EXHIBIT 99.1

                     ALLIANCE PHARMACEUTICAL CORP. ANNOUNCES
                    COMPLETION OF PRIVATE PLACEMENT FINANCING

SAN DIEGO, CA; NOVEMBER 3, 2001 --- Alliance Pharmaceutical Corp. (NASDAQ-ALLP)
announced today that it has completed a previously announced private placement
financing from which Alliance received proceeds of $15,100,150. The initial
closing of the financing involved the issuance of 4,314,329 shares of Alliance
common stock at $3.50 per share to a group of institutional and individual
investors who also received warrants to purchase 4,334,329 shares of Alliance
common stock, exercisable at $4.20 per share. The number of shares issued to the
investors and the warrant exercise price were both subject to adjustment based
on the volume weighted average price of Alliance's common stock during the 10
trading days ended November 29, 2001, which was $3.38 per share. Pursuant to the
terms of the purchase agreement, Alliance has now issued an additional 153,174
shares of its common stock to the investors and reduced the warrant exercise
price to $ 4.06 per share.

     In a related development, the Company has reduced its long-term debt by
$9.5 million as a result of the conversion of a portion of Alliance's four-year,
5% Subordinated Convertible Debentures into approximately 2.8 million shares of
Alliance common stock. The former Debenture holders have agreed to certain
restrictions on the sale of the common shares issued from the conversion.

     As a result of these activities, Alliance now has approximately 17.2
million shares outstanding.

     The proceeds from the financing will be used to seek final US Food and Drug
Administration (FDA) approval for Alliance's IMAVIST(TM) ultrasound contrast
agent, to continue the clinical development of the Company's intravascular
oxygen carrier, OXYGENT(TM), and for working capital.

Alliance Pharmaceutical Corp. is developing therapeutic and diagnostic products
based on its perfluorochemical and surfactant technologies. Alliance's products
are intended primarily for use during acute care situations, including surgical,
cardiology, and respiratory applications. OXYGENT (perflubron emulsion) is being
developed in the United States, Canada, and Europe in conjunction with Baxter
Healthcare Corporation. IMAVIST is being developed jointly by Alliance and
Schering AG, Germany. The FDA has reviewed a New Drug Application for IMAVIST
and found it to be approvable upon satisfactory response to issues identified in
the review process. Alliance recently submitted documentation to the FDA that it
believes fully addresses these issues, and the Company is therefore expecting
final approval and permission for marketing IMAVIST in the U.S. Additional
information about the Company is available on Alliance's web site at
WWW.ALLP.COM.

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. 333-47032) 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 otherwise.

                    For further information, please contact:
   Gwen Rosenberg, Vice President, Corporate Communications, at (858) 410-5275