Federman & Sherwood Announces Filing of Lawsuit Against Pharmos

On Jan. 24, 2005, the class action lawsuit was filed in the United States District Court of New Jersey against Pharmos. The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The class period is from Aug. 23, 2004 through Dec. 17, 2004.

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