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ANADYS PHARMACEUTICALS ANNOUNCES PROPOSED OFFERING OF COMMON STOCK

August 1, 2005

Anadys Pharmaceuticals, Inc. today announced that it has filed a preliminary prospectus supplement to its shelf registration statement with the Securities and Exchange Commission relating to a proposed underwritten public offering of 4,000,000 shares of its common stock. It is currently anticipated that the underwriters will be granted an over-allotment option for an additional 600,000 shares of common stock. All of the shares are being sold by Anadys Pharmaceuticals.
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