SYNTARA LIMITED — Share Issue/Capital Change 2007

Aug 12, 2007

13 August 2007

Manager of Company Announcements Australian Stock Exchange Exchange Centre Level 3 20 Bridge Street Sydney NSW 2000

Dear Sir/Madam,

Proposed Issue of Securities – Employee Options

In accordance with Listing Rule 3.10.3, Pharmaxis advises that the directors have resolved to grant options under the Pharmaxis Ltd Employee Option Plan as follows:

Options to Employees

Class of	Number	Principal terms	Issue	Purpose of	Shareholder	Issue
security	to be		price	issue	approval	to
	issued				required	class
Unlisted	1,586,000	Exercise price of	Nil	To be issued	No	No
employee		$3.389. Vesting:		to 62
options over		25% of options to		employees of
Pharmaxis		vest at each of 30		the company
Ltd ordinary		June, 2008, 2009,		under, and in
shares		2010 and 2011,		accordance
		subject to		with, the
		approval by		Pharmaxis Ltd
		Remuneration and		Employee
		Nomination		Option Plan
		Committee of the
		Board. Options
		expire 9 August
		2017

Options to Executive Director

Class of	Number	Principal terms	Issue	Purpose of	Shareholder	Issue
security	to be		price	issue	approval	to
	issued				required	class
Unlisted	300,000	Exercise price of	Nil	To be issued	The 2006 Annual	No
employee		$3.389. Vesting:		to the Chief	Meeting
options over		25% of options to		Executive	approved the
Pharmaxis		vest at each of 30		Officer under,	issue of up to
Ltd ordinary		June, 2008, 2009,		and in	150,000 options.
shares		2010 and 2011,		accordance	Shareholder
		subject to		with, the	approval will be
		approval by		Pharmaxis Ltd	sought at the
		Remuneration and		Employee	2007 Annual
		Nomination		Option Plan	Meeting for the
		Committee of the			issue of an
		Board. Options			additional
		expire 9 August			150,000 options
		2017

The Company will lodge relevant Appendix 3Bs when required by the Listing Rules of Australian Securities Exchange.

Sincerely,

David McGarvey Company Secretary