Trading Statement

Alliance Pharma PLC
16 March 2005

For immediate release:  16th March 2005



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


                            PRE-CLOSE TRADING UPDATE


Alliance Pharma plc, the emerging speciality pharmaceutical company, is pleased
to provide a trading update prior to entering its closed period for the full
year to 28 February 2005.


Profits are anticipated to be within the range of analysts' expectations.  Sales
for the year ending 28 February 2005 are expected to be in the region of £11.8
million, up from £10.4 million last year.


Trading performance is showing sales growth of 13%, over the same period in the
previous financial year.  Growth on a like-for-like basis was 7%, with a further
6% growth being achieved through acquisitions.


The company made two acquisitions in November 2004: Forceval, a prescription
multivitamin and mineral supplement that is licensed and reimbursed on the NHS
in the UK and sold to various other overseas markets via distributors, and
Periostat, a pharmaceutical treatment for periodontitis, for the UK and all the
other countries in the European Union as well as Switzerland, Israel, South
Africa, Australia and New Zealand.


In the four months since the acquisitions of Forceval and Periostat, the Company
is pleased to announce that sales of both products have been in line with
expectations.  Since acquisition, Alliance Pharma has strengthened the
relationships with the international distributors and the order book for
international sales going forward is in line with its expectations.  To drive
Forceval's international expansion, the Company is looking forward to announcing
the appointment of a Head of the International Division within the next few
weeks.  Similarly, to start to unlock the potential within Periostat, the
appointment of the Head of the Dental Division will be announced shortly


The registration trial programme for Alliance's development drug,  misoprostol
for the induction of labour (APL202), which commenced in January, is continuing
according to plan.  Approvals are expected soon to permit the trials programme
for Melatonin for sleep disorders (APL 510) to commence.


John Dawson, CEO of Alliance Pharma, commented:


'2004 has been another important year for Alliance.  We have continued our
growth and further strengthened our portfolio.  Periostat, in particular, has
tremendous growth potential.  Good progress has also been made on our
development projects, adding greatly to our mid-term prospects'.


Preliminary results for the 12 month period to 28 February 2005 will be
announced on Thursday 12th May 2005.


                                    - ends -


For further information:



Alliance Pharma plc
John Dawson, CEO
01249 466966


Beattie Financial
John Moriarty
020 7398 3300






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