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Alliance Pharmaceutical Corp. Announces Approval of Proposed Actions at Annual Shareholders Meeting
Date:6/2/2008

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.


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SOURCE Alliance Pharmaceutical Corp.
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