Distribution Agreement

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