Completion of acquisition and vendor share placing

Board appointment

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, is pleased to announce that, further to its announcement of 8 February 2010, it has now completed the acquisition of the trade and certain assets of Cambridge Laboratories (Ireland) Limited and Cambridge Laboratories Limited (together the "Vendors") for a total consideration of between £14.3m and £16.4m plus the value of inventory held by the Vendors at completion (the "Acquisition").

The Company successfully raised £7.5m by way of a vendor share placing (the "Placing") to part finance the initial cash element of the consideration for the Acquisition.  28,846,154 new ordinary shares of 1 pence each in the capital of Alliance were placed with certain existing and new UK investors by Numis Securities Limited at a placing price of 26 pence per share. The balance of the initial cash element of the consideration for the Acquisition of £2.7m, and an initial payment of £0.75m towards the value of inventory acquired at completion, were financed by way of an additional £4m term loan provided by Lloyds Banking Group.  The Company expects to fund the deferred elements of the consideration and any deferred contingent consideration for the Acquisition, as detailed in its announcement of 8 February 2010, through internal cash generation and its existing working capital facility, provided by Lloyds Banking Group, which has been increased from £5m to £6m.

The Acquisition is expected to be significantly earnings enhancing to Alliance in the financial year ending 31 December 2010.

The Company is also pleased to announce that Peter Jonathan Butterfield has today been appointed to the Board of the
Company.

Mr Butterfield, age 34, has been with Cambridge Laboratories since 2004, most recently as UK Commercial Manager.  He is a Board Member of the Association of the British Pharmaceutical Industry ("ABPI") and is currently chairman of the ABPI Small Companies Forum.  Prior to joining Cambridge Laboratories, Mr Butterfield spent six years at SmithKline Beecham (now GlaxoSmithKline), where he acquired extensive sales and marketing knowledge.  He holds an honours degree in Pharmacology from the University of Edinburgh.

There is no further information in connection with the appointment of Mr Butterfield to the Board of Alliance which is required to be disclosed in accordance with Rule 17 and Schedule 2(g) of the AIM Rules for Companies

John Dawson, Alliance's Chief Executive, said: "We are delighted to welcome Peter to Alliance.  He brings with him extensive knowledge of the products acquired from Cambridge Laboratories which will be invaluable as we integrate the two businesses."

For further information:

Alliance Pharma plc                   + 44 (0) 1249 466966
John Dawson, Chief Executive
Richard Wright, Finance Director
www.alliancepharma.co.uk

Buchanan Communications        + 44 (0) 20 7466 5000
Mark Court / Stasa Filiplic / Jennie Spivey

Numis Securities Limited            + 44 (0) 20 7260 1000
Nominated Adviser: Michael Meade / Brent Nabbs
Corporate Broking: David Poutney