Release issued 3rd November 2005

Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company, is pleased to announce that it has divested Uniflu, its cold and flu product, for a one-off payment of £500,000.

Uniflu was acquired as part of the acquisition of Forceval, a prescription based multi-vitamin for clinical malnutrition, in November 2004. The UK business for Uniflu, as a consumer healthcare product, is non-core to Alliance, therefore the company has taken the decision to divest the brand to G R Lane Health Products Ltd based in Gloucester, UK, for a one-off payment of £500,000. Alliance retains its Uniflu export business, with annual sales of £419,000 which is managed via distributors.

Uniflu's presence in the UK market is underdeveloped compared with its position in several other markets, particularly Lebanon where it is market leader in the cold and flu segment.

Commenting on the news, John Dawson, Alliance Pharma's Chief Executive, said:

'We have taken the decision to divest Uniflu for a one-off payment as the product is non-core to the Alliance Pharma business. We continue to retain the export sales on Uniflu as that market is further developed and offers more value going forward.'

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 Skye Dietrich

Notes to editors

About Alliance Pharma Alliance Pharma, founded in 1996, is an AIM listed emerging 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 pharmaceutical wholesalers which service both hospital and retail pharmacies with their prescription requirements.

Alliance Pharma is also developing novel products for sleep disorders and the induction of labour.

Alliance Pharma joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.

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