Circadin(R) - Prolonged Release Melatonin for Primary Insomnia is Licensed to Sigma Pharmaceuticals for Australia Markets

TEL AVIV, Israel, December 14 - Sigma Pharmaceuticals Ltd. and Neurim Pharmaceuticals Ltd.
announce Licensing Agreement for Circadin(R) - prolonged release melatonin
for primary insomnia in Australia.

Circadin(R), currently approved for use in 33 countries, is a
novel sleep aid indicated for treatment of primary insomnia. The latest
approval in Australia by the TGA, was based on clinical studies showing
positive effects on both sleep induction, sleep quality, and most
importantly, day-time-functioning as well as quality of life. The trials also
show that there are no signs of development of dependency.

Sigma Pharmaceuticals Ltd. will launch Circadin(R) in
Australia in 2010. Under the terms of the agreement, Neurim receives an
upfront payment and an ongoing share of revenues. Neurim will be responsible
for manufacturing Circadin(R).

"Circadin(R) is the first and only approved melatonin based
ethical drug" says Prof. Nava Zisapel, Chief Scientific Officer of Neurim
Pharmaceuticals Ltd. Melatonin is a naturally occurring hormone produced by
the pineal gland and it has a pivotal role in the regulation of circadian
rhythms and sleep. Endogenous melatonin levels decrease with age and may
contribute to the common complaint of poor sleep quality seen amongst the
middle aged and elderly.

"Circadin(R), an IP protected formulation which essentially
mimics the normal nocturnal melatonin profile, improves sleep quality and
morning alertness and facilitates sleep onset, is a very valuable alternative
to traditional sedative hypnotics. Most other sleep aids share a number of
drawbacks, such as dependency, amnesia and residual drowsiness, unlike
Circadin(R)," says Dr. Eran Schenker, Medical Director at Neurim
Pharmaceuticals.

"We are pleased to license Circadin(R) and introduce a new class
treatment for insomnia into Australia and New Zealand," says Elmo de Alwis,
Sigma Pharmaceuticals Managing Director. "We are confident that Sigma, the
first Asia Pacific partner to Neurim, will be able to realise the full
potential of Circadin(R) for the benefit of Australian patients."

There are plans in place to register Circadin(R) in the New
Zealand, US, Asia-Pacific and Latin America, and Neurim Pharmaceuticals is
currently seeking strategic partners for marketing and distributors for
additional markets around the globe.

About Circadin(R)

Circadin(R) (www.Circadin.info) is the first and only
IP-protected prolonged-release melatonin and the first and only melatonin
product to be approved as an ethical drug by health authorities. In clinical
trials involving thousand of patients with primary insomnia, it has been
demonstrated that administration of Circadin(R) improves sleep quality and
morning alertness and facilitates sleep onset in patients aged 55 or over.
Currently approved for commercialization in 33 countries, Circadin(R) is
undergoing plans for registration in New Zealand, the US, Asia-Pacific and
Latin American markets.

About Neurim Pharmaceuticals

Neurim Pharmaceuticals (www.neurim.com) is based in
Israel with offices in Switzerland and the UK. The company was founded in
1991 and is focused on drug discovery and development of treatments for
age-related disorders, primarily in the central nervous system (CNS). Neurim
Pharmaceuticals is seeking strategic partners.

About Sigma Pharmaceuticals

Sigma Pharmaceuticals Limited (ASX:SIP) is a leading
Australian manufacturer, wholesaler and distributor of prescription,
over-the-counter and generic pharmaceutical products to pharmacies throughout
Australia. Sigma was originally founded by two Melbourne pharmacists in 1912
and merged with Arrow Pharmaceuticals in December 2005. In 2008, Sigma
acquired Orphan Australia which is dedicated to providing highly specialised
pharmaceuticals for the treatment of serious or life threatening conditions
in Australia.

    For More information:

    Eran Schenker, MD
    Medical Director & Corporate Business Development
    Neurim Pharmaceuticals Ltd.
    Tel: +972-3-7684914 ; Cell: +972-52-6689944
    EranS@Neurim.com

    OR

    Elmo de Alwis
    Managing Director
    Sigma Pharmaceuticals Limited
    Tel: +61-(0)3-9839-2820
    Elmo.dealwis@signet.com.au

For More information: Eran Schenker, MD, Medical Director & Corporate Business Development, Neurim Pharmaceuticals Ltd., Tel: +972-3-7684914 ; Cell: +972-52-6689944, EranS at Neurim.com OR Elmo de Alwis, Managing Director, Sigma Pharmaceuticals Limited, Tel: +61-(0)3-9839-2820, Elmo.dealwis at signet.com.au