Release issued 18th May 2006

Alliance Pharma PLC - Dermatology Acquisition

RNS Number:1753D

Alliance Pharma PLC

18 May 2006

For immediate release 18 May 2006

ALLIANCE PHARMA PLC

('Alliance Pharma' or 'the Company')

Further expansion of skincare portfolio through bolt-on acquisition

of Caraderm Limited

Alliance Pharma plc (AIM: APH), a speciality pharmaceutical company, is pleased to announce that it has agreed to acquire Caraderm Limited ('Caraderm'), a Northern Ireland company whose key asset is Dermamist, a dermatological spray for dry skin conditions.

Based on 2005 volumes, Dermamist will add annualised sales of £108,000 and adds a further product to Alliance's growing dermatology portfolio.

Alliance is paying £260,000 in cash for the entire share capital of Caraderm, under a transaction in which staff will not be transferred to Alliance.

John Dawson, Alliance Pharma's Chief Executive, commented: 'This latest acquisition delivers a further product to our dermatology portfolio. We gained critical mass in dermatology earlier this year through the acquisition of the Hydromol range and we look forward to the continuing success of our skincare franchise.'

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

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