ANADYS PHARMACEUTICALS ANNOUNCES EXERCISE IN FULL OF OVER-ALLOTMENT OPTION BY UNDERWRITERS

Anadys Pharmaceuticals, Inc. (Nasdaq: ANDS) today announced that the underwriters have exercised in full their over-allotment option to purchase 750,000 shares of common stock at the public offering price of $12.40 per share. Upon the closing of the purchase of the over-allotment shares and the offering, a total of 5,750,000 shares of common stock will have been sold in the offering by Anadys, resulting in gross proceeds, before commissions and expenses, of $71.3 million and net proceeds of $66.7 million (after payment of underwriting discounts and commissions, but excluding estimated offering expenses). The offering, including the purchase of the over-allotment shares, is expected to close on August 10, 2005.

PR Newswire (http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-08-2005/0004084666&EDATE=)