Trading Update

ALLIANCE PHARMA PLC

("Alliance" or the "Company")

Trading Update

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, has been notified by Sanofi Pasteur Canada, which manufactures the bladder cancer treatment ImmuCyst and licenses it to Alliance for distribution in the UK and Ireland, that Sanofi Pasteur has decided to temporarily suspend manufacturing of ImmuCyst to address certain production issues that have arisen. Sanofi Pasteur has advised that its preliminary estimate is to resume supply of ImmuCyst in late 2013. ImmuCyst currently generates around £2m gross margin per annum for Alliance and accordingly the Board of Alliance expects that the results for the year end 31 December 2012 could be adversely affected by approximately £1m. Alliance is exploring ways to mitigate the impact.

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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 50 pharmaceutical products and continues to explore opportunities to expand the range.

Alliance's products are prescribed in the treatment of a wide range of conditions and include products used in the treatment of dermatological conditions, in oncology, in childbirth, in the prevention of heart disease, in Parkinson's disease, in nutrition and in nasal infections. Alliance'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 joined the AIM market of the London Stock Exchange in December 2003 and trades under the symbol APH.