IMCOR, Alliance, Molecular Biosystems, and GE Healthcare enter into cross-licensing agreement for ultrasound contrast patents.

IMCOR Pharmaceutical Co. (San Diego, CA), Alliance Pharmaceutical Corppration (San Diego, CA) and its wholly owned subsidiary, Molecular Biosystems, Inc., have concluded an agreement with GE Healthcare Ltd., resolving disputed patent claims in the case captioned IMCOR Pharmaceutical Co, Alliance Pharmaceutical Corp. and Molecular Biosystems, Inc. v. Amersham Health, Inc., Amersham Health AS and Amersham plc., Civil Action No. 03-2853 (SRC), filed in the United States District Court, District of New Jersey.

Under the terms of the settlement, all parties granted each other a non-exclusive, royalty-free cross-license with the right to sub-license their respective ultrasound contrast agents. The parties will have the right to further develop and commercialize their respective ultrasound contrast imaging agents without risk of infringing the other company's patent rights. In addition, GE Healthcare will pay $1 million to IMCOR and $200,000 to Alliance for a fully paid-up license. Concurrent with the license agreement, IMCOR and Alliance reached an agreement freeing each party of its continuing obligations under the original Imagent (perflexane lipid microspheres) Asset Purchase Agreement and providing for the allocation between the parties of the proceeds of any future transaction involving the disposition of Imagent.

"We are pleased to complete this settlement agreement with GE Healthcare, a highly respected company both developing and marketing imaging products worldwide," said Jack DeFranco, Senior Vice President and Chief Operating Officer of IMCOR. "This agreement is important because it allows IMCOR to consider various alternatives for its Imagent asset, including, seeking worldwide licensing partners for the continued development and marketing of Imagent, engaging in a sale of some or all of this asset, or engaging in a merger or other material transaction."

IMCOR is a specialty pharmaceutical company developing and marketing innovative imaging products including Imagent, its current ultrasound contrast agent.

Alliance, founded in 1989, is a development-stage pharmaceutical company that is currently focused on developing its lead product, Oxygent. Alliance is currently the only company that has advanced a synthetic PFC emulsion-based oxygen therapeutic into late-stage multi-center international clinical trials in both Europe and North America. Alliance is developing Oxygent as an intravascular oxygen therapeutic, based on its proprietary PFC and surfactant technologies.

Alliance Pharmaceutical Corporation

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IMCOR Pharmaceutical Co.

www.imcorpharma.com