Distribution Agreement

Alliance Pharma PLC
29 July 2005


For Immediate Release                                              29 July 2005

                              ALLIANCE PHARMA PLC
                         ('Alliance' or 'the Company')

             Leading distributor signed in Turkey for Periostat(R)

Alliance Pharma plc (AIM: APH), the emerging speciality pharmaceutical company,
is pleased to announce that it has entered into a distribution agreement with
Vem IIac to register, distribute and market Periostat in Turkey. Simultaneously
to this agreement, Alliance has also extended its agreement with CollaGenex to
add Turkey to its list of available territories.

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

Vem IIac, based in Ankara, is a specialist dental pharmaceutical company and is
highly experienced in the dental market in Turkey, where it currently
distributes and sells a range of dental anaesthetics and consumables to more
than 20,000 dental clinics.

Statistics indicate that 22 per cent of the Turkish population has advanced
periodontitis, representing a potential market of approximately nine million
people. Periostat will be the only enzyme suppression product on the market in
Turkey to treat periodontitis.

Alliance and Vem IIac have compiled and submitted the dossier to secure the
marketing authorisation for Periostat in Turkey. This registration process is
expected to take between eighteen months and two years.

Commenting on the news, John Dawson, Alliance Pharma's Chief Executive, said:
'I am extremely delighted with these two agreements. Periostat is a major growth
opportunity for Alliance Pharma and this agreement with Vem IIac increases our
international reach into a well developed dental market that represents a
significant commercial opportunity. It has also produced a good understanding
between us and CollaGenex on the way forward to exploit markets that were
outside our original agreement.'

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.



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