Stull, Stull & Brody Announces Class Action Against Pharmos Corp.

NEW YORK -- Notice is hereby given that a class action lawsuit was filed on February 10, 2005 in the United States District Court for the District of New Jersey, on behalf of all persons who purchased the publicly traded securities of Pharmos Corp. ("Pharmos") (Nasdaq:PARS) between August 23, 2004 and December 17, 2004, inclusive (the "Class Period").

The Complaint charges Pharmos, Haim Aviv and Gad Riesenfeld with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that defendants knew or recklessly disregarded the fact that dexanabinol was ineffective in treating severe traumatic brain injury ("TBI"); (2) that the defendants maintained the appearance that dexanabinol was effective for the sole purpose of allowing the Company's executives to sell their own shares at artificially inflated prices; and (3) that the Company's statements regarding the effectiveness of the drug were lacking in any reasonable basis when made.

On December 20, 2004, Pharmos announced top-line results of its pivotal Phase III trial of dexanabinol to treat severe TBI. The Company drug, dexanabinol did not demonstrate efficacy as measured by the primary clinical outcome endpoint, the Extended Glasgow Outcome Scale. News of this shocked the market. Shares of Pharmos fell $2.32 per share, or 66.29 percent, on December 20, 2004 to close at $1.18 per share, on unusually high volume.

Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in both New York and Los Angeles.

If you acquired Pharmos common stock between August 23, 2004 and December 17, 2004, you may, no later than March 25, 2005, request the Court appoint you as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at [e-mail], or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.