Acquisition

Alliance Pharma PLC
10 February 2004


10 February 2004



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


            ALLIANCE PHARMA ACQUIRES DERMAPHARM LTD AND FOUR BRANDS


Alliance Pharma plc, the emerging speciality pharmaceutical company, today
announced that it has acquired Dermapharm Ltd together with four dermatology
brands for a total cash consideration of £875,000, wholly funded by bank debt
from Bank of Scotland.  Dermapharm Ltd is a privately owned UK pharmaceuticals
company, run by Mr Tim Lovett and specialising in dermatological products.

The deal gives Alliance the marketing, distribution and IP rights to the four
brands but excludes the infrastructure, other brands, other assets and staff of
Dermapharm Ltd, which will be divested into a new company called Dermapharm
Skincare Ltd.  In the 10 month period to October 2003, Dermapharm Ltd had sales
of £321,156 and achieved breakeven profits.  The net asset value of the assets
being acquired by Alliance is £124,400.

The four brands are 'Occlusal', used in primary care as a treatment for warts
and 'Meted', 'Pentrax' and 'Acnisal' which are specialist dermatology products
used in the treatment of scalp conditions and acne.  In the year to December
2003, the four brands had a turnover of £360,000 with a historical growth rate
over 2002 of 13.3 per cent per annum.  They will be integrated into Alliance's
existing range, bringing the total number of branded pharmaceutical products in
its portfolio to 27.  Mr Tim Lovett has agreed to act as a consultant to
Alliance for a period of one year in order to assist with the ongoing
development of the brands.

John Dawson, CEO of Alliance Pharma commented:

'These are good brands with excellent growth potential and their transfer to
Alliance provides them with greater marketing coverage.  The brands add critical
mass to our existing portfolio of three specialist dermatology products and we
expect further activity in the dermatology arena resulting from our recently
signed, in-licensing agreement with Barrier Therapeutics Inc, which specialises
in dermatology R&D.'


                                    - ends -

For further information please contact:

Alliance Pharma plc
John Dawson
CEO
01249 466966

Beattie Financial
James Chandler/Mike Wort/John Moriarty
020 7398 3300



About Alliance Pharma

Alliance Pharma, founded in 1996, is an AIM listed emerging speciality
pharmaceutical company based in Chippenham, Wiltshire.  The company has a strong
track record of acquiring the rights to established niche brands and owns, or
shares, the rights to 27 branded pharmaceutical products and is currently
exploring several opportunities to expand the range.  In November 2003 the
company acquired Peerless Technology Group Plc constituting a reverse takeover
under the AIM rules.

Alliance'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 nasal infections, in the treatment of dermatological
conditions and in childbirth.  Alliance's sales are mainly prescription driven.
They are distributed to hospitals directly and to pharmaceutical wholesalers who
service both hospital and retail pharmacies with their prescription
requirements.




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