Cost Control Programme

Alliance Pharma PLC 13 June 2007 For immediate release 13 June 2007 ALLIANCE PHARMA PLC ('Alliance' or 'the Company') Further Progress in Improving Profitability Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company, is pleased to announce that, further to the statement made at the time of the Company's Annual General Meeting on 16 May 2007, the Company has taken further action to improve profitability through a programme that will result in annual cost savings of more than £1 million from 2008 onwards. This cost savings programme is focussed on the Company's overheads and includes 11 redundancies covering all operations. The programme is designed to produce costs savings of more than £1 million in the year to 31 December 2008 onwards. Whilst the decision to implement the cost savings programme follows short-term revenue losses from previously announced, temporary supply shortfalls, the main purpose of the programme is to drive the Company's profitability. John Dawson, the Company's Chief Executive, said: 'This cost-saving programme will produce a slimmer, stronger company with an overhead at a level that will both drive profitability and allow the Company to continue to exploit its markets. From next year, the programme will release cost savings of more than £1 million a year, reinforcing the Company's earlier actions to improve profitability.' For further information: Alliance Pharma plc + 44 (0) 1249 466966 John Dawson, Chief Executive www.alliancepharma.co.uk Buchanan Communications + 44 (0) 20 7466 5000 Mark Court/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 34 branded pharmaceutical products. 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 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
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