Alliance Pharma PLC - Placing to raise GBP2.5m

RNS Number:7051C

Alliance Pharma PLC

10 May 2006

For immediate release 10 May 2006

ALLIANCE PHARMA PLC

('Alliance Pharma' or 'the Company')

Placing to raise £2.5 million

Alliance Pharma plc (AIM: APH), a speciality pharmaceutical company, is pleased to announce that it has conditionally placed 14,705,883 new ordinary shares of 1p each in the capital of the Company ('Ordinary Shares') at a price of 17p per share, raising a total of £2.5 million (before expenses) for the Company.

Application has been made to AIM for the new shares to be admitted to trading, which is expected to commence on 15 May 2006.

The proceeds of the placing will be used for general corporate purposes.

John Dawson, Alliance Pharma's Chief Executive, commented:

'I am delighted by the support of new and existing investors in this fundraising, the proceeds of which will provide additional finance as the Company moves closer to the regulatory filing of key pipeline products including Posidorm for sleep disorders.'

The placing has been undertaken by Numis Securities Limited ('Numis') and is conditional on the placing agreement between Numis and the Company becoming unconditional and not being terminated on or before 15 May 2006 (or such later date as Numis and the Company may agree, being not later than 30 May 2006). The new Ordinary Shares will rank pari passu in all respects with the existing Ordinary Shares in issue.

For further information:

Alliance Pharma plc +44 (0) 1249 466966

John Dawson, Chief Executive

Maddy Scott, Finance Director

www.alliancepharma.co.uk

Buchanan Communications +44 (0) 20 7466 5000

Mark Court/Lisa Baderoon/Rebecca Dietrich

Notes to editors

About Alliance Pharma

Alliance Pharma, founded in 1996, is an AIM listed speciality pharmaceutical company based in Chippenham, Wiltshire, UK. The company has a strong track record of acquiring the rights to established niche brands and owns, or shares, the rights to 30 branded pharmaceutical products and continues to explore opportunities to expand the range.

Alliance Pharma's products are prescribed in the treatment of a wide range of conditions and include brands used in periodontitis (a serious gum disease), the prevention of heart disease, in Parkinson's disease, in nutrition, in nasal infections, in the treatment of dermatological conditions and in childbirth.

Alliance Pharma's sales are mainly prescription driven. Its products are distributed to hospitals directly and to UK and international pharmaceutical wholesalers which service both hospital and retail pharmacies with their prescription requirements.

Alliance Pharma is also developing Posidorm for sleep disorders and Isprelor for the induction of labour.

Alliance Pharma joined the AIM market of the London Stock Exchange in December

2003 and trades under the symbol APH.

This information is provided by RNS

The company news service from the London Stock Exchange END