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Letter from Alliqua CEO, Dave Johnston, to Shareholders

for sustained growth in the future.

Capital Conservation and Growth

We recently completed a round of financing by our insiders which I believe demonstrates the confidence we have in our ability to build Alliqua for the future.  These funds are expected to be allocated toward the revenue-generating efforts I described earlier. While funding is vital to any company, success is driven by more than just capital. I believe the changes we made in 2012, including the strategic differentiation of our Alliqua Biomedical and AquaMed Technologies divisions, provides Alliqua with the foundation necessary to achieve our vision to become a world-class wound-care and topical drug delivery business. 

In conclusion, I would like to thank our stockholders, advisors and colleagues who believe in this company and remain committed to its success. I look forward to continuing our work together in 2013 as we strive to execute on our plans, increase revenue and create outstanding returns for our company and its stockholders for years to come.  I wish you all well and look forward to updating you on our accomplishments throughout the year.

Warm Regards,

Dave Johnson
Alliqua, Inc.

About Alliqua, Inc.

Alliqua, Inc. (ALQA) ("Alliqua") is a biopharmaceutical company focused on the development, manufacturing, and distribution of proprietary transdermal wound care and drug delivery technologies. Alliqua's leading technology platform produces hydrogels, a 3-dimensional cross-linked network of water soluble polymers capable of numerous chemical configurations.

Alliqua currently markets its new line of 510K FDA-approved hydrogel products for wound care under the SilverSeal® brand. Alliqua's electron beam production process, located at its 16,000 square foot GMP manufacturing facility in Langhorne PA, allows Alliqua to aggressively develop

SOURCE Alliqua, Inc.
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