Pharmos Corp.

Iselin, NJ: (Jun-07-07) Pharmos Corp. announced that its counsel entered into an agreement with plaintiffs' legal counsel to settle several class action lawsuits commenced in January 2005 and currently pending in the US District Court for the District of New Jersey. The lawsuits relate to statements purportedly made by Pharmos and its officers regarding the effectiveness of dexanabinol in treating traumatic brain injury. The settlement, which is covered in its entirety by Pharmos' insurance, has been reached with no admission of liability by any party and has been entered into to avoid costly and time consuming litigation by all parties. The parties agreed to seek the required court approvals of the settlement and filed the settlement documents with the Court on June 4, 2007. The settlement is subject to court approval. There is no assurance that the settlement will be approved by the Court. [PR NEWSWIRE: PHARMOS DEXANABINOL]