Confidential Draft Penultimate for Sign Off and Approval For Immediate Release Sunesis Pharmaceuticals Reports Fourth Quarter and Full-Year 2007 Financial Results South San Francisco, CA

Draft Penultimate for Sign Off and Approval

Pharmaceuticals Reports Fourth Quarter

Full-Year 2007 Financial Results

San Francisco, CA, March 11, 2008 -

Pharmaceuticals, Inc. (Nasdaq: SNSS), a clinical-stage biopharmaceutical company

focused on the discovery, development and commercialization of novel

small-molecule therapeutics, today reported financial results for the quarter

and fiscal year ended December 31, 2007.

revenue for the fourth quarter of 2007 was $2.0 million, with a net loss of

million. Total revenue for the year ended December 31, 2007 was $9.7 million,

with a net loss of $38.8 million. As of December 31, 2007, cash, cash

equivalents and marketable securities totaled $47.7 million, and debt totaled

$2.3 million. Net cash used in operating activities in 2007 was $34.5

management will host a conference call to review the results of the fourth

quarter and the 2007 fiscal year today at 10:30 a.m. EDT. Individual and

institutional investors can access the call via 877-604-9668 (U.S. and Canada)

or 719-325-4904 (international). To access the live audio webcast or the

subsequent archived recording, visit the "Investors and Media - Calendar of

Events" section of the Sunesis website at http://www.sunesis.com. Please log on

to Sunesis' website several minutes prior to the start of the presentation to

ensure adequate time for any software download that may be necessary.

of the webcast will be archived on the Sunesis website for two weeks until

Sunesis' Oncology Programs

has built a portfolio of product candidates in oncology focused on inhibition

the cell-cycle and survival signaling. Our

product candidate, SNS-595,

novel naphthyridine analog, structurally related to quinolones, a class of

compounds which has not been used previously for the treatment of cancer.

SNS-595 is a specific DNA intercalator and topoisomerase II poison, causing

replication-dependent site-selective double-strand DNA damage, irreversible

arrest and rapid apoptosis. A Phase 2 single agent clinical trial of

SNS-595 in ovarian cancer and a Phase 1b clinical trial of SNS-595

combination with cytarabine in relapsed/refractory AML

ongoing. SNS-032, a potent and selective inhibitor of CDKs 2, 7 and 9, is being

evaluated in a Phase 1 clinical trial in patients with relapsed/refractory

or multiple myeloma. SNS-314, a potent and selective pan-Aurora kinase

inhibitor, is being studied in a Phase 1 dose-escalating clinical trial in

patients with advanced solid tumors. In addition, Sunesis is developing novel

small molecule inhibitors of Raf kinase and other protein kinases in

collaboration with Biogen Idec.

Sunesis Pharmaceuticals

is a clinical-stage biopharmaceutical company focused on the discovery,

development and commercialization of novel small-molecule therapeutics for

oncology and other serious diseases. Sunesis has built a broad product candidate

portfolio through internal discovery and in-licensing of novel cancer

therapeutics. Sunesis is advancing its product candidates through in-house

research and development efforts and strategic collaborations with leading

pharmaceutical and biopharmaceutical companies. For

further information on Sunesis Pharmaceuticals, please visit http://www.sunesis.com.

and the logo are trademarks of Sunesis Pharmaceuticals, Inc.

press release contains forward-looking statements including without limitation

statements related to the potential safety and efficacy of SNS-595, SNS-032

SNS-314, planned additional clinical testing and development efforts,

timing of enrollment in clinical trials and the announcement of clinical

such as "look forward," "suggests,"

"may," "expects," "designed,"

"believe," "appears" and similar expressions are intended to identify

forward-looking statements. These forward-looking statements are based upon

Sunesis' current expectations. Forward-looking statements involve risks and

uncertainties. Sunesis' actual results and the timing of events could differ

materially from those anticipated in such forward-looking statements as a result

of these risks and uncertainties, which include, without limitation, the risk

that Sunesis' drug discovery and development activities, including

enrollment and reporting of results,

halted significantly or delayed for various reasons, the risk that Sunesis'

clinical trials for SNS-595, SNS-032 and/or SNS-314 may not demonstrate safety

or efficacy or lead to regulatory approval, the risk that preliminary data

trends may not be predictive of future data or results, the risk that Sunesis'

preclinical studies and clinical trials may not satisfy the requirements of

FDA or other regulatory agencies, risks related to the conduct of Sunesis'

clinical trials and manufacturing of SNS-595, SNS-032 and SNS-314 and risks

related to Sunesis' need for additional funding. These and other risk factors

are discussed under "Risk Factors" and elsewhere in Sunesis' annual report on

Form 10-K for the year ended December 31, 2006 and other filings with the

Securities and Exchange Commission. Sunesis expressly disclaims any obligation

or undertaking to release publicly any updates or revisions to any

forward-looking statements contained herein to reflect any change in the

company's expectations with regard thereto or any change in events, conditions

or circumstances on which any such statements are based.