Release issued 22nd May 2006

Alliance Pharma PLC - Distribution Agreement

RNS Number:3126D

Alliance Pharma PLC

22 May 2006

For Immediate Release 22 May 2006

ALLIANCE PHARMA PLC

('Alliance Pharma' or 'the Company')

Leading distributor signed in Italy for PeriostatTM

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, is pleased to announce that it has entered into a distribution agreement with Ideco Linea Odontoiatrica, a leading specialist dental company, to register, distribute and market Periostat in Italy.

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

Ideco is a specialist dental company which markets implants and oral hygiene products to dentists, pharmacies and drugstores, and is highly experienced in the dental market in Italy.

Statistics indicate that 48 per cent of the Italian population over 35 years old have moderate to severe periodontitis, representing a potential market of approximately 14 million people. Periostat will be the only enzyme suppression product on the market in Italy to treat periodontitis.

Alliance possesses the marketing authorisation for Periostat in Italy and a submission has been made to enable Ideco to distribute the product. The launch in Italy is expected in Q4 2006.

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

'I am extremely pleased with addition of Italy to our distribution network for Periostat. Periostat is a major growth opportunity for Alliance Pharma and this agreement with Ideco Linea increases our international reach into a potentially very significant market. We are excited to have the marketing authorisation in place, and are on track to launch Periostat in Italy in the final quarter of 2006.'

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.

About Periostat

Periostat is the first and only approved oral pharmaceutical product for the adjunctive treatment of adult periodontal disease (periodontitis) by the suppression of those enzymes that destroy periodontal support tissues. Periostat is included in the Secretary of State for Health's list for dental prescribing and is listed on the UK's Dental Practitioners' Formulary. Periodontitis is estimated to affect 11 per cent of the adult population in the UK.

Alliance Pharma acquired the rights to Periostat in November 2004 from CollaGenex International Ltd, part of CollaGenex Pharmaceuticals Inc (Nasdaq:

CGPI), for the territories of the enlarged European Union, Switzerland, Israel, Australia, New Zealand and South Africa.

This information is provided by RNS

The company news service from the London Stock Exchange END

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