A.L. PHARMA REPORTS SECOND QUARTER EARNINGS.

FORT LEE, N.J., Aug. 2, 1995--(BUSINESS WIRE)--A.L. Pharma Inc. (NYSE:ALO) today reported that for its second quarter ended June 30, 1995 revenue was $123,817,000, an increase of 12% compared with $110,958,000 in 1994. Operating income increased 33% to $10,438,00 from $7,850,000 in 1994; and net income for the quarter was $3,054,000 versus $2,807,000 a year ago. Per share earnings on a fully diluted basis for the second quarter were $.14 in 1995 versus $.13 in 1994.

For the six months ended June 30, 1995, revenue was $249,897,000, an increase of 14% compared with $218,338,000 in 1994. Operating income increased 37% to $23,223,000 compared to $16,903,000 in the first half of 1994; and net income for the period was $6,979,000 versus $6,358,000 a year ago. Fully diluted per share earnings were $.32 versus $.29 in the same period of 1994.

On a fully comparable basis, per share earnings in 1995 increased 17% for the second quarter and 23% for the six months compared to 1994. Results for the first half of 1994 have been restated in a manner similar to a pooling of interests to reflect the October 3, 1994 combination of the human pharmaceutical and animal health businesses of Apothekernes Laboratorium A.S (A.L. Oslo) with the Company. The second quarter and first half 1994 restated results include the benefit of the earnings of A.L. Oslo, however, the restated results do not reflect the interest expense on both the cash consideration paid and expenses incurred in connection with the combination. Had this interest been included, restated earnings per share for 1994 would have been $.12 for the second quarter and $.26 for the first half. In evaluating actual 1995 second quarter results of $.14 and first half results of $.32 per share (which include interest for all combination related items), the Company believes that 1994 restated results, including the combination related interest or $.12 and $.26 per share, respectively, should be used for comparison. On this basis, earnings per share in 1995 increased 17% for the second quarter and 23% for the six months compared to 1994.

Commenting on the results, Einar W. Sissener, Chief Executive Officer of A.L. Pharma Inc. said, "The solid 37% improvement in operating income and 23% increase in earnings per share for the first half of 1995 reflects significant progress in our businesses because the results were achieved despite several external factors which negatively impacted our business including, an unusually mild flu season, weakness in the U.S. swine industry and a shifting of the vaccinating practices in salmon farming to the second half of the year. Considering the seasonality of certain of our businesses, and assuming a strong second half aquaculture market, along with anticipated receipt of several new product approvals in our U.S. Pharmaceuticals Division in the third quarter, we are optimistic about our earnings growth in the second half of 1995."

A.L. Pharma is a multinational pharmaceutical company developing, manufacturing and marketing specialty generic and proprietary human pharmaceuticals and animal health products. A.L. Pharma resulted from the combination of the human pharmaceu- tical and animal health businesses of Apothekernes Laboratorium A.S of Oslo, Norway with A.L. Laboratories, Inc. on October 3, 1994. -0-

                             A.L. PHARMA INC.
                    Consolidated Statement of Income
                    (In thousands, except per share data)
                              (Unaudited)

                                Three Months Ended     Six Months Ended
                                     June 30,             June 30,
                                 1995       1994(a)    1995      1994(a)

Total revenue                 $123,817    $110,958   $249,897   $218,338
  Cost of sales                 71,393      65,454    144,804    127,604
Gross profit                    52,424      45,504    105,093     90,734
   Selling, general and
     administrative expenses    41,986      37,654     81,870     73,831
Operating income                10,438       7,850     23,223     16,903
   Interest expense             (5,689)     (3,348)   (11,259)    (6,848)
   Other, net                      221          13       (581)       178
Income before provision
 for income taxes                4,970       4,515     11,383     10,233
   Provision for income taxes    1,916       1,708      4,404      3,875
Net income                    $  3,054    $  2,807   $  6,979   $  6,358
Average common shares
 outstanding:
  Primary                       21,625      21,561     21,616     21,554
  Fully diluted                 21,746      21,592     21,721     21,590
Earnings per common share:
  Primary                     $   .14      $   .13    $   .32    $   .29
  Fully diluted               $   .14      $   .13    $   .32    $   .29
Dividends per common share    $  .045      $  .045    $   .09    $   .09
(a) Restated to reflect combination with A.L.  Oslo accounted for as
a pooling of interests.

                               A.L. PHARMA INC.
                              Financial Position
                                (In thousands)

                                 June 30,         December 31,
                                  1995               1994
                               (unaudited)         (audited)

Current assets                  $244,333            $250,499
Non-current assets               349,872             341,819
     Total assets               $594,205            $592,318
Current liabilities             $136,403            $154,650
Long-term debt                   222,665             220,036
Deferred taxes and other
  liabilities                     37,984              36,344
Stockholders' equity             197,153             181,288
 Total liabilities and
       stockholders' equity     $594,205            $592,318

CONTACT: A.L. Pharma Inc.

Iris Daniels, 201/947-7774