Allergan Specialty Thitors and Health/Medical Writers.

This press release may contain certain forward-looking statements and actual results could differ materially from those described as a result of factors, including, but not limited to, the following. There can be no assurance: (a) that the Company's products will be successfully developed, that regulatory approvals will be granted, or patient and physician acceptance of these products will be achieved; (b) that if a need for additional financing occurs, such financing will be available to the Company when required or that such financing would be available under favorable terms; (c) that milestone payments or royalties pursuant to the Collaboration Agreement, by and between Allergan and the Parke-Davis Pharmaceutical Research Division of Warner-Lambert Company dated July, 1998, will be earned such that ASTI will be entitled to a portion of such payments; or (d) that Allergan, Inc. will exercise the purchasing option covering the ASTI Callable Common Stock when the last date to exercise the option is triggered or before.

In addition, patent positions of pharmaceutical and biotechnology firms, including the Company, are uncertain and involve complex legal and factual questions for which some important legal principles are largely unresolved. These forward-looking statements represent the Company's judgment only as of the date of this press release. Actual results could differ materially from expectations reflected in this release. As a result, the reader is cautioned not to rely on these forward-looking statements. The Company disclaims any intent or obligation to update these forward-looking statements.

Additional information concerning the factors affecting the Company's business can be found under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 1998. This filing is available publicly and upon request from the Company's Investor Relations Department: 714/246-6301. -0-

                 ALLERGAN SPECIALTY THERAPEUTICS, INC.
                     (a development stage company)
                   (In thousands, except share data)

                  Condensed Statements of Operations
     For the quarters and six months ended June 30, 1999 and 1998
           and the period from inception (November 12, 1997)
                           to June 30, 1999
                              (unaudited)
                                                            Inception
                                                               to
            Quarter Ended June 30, Six Months Ended June 30, June 30,
              1999         1998      1999         1998        1999

Revenues     $2,342       $2,791    $4,492       $3,508     $13,535

Costs and expenses:

 Research &
 development 11,957        6,516    22,646       16,128      58,532
 Technology
 fees         1,375        1,375     2,750        3,770       9,270
 General and
 administrative 327          115       611          130       1,544

 Total costs and
 expenses    13,659        8,006    26,007       20,028      69,346

Loss before income
taxes       (11,317)      (5,215)  (21,515)     (16,520)    (55,811)
Provision for
taxes           874          922     1,475          922       3,987

Net loss   $(12,191)     $(6,137) $(22,990)    $(17,442)   $(59,798)

Basic and diluted
loss per
share      $  (3.72)     $ (1.87) $  (7.02)    $  (5.33)   $ (18.27)

Basic and diluted
shares out-
standing  3,273,690    3,273,690  3,273,690   3,273,690   3,273,690


                       Condensed Balance Sheets
                              (unaudited)

                              June 30,            December 31,
                                1999                 1998
Assets

Cash and equivalents           $   65               $   --
Investments                   132,888              158,667
Prepaid technology fees         5,323                4,723
Other assets                    2,228                1,747

Total assets                 $140,504             $165,137

Liabilities and stockholders' equity

Payable to Allergan, Inc.      $4,138               $4,509

Accounts payable and accrued
liabilities                        26                  295

Total liabilities               4,164                4,804

Stockholders' equity          136,340              160,333

Total liabilities and
stockholders' equity         $140,504             $165,137