SAN DIEGO, April 2 /PRNewswire-FirstCall/ -- Alliance (OTC Bulletin
Board: ALLP) today announced that it held two teleconferences with the
holders of its outstanding Senior Convertible Promissory Notes ("Senior
Notes"). The first teleconference took place on March 30, 2007. This
teleconference was repeated on April 2, 2007.
    In connection with the teleconferences, Alliance requested that each
holder of a Senior Note execute an amendment to extend the maturity date of
the Senior Note from April 1, 2007 to June 30, 2008. This amendment must be
approved by substantially all of the Senior Note holders before it becomes
effective. If the amendment is approved, Alliance intends to seek
additional financing to fund its continuing operations through June 2008.
Under the current plan, Alliance has enough funds to operate to the end of
its fiscal year, June 30, 2007.
    In December 2006, Alliance received approval from the French Competent
Authority (regulatory agency) to conduct the Phase 2b clinical trial for
Oxygent(TM) to prevent post-op ileus resulting from hypoxia during major
surgery. As previously reported, Alliance subsequently submitted a protocol
revision to the French authorities that modified the study to one that
incorporated a dose-escalation protocol. This modification allows for the
safety and efficacy to be evaluated at three dose levels. Approval of the
modification from the French authorities is expected in April 2007.
Alliance updated the Senior Note holders that it has sufficient funds to
initiate the study, but not to complete it.
    Alliance also informed the Senior Note holders of its intent to file
two additional patents, one formulation patent and one method of use
patent, related to the Oxygent technology.
    About Alliance Pharmaceutical Corp.
    Alliance Pharmaceutical Corp. is a development-stage pharmaceutical
company that is currently focused on developing its lead product, Oxygent,
which is based on its proprietary perfluorochemical (PFC) technology.
Oxygent is being developed as an intravascular oxygen carrier designed to
augment oxygen delivery in surgical patients.
    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. Alliance has not had any substantive discussions to
date with any potential financing source and does not know if such
financing will be available to it on terms acceptable to it, or at all.
Such financing may come in the form of preferred stock, having rights,
preferences and privileges superior to our outstanding common stock or
additional debt, which may have to be secured by some or all of the assets
of Alliance. Alliance refers you to cautionary information contained in
documents Alliance files with the Securities and Exchange Commission from
time to time, including the last Form 10-KSB and Form 10-QSB. 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.

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