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ALLIANCE PHARMA PLC

("Alliance" or the "Group")

Alliance Pharma plc (AIM: APH), the speciality pharmaceutical company, announces its pre-close trading update ahead of its preliminary results for the year ended 31 December 2013.

Turnover for 2013 is expected to be £45.5m (2012: £44.9m) and pre-tax profits are expected to be in line with current market expectations.

Sales of the Hydromol™ dermatology range grew from £4.7m in 2012 to £5.3m in 2013. The Opus Group stoma care business made a substantial contribution to sales of £3.9m. Sales of Alliance's cyclical toxicology product peaked in the first half of 2013. The product now has competition from a number of new market entrants such that we expect markedly reduced sales in the next procurement cycle due in 2015.

International sales of Syntometrine™, the obstetric drug acquired in June 2013, were in line with expectations at £1.2m. Initial sales of the lip balm Lypsyl™, acquired in December 2013, were also recorded during the period.

Production volumes for Ashton & Parsons Infants' Powders™ have been constrained since acquisition in 2011 owing to inefficient packaging machinery. Sales in 2013 were £0.4m. New machinery has just been commissioned, allowing production volumes to be substantially increased.

Separately today Alliance also announces the acquisition of the thyroid product Irenat™ in Germany from subsidiaries of Bayer AG ("Bayer"). In the 12 months to October 2013, total sales of Irenat by Bayer were €0.8m and the gross margin generated was €0.5m.

Net bank debt at 31 December 2013 was £25.5m (2012: £21.8m), after £10m was invested in acquisitions during the year. There was £nil of 8% Convertible Unsecured Loan Stock outstanding at 31 December 2013 (2012: £4.2m) as all the remaining stock was converted in December 2013. Alliance currently has over £20m of committed, unutilised acquisition facility available to fund acquisition opportunities.

Alliance's preliminary results for 2013 are expected to be announced on 26 March 2014.

FOR FURTHER INFORMATION:

Alliance Pharma plc + 44 (0)1249 466966
Peter Butterfield, Chief Executive Officer
Andrew Franklin, Chief Financial Officer

Buchanan + 44 (0)20 7466 5000
Mark Court / Sophie Wills / Hannah Ratcliff

Numis Securities Limited + 44 (0)20 7260 1000
Nominated Adviser: Michael Meade / Freddie Barnfield
Corporate Broking: James Black

Investec Bank plc + 44 (0)20 7597 5970
Corporate Finance: Daniel Adams / Ed Thomas
Corporate Broking: Patrick Robb / Tejas Padalkar

Notes to editors:

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.