LA JOLLA, Calif., June 2 /PRNewswire-FirstCall/ -- Alliance
Pharmaceutical Corp. (OTC Bulletin Board: ALLP) announced today the results
of the vote of its shareholders on the two proposals put to the
shareholders at its Annual Meeting of Shareholders held Friday, May 30,
2008.

    The first proposal related to the re-election of each of the six
sitting directors of the Company to serve an additional term of one year or
until their successors are duly elected and qualified. All six directors
were re-elected by the requisite vote of the shareholders.

    The second proposal related to the approval of a reverse stock split to
be effected at a ratio of ten shares to one share of our common stock. As
disclosed in the Company's proxy statement related to the Annual Meeting,
the Company has determined that in order to obtain additional financing to
further the development of Oxygent(TM), the Company's outstanding
indebtedness must be converted into common stock. The holders of
substantially all of this outstanding indebtedness have agreed to convert
such debt into common stock at a conversion price of $0.17 per share. The
material conditions to such conversion are: (i) that the company effect a
reverse stock split in a ratio of ten shares of common stock to one share
of common stock in order to allow for enough authorized but unissued common
stock to enable such conversion; and (ii) that the Company raise at least
$3 million in new financing from investors.

    The shareholders of the Company approved the reverse stock split by the
requisite vote. The Board of Directors of the Company is now authorized to
set an effective date for the reverse stock split, and such reverse stock
split will become effective on such date and at the time the Company files
an amendment to its Articles of Incorporation effecting such reverse stock
split. The Company expects that its Board of Directors will set the
effective date of the reverse stock split in the near future.

    Oxygent Development Update

    Alliance has been transferring the manufacturing technology to enable
its partner Beijing Double-Crane Pharmaceutical Co., Ltd. (Double-Crane) to
manufacture Oxygent in China. To date, Double-Crane has built out the
manufacturing facility and has ordered the key equipment, such as tanks,
process mixers, pumps, etc. It has also produced the Active Pharmaceutical
Ingredient (API), perfluorooctylbromide, in pilot scale quantities.
Following the manufacture of clinical supplies in China, Double-Crane plans
to submit an IND to the SFDA, which is anticipated to be completed in 2008.
Alliance has provided Double-Crane Phase 1 and Phase 2 with clinical trial
protocols for translation and eventual submission.

    About Alliance Pharmaceutical Corp.

    Alliance is a development-stage pharmaceutical company that is
currently focused on developing its lead product, Oxygent, which is based
on its proprietary perfluorochemical 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 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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