Related Party Transactions and Outside Related Director Information

Anadys Pharmaceuticals, Inc. (ANDS)

4/18/2006 Proxy Information

On May 25, 2005, Anadys and Marios Fotiadis, a member of our Board of Directors, entered into a consulting agreement pursuant to which Mr. Fotiadis provided consulting services for the Company related to strategic finance and business development. The agreement terminated in accordance with its terms on December 31, 2005. In consideration for Mr. Fotiadis’ services, the Company paid Mr. Fotiadis $25,000 and granted him a stock option to purchase 25,000 shares of the Company’s common stock, which vested monthly over the term of the consulting agreement.