Anacor Files Registration Statement for Initial Public Offering

The underwriters of the offering will be Morgan Stanley & Co. Incorporatedas sole book runner, Cowen and Company, LLC as co-lead, and Pacific GrowthEquities, LLC and Needham & Company, LLC as co-managers. The number of sharesto be offered and the price range for the offering have not yet beendetermined.

The offering will be made only by means of a prospectus. When available, acopy of the preliminary prospectus relating to the offering may be obtainedfrom Morgan Stanley & Co. Incorporated by emailing, or by contacting the prospectus department atMorgan Stanley & Co. Incorporated, 180 Varick, New York, NY 10014, telephone(866) 718-1649.

A registration statement relating to these securities has been filed withthe Securities and Exchange Commission but has not yet become effective. Thisregistration statement is available on the Securities and Exchange Commissionwebsite at . These securities may not be sold nor mayoffers to buy be accepted prior to the time the registration statement becomeseffective. This press release shall not constitute an offer to sell or thesolicitation of an offer to buy nor shall there be any sale of thesesecurities in any state in which such offer, solicitation or sale would beunlawful prior to registration or qualification under the securities laws ofany such state.

About Anacor Pharmaceuticals

Anacor is a biopharmaceutical company developing novel small moleculetherapeutics derived from its boron chemistry platform. Anacor has focusedinitially on developing topical applications of its compounds to treat fungal,bacterial and inflammatory diseases. Anacor's most advanced product candidateis AN2690, a novel topical antifungal in development for the treatment oftoenail onychomycosis, which is a fungal infection of the nail and nail bed.Anacor entered into a worldwide license, development and commercializationagreement for AN2690 with Schering-Plough for all indications including thetreatment of onychomycosis. Pending discussions with the FDA, Anacoranticipates that Schering-Plough will initiate Phase 3 clinical trials forAN2690 in onychomycosis in 2008. In addition, Anacor has a portfolio of othertopical product candidates in development for the treatment of psoriasis,gingivitis, acne, vaginal candidiasis and tinea pedis.