Trading update and full year dividend

In a trading update issued on 6 January 2010, Alliance announced that the Group’s profit before tax (excluding any impairment charges for Isprelor^®)  for the year ended 31 December 2009 was expected to be not less than £8.5m on sales of approximately £31m.  Operating profit before any impairment charges for the same period is expected to be approximately £11m, up 73% on 2008.  Net bank debt at 31 December 2009 was £21.7m, a reduction of £3.5m since 31 December 2008, despite approximately £4m of cash being used for the acquisition of Buccastem^® and Timodine^® in August 2009.

The Company is expecting to declare a final dividend of 0.23p per Ordinary Share in March 2010, to be paid in July 2010, which would give a full year dividend for 2009 of 0.30p per Ordinary Share.  Further details will be provided in the announcement of the 2009 preliminary results scheduled for 24 March 2010.

For further information:

Alliance Pharma plc                 +44 (0) 1249 466966

John Dawson, Chief Executive

Richard Wright, Financial Director

www.alliancepharma.co.uk

Buchanan Communications     +44 (0) 207 466 5000

Mark Court/Stasa Filiplic/Jennie Spivey

Numis Securities Limited        +44 (0) 207 260 1000

Nominated Adviser: Michael Meade/Brent Nabbs

Corporate Broking: David Poutney