Placing to raise GBP2.5m

Alliance Pharma PLC
10 May 2006


For immediate release                                                10 May 2006

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

                         Placing to raise £2.5 million

Alliance Pharma plc (AIM: APH), a speciality pharmaceutical company, is pleased
to announce that it has conditionally placed 14,705,883 new ordinary shares of
1p each in the capital of the Company ('Ordinary Shares') at a price of 17p per
share, raising a total of £2.5 million (before expenses) for the Company.
Application has been made to AIM for the new shares to be admitted to trading,
which is expected to commence on 15 May 2006.

The proceeds of the placing will be used for general corporate purposes.

John Dawson, Alliance Pharma's Chief Executive, commented:

'I am delighted by the support of new and existing investors in this
fundraising, the proceeds of which will provide additional finance as the
Company moves closer to the regulatory filing of key pipeline products including
Posidorm for sleep disorders.'

The placing has been undertaken by Numis Securities Limited ('Numis') and is
conditional on the placing agreement between Numis and the Company becoming
unconditional and not being terminated on or before 15 May 2006 (or such later
date as Numis and the Company may agree, being not later than 30 May 2006).  The
new Ordinary Shares will rank pari passu in all respects with the existing
Ordinary Shares in issue.

For further information:

 Alliance Pharma plc                                    [phone]

 John Dawson, Chief Executive
 Maddy Scott, Finance Director
 www.alliancepharma.co.uk

 Buchanan Communications                                [phone]
 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