OXYGENT™ IN KOREA

San Diego, CA; April 19, 2004 --- Alliance Pharmaceutical Corp. (OTCBB: ALLP.OB), through its
wholly owned subsidiary PFC Therapeutics, LLC, and IL YANG Pharmaceutical Co., Ltd (“IL YANG”)
today announced the signing of a Licensing, Development and Marketing Agreement ("Agreement")
between PFC Therapeutics and IL YANG, granting IL YANG exclusive rights to distribute and
commercialize Oxygent™ in South Korea. IL YANG is one of the top Korean pharmaceutical R&D and
marketing companies. Oxygent (perflubron emulsion) is a patent-protected, stable, and concentrated
perfluorochemical (PFC)-based synthetic oxygen therapeutic developed by Alliance, which has been
evaluated in late-stage clinical studies for avoidance of red blood cell transfusions during surgery.

Under terms of the Agreement, IL YANG will have the exclusive right to promote, market, distribute and
sell Oxygent throughout South Korea. PFC Therapeutics will be responsible for commercial supply of
Oxygent, which IL YANG will purchase from PFC, and PFC will receive a royalty from IL YANG on
sales of Oxygent following commercialization in South Korea. IL YANG will also make certain future
payments to PFC on the completion of various regulatory milestones for Oxygent development in Europe
and the United States. COSMO USA, Inc. a medical industry consulting company served an integral role
in bringing the two companies together for this unique partnership.

PFC Therapeutics retains exclusive rights to Oxygent in the U.S. and for the rest of the world (excluding
South Korea and Europe). For Europe, Alliance announced on April 5, 2004 the signing of a
collaboration agreement between PFC Therapeutics and Nycomed, a leading European pharmaceutical
company based in Denmark, for Nycomed to assume responsibility for the remaining clinical and
regulatory development and future marketing to commercialize Oxygent throughout a broad European
territory (and a potential option to acquire rights for China).

“We are very pleased to have IL YANG as our exclusive licensee for future commercialization of
Oxygent in South Korea, which represents a significant and important market in Asia,” commented Duane
J. Roth, Chairman and CEO of Alliance. “IL YANG represents the top pharmaceutical company in
Korea, making them an ideal partner for Alliance and for expanding our international efforts to develop
and commercialize Oxygent.”

"We believe that Oxygent represents a unique product that is ideally suited to potentially address the
increasing demand for alternatives to allogeneic (donor) blood transfusion in surgical patients," said Tae
Sook Yoo, CEO of IL YANG Pharmaceutical Co. “Once the remaining clinical development is
completed, we intend to focus IL YANG’s corporate assets, excellent reputation and proven marketing
skills to ensure successful commercialization of Oxygent in South Korea, since this product could become
a valuable alternative to perioperative red cell transfusion at a time when the safety and limited
availability of donor blood is an important medical issue for both physicians and their patients.”
Alliance Pharmaceutical Corp, 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. Through its wholly owned subsidiary,
PFC Therapeutics, Alliance is developing Oxygent as a temporary red blood cell substitute, based on its
proprietary PFC and surfactant technologies. The goal of the remaining clinical development program
will be to seek marketing approvals for an indication to use Oxygent during surgery when tissues are in
acute need of additional oxygen supply, and thereby decrease or avoid the need for transfusion of donor
blood. Alliance will remain responsible for development of Oxygent and future commercialization in the
U.S., and will continue with ongoing efforts to secure agreements for selected other countries.

Founded in 1946, IL YANG Pharmaceutical Co. Ltd. is a global pharmaceutical company headquartered
in Korea and listed on the Korean Stock Exchange. IL YANG specializes in the field of gastrointestinal
and urological disorders and cardiovascular disease, with a large array of compounds on the market. IL
YANG also co-owns two manufacturing operations in China and maintains strategic alliances with many
pharmaceutical industry leaders. More information is available at

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) and Form S-4
(File No. 333-49676). 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

Contact for further information in the U.S:
Corporate Communications
Alliance Pharmaceutical Corp.
San Diego, CA
(858) 410-5275

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