Alliance Pharmaceutical Corp. Announces Plans for Oxygent Clinical Development in Europe.

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SAN DIEGO--(BW HealthWire)--March 26, 2002

Alliance Pharmaceutical Corp. (Nasdaq:ALLP)(Nasdaq:ALLPD) announced today that representatives from Alliance and Baxter Healthcare Corp. have met with selected European regulatory authorities to review the clinical development plans for Oxygent(TM) (perflubron emulsion), an intravascular oxygen carrier intended to avoid the need for donor blood in elective surgery.

Based on positive interactions at these meetings, the companies are now planning a pivotal European Phase 3 study involving general surgery patients undergoing various procedures. Oxygent is being developed by Alliance in the United States, Canada, and Europe in conjunction with Baxter.

The proposed study protocol was developed utilizing data from a successful international Phase 3 study with 492 surgical patients, which demonstrated that Oxygent and acute normovolemic hemodilution treatment provided a statistically significant reduction and avoidance of donor blood usage. The new pivotal study would focus on the use of Oxygent for patients undergoing various general surgery procedures that are expected to result in moderate blood loss that usually requires transfusion of donor blood. Patients will be randomized at the time a blood transfusion is deemed necessary according to a defined transfusion trigger. The acute normovolemic hemodilution technique will not be used in this study; instead, treatment patients will receive Oxygent, while control patients will receive blood. The primary endpoint of the study will be the avoidance of donor blood transfusions.

"We are looking forward to completing the development of Oxygent in Europe," said Duane J. Roth, chairman and CEO of Alliance. "The results from the previous general surgery study were extremely helpful in enabling us to design a protocol in which Oxygent is used in the same manner as blood, and is administered when the patient needs a transfusion during the surgical procedure."

As announced previously, the companies also intend to resume clinical development of Oxygent in the U.S. Active discussions are currently ongoing with the U.S. Food and Drug Administration (FDA) regarding the information package submitted to the agency in January. Details about the development plan for Oxygent in the U.S. will be finalized and communicated after the appropriate FDA discussions have been completed.

Oxygent is a sterile perfluorochemical emulsion that does not contain human or animal blood components. It is universally compatible with all blood types, has a shelf-life of approximately two years, and is manufactured in a large-scale facility using commercially available raw materials.

Alliance Pharmaceutical Corp. is developing therapeutic and diagnostic products based on its perfluorochemical and surfactant technologies. Alliance's products are intended primarily for use during acute care situations, including surgical, cardiology, and respiratory applications. Imavist(TM), an ultrasound contrast agent awaiting final FDA approval, is being developed jointly by Alliance and Schering AG, Germany, and will be marketed in the U.S. in partnership with Cardinal Health Inc. Additional information about the company is available on Alliance's Web site at www.allp.com.

Except for historical information, the matters set forth in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth herein, including the availability of funding for development, the uncertainties associated with the conduct of preclinical or clinical studies and the timing or ability to investigate scientific data. Alliance refers you to cautionary information contained in documents the company files with the Securities and Exchange Commission from time to time, including the last Form 10-K and Form 10-Q, and those risk factors set forth in the most recent registration statement on Form S-3 (File No. 333-72844). Alliance is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.