Trading Update

Alliance Pharma PLC
09 January 2008



For immediate release                                             9 January 2008


                              ALLIANCE PHARMA PLC

                      ('Alliance Pharma' or 'the Company')


                            Pre-close Trading Update


Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, is
pleased to announce that trading in the year to 31 December 2007 has been in
line with market expectations. As expected, sales have strengthened considerably
in the second half, reflecting in part the progress made in resolving the supply
chain issues that impacted the first half. Turnover in the second half of 2007
was £10.4m, up £2.6m on the first half. Turnover for the full year to 31
December 2007 was £18.2m, an increase of 6% on the previous year.


Alliance Pharma continues to search for a partner with whom to take forward the
development of Posidorm, the Company's melatonin product for sleep disorders.
Discussions continue with a number of potential partners but in the absence of
confirmed funding to progress the development the Company is preparing to
recognise an impairment to Posidorm's carrying value, which will result in an
exceptional non-cash charge of approximately £3.4m. Alliance Pharma continues to
believe that Posidorm has considerable potential and the Company will continue
to search vigorously for a route to unlock that potential.


Before the Posidorm impairment, Alliance Pharma expects to report a modest
profit for the year in line with expectations and demonstrating a significant
turnaround from the £0.9m loss reported for the first half of 2007.


Alliance Pharma's preliminary results for the year to 31 December 2007 will be
announced on 14 March 2008.





For further information:
Alliance Pharma plc                                   + 44 (0) 1249 466966

John Dawson, Chief Executive
Richard Wright, Finance Director
www.alliancepharma.co.uk

Buchanan Communications                              + 44 (0) 20 7466 5000

Mark Court / Rebecca Skye Dietrich

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



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 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 the prevention of heart disease, in
Parkinson's disease, in nutrition, in nasal infections, in the treatment of
dermatological conditions, in childbirth and in the treatment of periodontitis
(a serious gum disease). 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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange