Alliance Pharma plc (AIM: APH), an emerging speciality pharmaceutical company, is pleased to announce its preliminary results for the year ended 28 February 2005. These are the Company’s first full year results as a listed company, following the Company’s admission to AIM in December 2003.

Financial Highlights

• Turnover increased 13% to £11.8 million (2004: £10.4m) – the full year impact of two product acquisitions in November 2004, Periostat^® and Forceval^®, would show an annualised turnover of £15m
• Gross margin improved to 52.4% (2004: 48.4%)
• Adjusted EBAT (earnings before exceptional items, amortisation and tax) of £0.645 million (2004: £1.21m) – the decrease largely reflecting the investment in infrastructure and the marketing expenditure associated with current and pipeline products
• Profit before tax of £0.418 million (2004: loss of £2.15m)
• Operating cashflow remains strong at £1.59 million (2004: £2.11m)
• Adjusted earnings per share 0.52p (2004: 1.18p)
• Basic earnings per share 0.34p (2004: loss per share of 2.44p)

Operational Highlights

• Continued strong sales growth of Symmetrel^®  and Nu-Seals^®
• Acquisition of Periostat and Forceval in November 2004
• Regulatory approval anticipated imminently to begin clinical trials of Posidorm™, melatonin  in sleep disorders
• Start of Phase III clinical trials in January 2005 of APL 202 misoprostol for the induction of labour
• Launch of International division to drive overseas sales through out-licensing and distributors
• Co-promotion agreement signed with OralDent Ltd for the UK marketing and distribution of Periostat^®, a prescription medicine for the treatment of the severe gum disease periodontitis

Commenting on the results, John Dawson, Alliance Pharma’s Chief Executive, said: “These results underline the robustness of Alliance Pharma’s business model, in which the cashflow from our marketed products supports the development of our clinical pipeline. We will shortly commence the trial programme leading to registration for our product Posidorm™ for sleep disorders, which seeks to address a market that is currently at £0.5bn but which is expected to treble in the next decade.”

For further information:

Alliance Pharma plc
John Dawson, Chief Executive
Maddy Scott, Finance Director
+ 44 (0) 1249 466966

Numis Securities
Charles Spicer
+ 44 (0) 20 7776 1500

Buchanan Communications
Mark Court/Lisa Baderoon/Rebecca Skye Dietrich
+ 44 (0) 20 7466 5000