Exhibit 99.2

               ALLIANCE PHARMACEUTICAL CORP. ANNOUNCES PURCHASE OF
                        OXYGENT(TM) INTEREST FROM BAXTER


     SAN DIEGO, CA; JUNE 19, 2003 --- Alliance Pharmaceutical Corp. (OTCBB:
ALLP.OB) announced today that it has purchased Baxter Healthcare Corporation's
ownership interest in PFC Therapeutics, LLC, the joint venture established by
Alliance and Baxter in May 2000 to commercialize Oxygent(TM) (perflubron
emulsion), an intravascular oxygen carrier, in North America and Europe. As
reported previously, Alliance will pay to Baxter a royalty on the sales of
OXYGENT by PFC Therapeutics, its licensees, or its assignees following
regulatory approval.

     Alliance announced earlier today that it has completed the sale of its
Imagent(R) assets to Photogen Technologies Inc.

     Commenting on these events, Duane J. Roth, Chairman and CEO of Alliance,
stated, "With these actions, we now own the worldwide rights to Oxygent and will
move aggressively to obtain partners and/or alternative financing to commence
the planned Phase 3 clinical trial in Europe. We remain convinced that Oxygent
is a viable product that will address the need for alternatives to blood
transfusions in surgery."

     Alliance Pharmaceutical Corp. has been developing therapeutic and
diagnostic products based on its perfluorochemical and surfactant technologies.
It is focusing primarily on the development of Oxygent, a sterile
perfluorochemical emulsion that is universally compatible with all blood types.

     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 otherwise.

     For further information, please contact: Investor Relations at (858)
410-5275.