Release issued 29th July 2005

Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company,is pleased to announce that it has entered into a distribution agreement with Vem IIac to register, distribute and market Periostat in Turkey. Simultaneously to this agreement, Alliance has also extended its agreement with CollaGenex to add Turkey to its list of available territories.

Periostat is the first and only approved prescription medicine for the treatment of the severe gum disease periodontitis.

Vem IIac, based in Ankara, is a specialist dental pharmaceutical company and is highly experienced in the dental market in Turkey, where it currently distributes and sells a range of dental anaesthetics and consumables to more than 20,000 dental clinics.

Statistics indicate that 22 per cent of the Turkish population has advanced periodontitis, representing a potential market of approximately nine million people. Periostat will be the only enzyme suppression product on the market in Turkey to treat periodontitis.

Alliance and Vem IIac have compiled and submitted the dossier to secure the marketing authorisation for Periostat in Turkey. This registration process is expected to take between eighteen months and two years.

Commenting on the news, John Dawson, Alliance Pharma's Chief Executive, said: "I am extremely delighted with these two agreements. Periostat is a major growth opportunity for Alliance Pharma and this agreement with Vem IIac increases our international reach into a well developed dental market that represents a significant commercial opportunity. It has also produced a good understanding between us and CollaGenex on the way forward to exploit markets that were outside our original agreement."

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