Anadys Pharmaceuticals Announces Initial Public Offering

San Diego, CA, March 25, 2004 – Anadys Pharmaceuticals, Inc. ("Anadys') (Nasdaq: ANDS) today announced the pricing of its initial public offering of 6,250,000 shares of common stock at a price of $7.00 per share. All of the shares are being offered by Anadys. Anadys also granted to the underwriters a thirty-day option to purchase up to an additional 937,500 shares of common stock to cover over allotments, if any. The shares will be listed on the NASDAQ Stock Market's National Market under the symbol "ANDS."

SG Cowen Securities Corporation is acting as sole book-running manager, Piper Jaffray & Co. is acting as co-lead manager, and Legg Mason Wood Walker, Incorporated and Needham & Company, Inc. are acting as co-managers for the offering.
Copies of the final prospectus relating to the offering can be obtained from either SG Cowen Securities Corporation Prospectus Department, 1221 Avenue of the Americas, 6th Floor, New York, NY 10020 or through ADP by a request faxed to (631) 254-7268.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on March 25, 2004. The public offering is being made by means of a prospectus. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

Anadys Pharmaceuticals, Inc. is a biopharmaceutical company committed to advancing patient care by discovering, developing and commercializing novel small molecule medicines for the treatment of chronic viral hepatitis, including HCV and HBV, and bacterial infections.