Harris & Harris Group Notes Alliance Pharmaceutical Submission of Imagent Ultrasound Contrast Agent for FDA Approval.

NEW YORK--(BUSINESS WIRE)--October 13, 1999--

Alliance Pharmaceutical Corp. (NASDAQ: ALLP) announced today that a New Drug Application (NDA) has been submitted to the Food and Drug Administration (FDA) for approval of Imagent(R), an ultrasound contrast agent. In addition to Imagent(R), Alliance's principal products are Oxygent(TM), an intravascular oxygen carrier ("blood substitute") and Liquivent(R), an intrapulmonary "liquid ventilation" agent for treatment of acute lung injury and acute respiratory distress syndrome.

On May 20, 1999, Harris & Harris Group purchased from Alliance Pharmaceutical in a $1.2 million private placement a 6% debenture convertible into 600,000 shares of Alliance Pharmaceutical common stock and a warrant to purchase an additional 200,000 shares of Alliance Pharmaceutical common stock at $2.45 per share. On June 30, 1999, the most recent date on which Harris & Harris Group valued its holdings, it valued this investment at $1,526,000.

Alliance Pharmaceutical was founded by Harris & Harris Group and was Harris & Harris Group's first private equity investment. At the time of the May 1999 $1.2 million investment, Harris & Harris Group had no current ownership interest in Alliance Pharmaceutical.

Harris & Harris Group is a Business Development Company with 9,240,831 common shares issued and outstanding.

Detailed information about Harris & Harris Group and its holdings can be found on its web site at http://www.hhgp.com.

This press release may contain statements of a forward-looking nature relating to future events. Shareholders are cautioned that such statements are predictions and that actual events or results may differ significantly.