Loan Note Payment

Alliance Pharma PLC
20 August 2004

20 August 2004

                         ALLIANCE PHARMA PLC (AIM: APH)

                         ('Alliance' or 'The Company')


An interest payment in respect of the Company's 8% Convertible Unsecured
Subordinated Loan Stock 2013 for the 6 months to 31 August 2004 will be paid on
31 August 2004 to holders on the register on 31 August 2004 .The amount to be
paid for this interest payment and all future payments will be £4 gross for
every £100 in principal amount of loan stock. All future dates will be as
detailed in the table below.

Pursuant to Condition 5(A) of the Trust Deed, each Stockholder is entitled to
convert his stock at anytime during the period 22 December 2003 to 30 November
2013

An announcement will be made in the event of any change to the scheduled
timetable.

Interest Payment Timetable

6 month period to be         Record date               Payment date
  paid in arrears

     31-Aug-04                31-Aug-04                  31-Aug-04
     28-Feb-05                28-Feb-05                  28-Feb-05
     31-Aug-05                31-Aug-05                  31-Aug-05
     28-Feb-06                28-Feb-06                  28-Feb-06
     31-Aug-06                31-Aug-06                  31-Aug-06
     28-Feb-07                28-Feb-07                  28-Feb-07
     31-Aug-07                31-Aug-07                  31-Aug-07
     28-Feb-08                28-Feb-08                  28-Feb-08
     31-Aug-08                31-Aug-08                  31-Aug-08
     28-Feb-09                28-Feb-09                  28-Feb-09
     31-Aug-09                31-Aug-09                  31-Aug-09
     28-Feb-10                28-Feb-10                  28-Feb-10
     31-Aug-10                31-Aug-10                  31-Aug-10
     28-Feb-11                28-Feb-11                  28-Feb-11
     31-Aug-11                31-Aug-11                  31-Aug-11
     28-Feb-12                28-Feb-12                  28-Feb-12
     31-Aug-12                31-Aug-12                  31-Aug-12
     28-Feb-13                28-Feb-13                  28-Feb-13
     31-Aug-13                31-Aug-13                  31-Aug-13


                                    - ends -


For further information contact:

John Dawson/Maddy Scott
Alliance Pharma PLC
01249 466966


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