Sydney, Nov 8, 2005 (ABN Newswire) - Pharmaxis Ltd (ASX: PXS) announced today the pricing of an underwritten public offering of 1,300,000 American Depositary Shares at a price of USD$24.16 per ADS. Each ADS represents 15 ordinary shares in Pharmaxis. CIBC World Markets Corp. acted as sole book-running manager of the offering.

JMP Securities LLC served as co-manager of this offering. Selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 195,000 ADSs. The offering is scheduled to close on 10 November, 2005. Pharmaxis also announced that it will place 19,900,000 ordinary shares in a placement to Australian and other non U.S. institutional, sophisticated and professional investors at a price of A$2.20 per ordinary share.

This price represents the price per ADS in the U.S. offering divided by 15. Wilson HTM served as placement agent for the Australian Placement. Pharmaxis increased the Australian placement from the 17,500,000 shares initially planned to 19,900,000. The placement is scheduled to close on 11 November, 2005. The net proceeds from both offerings after underwriting discounts and placement fees and estimated expenses are approximately US$58.6 million or A$80.0 million.

Pharmaxis plans to use the net proceeds from both offerings for the further development of Aridol and Bronchitol and commercialization of Aridol, pre-clinical development of the Company's product pipeline and further expansion of its manufacturing facilities. Pharmaxis plans to use any remaining net proceeds to accelerate the commercialization and investigate additional indications for Bronchitol, for working capital and for general corporate purposes.

Copies of the prospectus relating to the offering may be obtained from CIBC World Markets Corp., by e-mail at useprospectus@us.cibc.com or by fax at +1 (212) 667-6136 or from the Pharmaxis website (www.pharmaxis.com.au).

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