PHARMOS CORPORATION RECEIVES NOTICE OF ALLOWANCE ON DEXANABINOL PATENT
FOR USE IN THE TREATMENT OF MULTIPLE SCLEROSIS

Patent Approval Follows Report Highlighting Medical Benefits of
Marijuana

ISELIN, N.J., March 23 /PRNewswire/ -- Pharmos Corporation (Nasdaq: PARS)
announced today that it has received a Notice of Allowance from the U.S.
Patent and Trademark Office for a new patent entitled Tumor Necrosis Factor
Alpha Inhibiting Pharmaceuticals, with claims covering the use of dexanabinol
as well as various non-psychotropic cannabinoid analogs, derivatives or
metabolites in the treatment of multiple sclerosis.

The new patent defines novel therapeutic applications for the use of
dexanabinol and other synthetic, non-psychotropic analogs of
cannabinoids. In preclinical tests, Pharmos has demonstrated that
dexanabinol could exert anti-inflammatory effects by preventing the
production or release of Tumor Necrosis Factor (TNF) alpha. These
compounds are also advantageous in that they do not produce certain
side effects of other anti-inflammatory drugs used in the treatment of
multiple sclerosis, such as steroids, and particularly in that they do
not cause the psychoactivity of natural cannabinoids.

"We are very pleased with the granting of this patent," said Dr. Haim
Aviv, Pharmos' Chairman and CEO. "Our expectations of dexanabinol
having multiple neurological applications are confirmed by, among
other factors, its amelioration of the severity of multiple sclerosis
in animals. Dexanabinol's neuroprotective properties could also be
beneficial by preventing or decreasing the cumulative neurological
damage caused by multiple sclerosis, which is a chronic degenerative
disease. We are looking forward to the beginning of Phase III trials
to confirm dexanabinol's efficacy in head trauma patients."

The recent completion of a successful Phase II clinical study showed
dexanabinol to be safe and well-tolerated in severe head trauma
patients. There were no unexpected adverse experiences reported for
either the drug treated or placebo group. Intracranial pressure, an
important factor and a predictor of poor neurological outcome, was
significantly reduced in the drug treated patients through the third
day of treatment, without a concomitant reduction in systolic blood
pressure.

The patent allowance follows last week's much anticipated report from
the National Academy of Sciences' Institute of Medicine (IOM)
evaluating the medical benefits of marijuana. The IOM, which was
commissioned by U.S. drug czar Barry McCaffrey, found that marijuana's
active components are potentially effective in treating muscle spasms
associated with multiple sclerosis, AIDS related anorexia, pain,
nausea, and other ailments. However, due to the risks associated with
smoking marijuana -- lung damage, cancer, and emphysema -- the drug
should be administered by a safer, fast-acting, and reliable method.
The report recommends that more clinical trials be performed to
develop a smokeless alternative to treat patients.

The worldwide market for dexanabinol in the treatment of severe head
trauma may reach $1 billion annually and is significantly larger if
other neurological conditions such as multiple sclerosis and stroke
are treated with the drug. An estimated 2.5 million people suffer
from multiple sclerosis, which is most commonly found in the United
States, Canada, Europe, and South America.

Pharmos Corporation is a pharmaceutical company specializing in the
modification of existing molecules through proprietary techniques to
reduce undesirable side effects and/or enhance efficacy.

This news release contains forward-looking statements that involve
risk and uncertainties. The development of the company's products may
differ materially from the company's expectations. Among the factors
that could result in a materially different outcome are the inherent
uncertainties accompanying new product development, action of
regulatory authorities and the results of further trials