for Cellular Therapy (ISCT) in Berlin on May 5, 2006.

Corporate Developments

On December 1, 2005, the Company appointed Mathilda Mandel, M.D. to its clinical advisory board. Dr. Mandel has been the director of the Blood Bank and Transfusion Center at the Sheba Medical Center in Tel-Hshomer, Israel, since 1994. She has been involved in studying T-cell vaccination using autologous T-Cell lines generated from MS patients for several years and will be an advisor on the production of the Company's vaccine during the Phase IIb trial.

Financial Information

Net loss for the full year 2005 was $19.4 million, or $1.24 per share, compared with a net loss for the full year 2004 of $4.6 million, or $0.73 per share.

Research and development expenses for the year ended December 31, 2005 were approximately $9.9 million, mainly reflecting the costs of the Phase I/II clinical trials for Tovaxin, pre-trial expenses for the Tovaxin Phase IIb Clinical Trial scheduled to begin in 2006 and research and development in support of pre-clinical cardiac and diabetes stem cell therapies. Research and development expenses for the year ended December 31, 2004, were approximately $2.5 million.

Interest expense was $7.3 million for the 12 months ended December 31, 2005, compared with $868,926 for the 12 months ended December 31, 2004. The increase is primarily related to the amortization of the remaining discount under the beneficial conversion feature of the Company's 15% exchangeable convertible promissory notes. The accrued interest on the notes was converted into shares of Common Stock.

General and administrative expenses during the 12 months ended December 31, 2005, was $0.6 million, little changed from the previous year. The Company anticipates increases in general and administrative expenses as it continues to develop and prepare for commercialization of its technology.

Cash and cash equivalents were $2.6 million as of December 31, 2005.

About PharmaFrontiers Corp.

PharmaFrontiers' strategy is to develop and commercialize cell therapies to treat several major disease areas such as multiple sclerosis, rheumatoid arthritis, pancreatic and cardiac conditions. PharmaFrontiers owns patented and proprietary individualized cell therapies that are in FDA Phase I/II human dose ranging clinical trials to evaluate their safety and effectiveness in treating MS. The company also holds the exclusive worldwide license for an autologous T cell vaccine for rheumatoid arthritis from the Shanghai Institutes for Biological Sciences (SIBS), Chinese Academy of Sciences of the People's Republic of China. The company also holds the exclusive worldwide license from the University of Chicago, through its prime contractor relationship with Argonne National Laboratory, for patents relating to the use of adult pluripotent stem cells derived from patients' own circulating blood.

Safe Harbor Statement

This press release contains "forward-looking statements," including statements about PharmaFrontiers' growth and future operating results, discovery and development of products, strategic alliances and intellectual property, as well as other matters that are not historical facts or information. These forward-looking statements are based on management's current assumptions and expectations and involve risks, uncertainties and other important factors, specifically including those relating to PharmaFrontiers' ability to obtain additional funding, develop its stem cell technologies, achieve its operational objectives, and obtain patent protection for its discoveries, that may cause PharmaFrontiers' actual results to be materially different from any future results expressed or implied by such forward-looking statements. PharmaFrontiers undertakes no obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

PHARMAFRONTIERS CORP.
                     (a development stage company)
                      CONSOLIDATED BALANCE SHEET
                           December 31, 2005

ASSETS
Current assets
     Cash                                                  $2,560,666
     Prepaid expenses                                         182,524
                                                  -------------------
     Total current assets                                   2,743,190

Intangible assets, net of $1,888,891 of
 accumulated amortization                                  26,130,441
Property & equipment, net of $256,082 of
 accumulated depreciation                                     479,996
Other assets                                                  388,210
                                                  -------------------
     Total assets                                         $29,741,837
                                                  ===================

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
     Accounts payable                                        $689,467
     Accrued expenses                                         240,309
     Note payable                                           1,500,000
                                                  -------------------
     Total current liabilities                              2,429,776
                                                  -------------------
Commitments and contingencies                                       -

Stockholders' equity
     Convertible preferred stock, no par value,
      10,000,000 shares authorized, none issued
      and outstanding                                               -
     Common stock, $.05 par value, 100,000,000
      shares authorized, 20,619,545 shares issued
      and outstanding                                       1,030,977
     Additional paid in capital                            50,441,948
     Deficit accumulated during the development stage     (24,160,864)
                                                  -------------------
     Total stockholders' equity                            27,312,061
                                                  -------------------
     Total liabilities and stockholders' equity           $29,741,837
                                                  ===================



                         PHARMAFRONTIERS CORP.
                     (A Development Stage Company)
                  CONSOLIDATED STATEMENTS OF EXPENSES
            Years ended December 31, 2005 and 2004 and the
     Period from January 22, 2003 (Inception) to December 31, 2005

                                                        Inception
                                                         through
                             2005          2004            2005
                           --------      --------      ------------
General and
 administrative            $550,178      $572,534       $1,203,513

Depreciation
 and amortization         1,735,209       264,819        2,000,028

Research and
 development              9,892,253     2,465,634       12,357,887

Loss on disposal
 of assets                   22,810       457,122          479,932
                       --------------  ------------   --------------

   Operating loss       (12,200,450)   (3,760,109)     (16,041,360)

Interest income              81,930         5,992           87,922

Other income                 28,174         2,379           30,553

Interest expense         (7,323,851)     (868,926)      (8,237,979)
                       --------------  ------------   --------------

NET LOSS               $(19,414,197)  $(4,620,664)    $(24,160,864)
                       ============== =============   ==============
Basic and diluted
 loss per share              $(1.24)       $(0.73)             N/A

Weighted average
 shares outstanding      15,648,365     6,309,145              N/A