EXHIBIT 99.1   99 Wood Avenue South, Suite 311 Iselin, NJ 08830 www.pharmoscorp.com  Pharmos Corporation Reports 2005 Third Quarter Results  Iselin, NJ, November 3, 2005- Pharmos Corporation (Nasdaq: PARS) today reported financial results for the third quarter ended September 30, 2005. For the 2005 third quarter the net loss was $3.3 million, or $ 0.17 per share compared to a net loss of $5.9 million, or $ 0.33 per share in the 2004 third quarter. The 45% decrease in net loss was due primarily to a 50% decrease in net research and development expenditures and the near elimination of interest expense due to the repayment of convertible debt as of March 31, 2005. Cash and short-term investments totaled $48.2 million on September 30, 2005. Operating expenses for the 2005 third quarter were $3.7 million, 34% lower than the third quarter of 2004. Net research and development expenses in the 2005 third quarter were $1.9 million, 50% lower than the $3.8 million in the third quarter of 2004. The year-over-year decrease was due primarily to a reduction in clinical trial expense associated with a large-scale Phase III trial and an exploratory Phase IIa trial, both of which were ongoing in the 2004 third quarter and completed in the 2004 fourth quarter. The primary research and development expenditures in the third quarter 2005 were related to continued development of the CB2-selective platform, including initiation of Phase I clinical testing of cannabinor, Pharmos lead product candidate for the treatment of pain indications. General and administrative expenses of $1.7 million in the 2005 third quarter were unchanged from the third quarter of 2004, but there were variances within specific expense categories. Compensation and insurance expenses increased by $0.2 million and $0.1 million, respectively, in the third quarter 2005 compared to the third quarter 2004. The compensation increase is attributed to the amortization of deferred compensation from the September 2004 Retention Award Agreements. The increase in insurance is attributable to higher insurance rates. Professional fees decreased by $0.2 million as a result of lower accounting fees related to Sarbanes Oxley compliance compared to a year ago.  Consulting expenses decreased $0.2 million reflecting the absence of non-cash charges incurred in 2004 for stock options and to reduced pre-marketing consulting fees in 2005. Other income (expense), net, increased by $0.7 million from an expense of $0.3 million in 2004 to income of $0.4 million in 2005. The repayment of the September 2003 Convertible Debentures at the end of March 2005 eliminated $0.8 million interest expense for the third quarter. Additionally, interest income for the 2005 third quarter was $0.4 million, compared to $0.1 million in the 2004 third quarter. Offsetting these improvements, the market to market valuation of warrants in the 2005 third quarter decreased year-over-year by $0.3 million. Haim Aviv, Ph.D., Chairman and CEO, said, We are pleased to report that during the third quarter the Phase I trial of cannabinor in healthy volunteers was initiated and that dosing was completed in October. We look forward to completing data analysis and announcing the results before year-end. In 2006 we expect to move into the clinic with two major initiatives. We plan to undertake Phase II trials with cannabinor to treat neuropathic and post-operative pain early in the year. We also expect to initiate Phase II clinical trials in early 2006 to treat pain by delivering NSAIDs with our NanoEmulsion drug delivery technology. For the nine months ended September 30, 2005, Pharmos recorded net income of $0.05 million, or $0.00 per share, compared to a net loss of $17.2 million, or $0.97 per share for the same period in 2004. In the 2005 first quarter Pharmos received a net milestone payment of $10.7 million from a former marketing partner. As a result of this non-recurring milestone event, the Company recorded positive income for the first nine months of 2005.    Total operating expenses were $11.8 million, a decrease of 19% from $14.5 million for the same period in 2004. Net research and development expenditures were $6.2 million, a decrease of 35% from $9.6 million for the same period in 2004. The decrease reflects lower clinical development expenditures in 2005 compared to 2004. Research and development expenses for the first nine months of 2005 are largely attributable to preclinical development of cannabinor and to extending the Companys CB2-selective technology platform.

General and administrative expenses for the nine months ended September 30, 2005 increased by $0.8 million or 17%, from $4.5 million for the same period in 2004, primarily due to increased compensation, professional fees, and insurance by $0.8 million, $0.4 million, and $0.3 million, respectively in 2005. The increase in compensation is attributed to the amortization of deferred compensation from the Retention Award Agreements awarded in the third quarter of 2004. The higher professional fees in 2005 are attributed to increased legal fees related to the class action suits and higher accounting fees related to Sarbanes-Oxley compliance. The increase in insurance is attributable to higher insurance rates. Partially offsetting the increases, consultant expenses were lower by $0.6 million due to a non-cash charge in 2004 for stock options provided to two key consultants and to reduced pre-marketing consulting fees in 2005

Other income (expense), net, increased in the first nine months of 2005 by $14.5 million from an expense of $2.7 million for the same period in 2004 to income of $11.8 million in 2005. Income of $10.7 million was recognized for the net payment received from Bausch & Lomb in the first quarter of 2005. Interest income increased to $1.0 million in 2005 from $0.5 million in 2004 as a result of a higher average investment balance. Additional benefit was realized by a decrease of $3.1 million in interest expense to $0.2 million in 2005 from $3.2 million in 2004. The decrease in 2005 interest expense is a result of the substantially reduced average outstanding balance during the first nine months of 2005 of the September 2003 Convertible Debentures that were fully repaid at the end of March 2005.

Pharmos discovers and develops novel therapeutics to treat a range of indications including neurological and inflammatory disorders. The Companys core proprietary technology platform focuses on discovery and development of synthetic cannabinoid compounds. Cannabinor, the lead CB2-selective receptor agonist candidate, is undergoing Phase I safety studies and, if successful, will enter Phase II testing in pain indications in early 2006. From the dextrocannabinoid family, the neuroprotective drug candidate dexanabinol completed a Phase IIa trial as a preventive agent against post-surgical cognitive impairment. Other compounds from Pharmos proprietary synthetic cannabinoid library are in pre-clinical studies targeting pain, multiple sclerosis, rheumatoid arthritis and other disorders.The Companys NanoEmulsion drug delivery system is in clinical-stage
development for topical application of analgesic and anti-inflammatory agents.

Statements made in this press release related to the business outlook and future financial performance of the Company, to the prospective market penetration of its drug products, to the development and commercialization of the Companys pipeline products and to the Companys expectations in connection with any future event, condition, performance or other matter, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties which may cause results to differ materially from those set forth in these statements. Additional economic, competitive, governmental, technological, marketing and other factors identified in Pharmos filings with the Securities and Exchange Commission could affect such results.


ContactsPharmos U.S.
        The Ruth Group, Inc.Gale Smith
        John Quirk (investors)(732) 452-9556
        (646) 536-7029Pharmos Israel
        Janine McCargo (media)Irit Kopelov
        (646) 536 7033011-972-8-940-9679

(Tables attached)


PHARMOS CORPORATION

(Unaudited)

Condensed Consolidated Statements of Operations






Three months
      ended
      September 30,
    
    Nine months
      ended
      September 302005
    
    2004
    
    2005
    
    2004**Expenses**Research
      and development, gross
    
    $
    2,180,137
    
    $
    4,811,747
    
    $
    7,225,373
    
    $
    12,316,830Grants
    
    
    (284,185
    )
    
    (1,032,813
    )
    
    (1,015,640
    )
    
    (2,739,958
    )Research
      and development, net of grants
    
    
    1,895,952
    
    
    3,778,934
    
    
    6,209,733
    
    
    9,576,872Selling,
      general and administrative
    
    
    1,734,493
    
    
    1,739,679
    
    
    5,265,239
    
    
    4,490,024Depreciation
      and amortization
    
    
    87,841
    
    
    143,300
    
    
    301,518
    
    
    443,370**Total
      operating expenses**
    
    
    3,718,286
    
    
    5,661,913
    
    
    11,776,490
    
    
    14,510,266**Loss
      from operations**
    
    
    (3,718,286
    )
    
    (5,661,913
    )
    
    (11,776,490
    )
    
    (14,510,266
    )**Other
      income (expense)**Bausch
      & Lomb payment
    
    
    
    
    
    
    
    
    10,725,688
    
    
    Interest
      income
    
    
    416,267
    
    
    147,294
    
    
    1,043,283
    
    
    450,143Interest
      expense
    
    
    (2,219
    )
    
    (756,804
    )
    
    (165,591
    )
    
    (3,244,379
    )Change
      in value of warrants
    
    
    11,562
    
    
    345,284
    
    
    254,246
    
    
    143,577Other
      (expense) income
    
    
    0
    
    
    (16,770
    )
    
    (34,723
    )
    
    (8,086
    )**Other
      income (expense), net**
    
    
    425,610
    
    
    (280,996
    )
    
    11,822,903
    
    
    (2,658,745
    )**Net
      income (loss)**
    
    
    ($
      3,292,676
    )
    
    ($
      5,942,909
    )
    $
    46,413
    
    
    ($17,169,011
    )**Net
      income (loss) per share**-
      basic
    
    
    ($ 0.17
    )
    
    ($ 0.33
    )
    $
    0.00
    
    
    ($ 0.97
    )-
      diluted
    
    
    ($ 0.17
    )
    
    ($ 0.33
    )
    $
    0.00
    
    
    ($ 0.97
    )**Weighted
      average shares outstanding**-
      basic
    
    
    18,974,338
    
    
    18,150,939
    
    
    18,974,120
    
    
    17,754,459-
      diluted
    
    
    18,974,338
    
    
    18,150,939
    
    
    18,974,954
    
    
    17,754,459




PHARMOS CORPORATION

(Unaudited)

Condensed Consolidated Balance Sheets






September
      30,
      2005
    
    December 31,
      2004**Assets**Cash
      and cash equivalents
    
    
    $
    34,678,382
    
    $
    49,014,530Short-term
      investments
    
    
    
    13,551,278
    
    
    Restricted
      cash
    
    
    
    
    
    
    4,846,155Research
      and development grants receivable
    
    
    
    589,396
    
    
    1,537,782Prepaid
      expenses and other current assets
    
    
    
    963,039
    
    
    262,810Debt
      issuance costs
    
    
    
    
    
    
    45,648**Total
      current assets**
    
    
    
    49,782,095
    
    
    55,706,925Fixed
      assets, net
    
    
    
    812,698
    
    
    987,451Restricted
      cash
    
    
    
    141,563
    
    
    139,594Severance
      pay funded
    
    
    
    779,820
    
    
    811,926Other
      assets
    
    
    
    18,496
    
    
    18,946**Total
      assets**
    
    
    $
    51,534,672
    
    $
    57,664,842**Liabilities
      and Shareholders Equity**Accounts
      payable
    
    
    $
    295,448
    
    $
    2,462,162Accrued
      expenses
    
    
    
    910,689
    
    
    1,155,413Warrant
      liability
    
    
    
    43,709
    
    
    297,955Accrued
      wages and other compensation
    
    
    
    1,164,477
    
    
    756,488Convertible
      debentures, net
    
    
    
    
    
    
    4,765,540**Total
      current liabilities**
    
    
    
    2,414,323
    
    
    9,437,558Other
      liability
    
    
    
    137,797
    
    
    39,412Severance
      pay
    
    
    
    1,048,069
    
    
    1,197,039**Total
      liabilities**
    
    
    
    3,600,189
    
    
    10,674,009Commitments
      and contingencies**Shareholders
      Equity**Preferred
      stock, $.03 par value, 1,250,000 shares authorized, none issuedand
      outstanding
    
    
    
    
    
    
    Common
      stock, $.03 par value; 60,000,000 shares authorized, 19,027,809issued
    
    
    
    570,834
    
    
    2,854,112Deferred
      compensation
    
    
    
    (805,132
    )
    
    (1,701,122
    )Paid-in
      capital in excess of par
    
    
    
    191,094,477
    
    
    188,809,955Accumulated
      deficit
    
    
    
    (142,925,270
    )
    
    (142,971,686
    )Treasury
      stock, at cost, 2,838 shares
    
    
    
    (426
    )
    
    (426
    )**Total
      shareholders equity**
    ****
    ****
    
    47,934,483
    
    
    46,990,833**Total
      liabilities and shareholders equity**
    ****
    ****
    $
    51,534,672
    
    $
    57,664,842