Alliance Pharma Regulatory News (APH)

ALLIANCE PHARMA PLC

("Alliance" or the "Company")

Compulsory Conversion of CULS

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces that, further to the announcement made on 28 October 2013 in which the Company stated that £1,757,025 nominal value of Convertible Unsecured Loan Stock ("CULS") remained in issue, the Company is now entitled to give all remaining holders of CULS notice of its intention compulsorily to convert all the outstanding CULS.

Accordingly, Alliance announces that it is today posting a notice to the remaining holders of CULS regarding the compulsory conversion of their holdings of CULS into new ordinary shares of 1p each of the Company ("Ordinary Shares") ranking pari passu with the existing issued Ordinary Shares. Holders of CULS may elect to have their CULS redeemed at par instead of being converted into Ordinary Shares.

The conversion rate of the CULS is £4.7619 nominal of Ordinary Shares per £100 nominal of CULS. Assuming full conversion of all the remaining CULS, this will result in the issue of 8,366,777 new Ordinary Shares.

The compulsory conversion of the outstanding CULS will take effect on 31 December 2013.

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About Alliance

Alliance, founded in 1998, 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 products and owns or licenses the rights to more than 60 pharmaceutical products and continues to explore opportunities to expand the range.

Alliance joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.