Dermatology Acquisition

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