Half Year Trading Update

Alliance Pharma PLC
11 July 2007


For immediate release                                         11 July 2007



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

                            Half-year Trading Update

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces
a pre-close trading update ahead of the announcement of its interim results for
the six months ended 30 June 2007.

As announced in the Company's AGM statement on 16 May 2007, temporary supply
shortfalls, which are in the process of being resolved, have impacted sales with
the result that half year sales are expected to be in the region of £7.8
million, the same as in the first half last year. Without the supply shortfalls
it is estimated that sales would have been around £1 million higher.

As a result the Company expects to report a loss for the half year in the region
of £0.7 million before exceptional reorganisation costs of £0.2 million arising
from the action taken to improve profitability which was announced on 13 June
2007.

This action, which will produce annual cost savings of more than £1 million,
marks a strategic shift in which the Company will put more emphasis on its
trading portfolio. This shift will result in improved profitability and cash
generation. Benefits from the action taken will start to flow in the second half
to return the Company to profit in the full year.

The Company's interim results will be announced on 12 September 2007.

For further information:

Alliance Pharma plc                                   + 44 (0) 1249 466966
John Dawson, Chief Executive

Richard Wright, Finance Director
www.alliancepharma.co.uk

Numis Securities                                     + 44 (0) 20 7260 1000
David Poutney
Michael Meade

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 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
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