Frost Gamma Investments Trust Increases Stake in Alliqua, Inc.

NEW YORK, Apr 2, 2012-- Alliqua, Inc. ALQA +11.11%  ("Alliqua" or the "Company") announced that entrepreneur Dr. Phillip Frost and other investors collectively purchased approximately 24 million shares pursuant to certain private stock purchases. Dr. Frost is an existing stockholder in Alliqua and as a result of his participation in these stock purchases is the beneficial owner of approximately 11.1% of Alliqua's common shares.

Alliqua's President and director, Richard Rosenblum, commented, "When such a renowned investor as Dr. Phillip Frost continues to increase his stake in Alliqua, it is a meaningful statement. We welcome his additional investment in Alliqua as it underscores his belief in the Company and the direction that management has taken."

Frost Gamma Investments Trust has invested more than $160 million in companies and technologies since it started in 2006. Among his other roles, Dr. Frost is Chairman of Israel based Teva Pharmaceuticals; Chairman of Ladenburg Thalmann Financial Services, Inc.; Chairman of OPKO Health, Inc.; and Chairman of PROLOR Biotech.

About Alliqua, Inc.

Alliqua, Inc. ALQA +11.11%  ("Alliqua") is an advanced biomedical products company focused on the development and manufacturing of proprietary technologies in the fields of drug delivery, advanced wound care and liver health preservation. Through its wholly-owned subsidiary, Alliqua BioMedical, Inc., Alliqua intends to develop active ingredient and transdermal drug delivery products, primarily utilizing the proprietary hydrogel technology platform of AquaMed Technologies, Inc. ("AquaMed"), Alliqua's subsidiary.

AquaMed manufactures custom hydrogels used for transdermal drug delivery, wound care, medical diagnostics, and cosmetics. These products use proprietary manufacturing technologies which enable AquaMed to produce what is known in the healthcare industry as high water content, electron beam cross-linked aqueous polymer sheet hydrogels. AquaMed believes that it is one of two manufacturers in the world for these gels. Alliqua's third subsidiary, HepaLife Biosystems, Inc., focuses on the development of a cell-based bioartificial liver system, known as HepaMate(TM).

Any statements contained in this press release regarding our ongoing research and development and the results attained by us to-date have not been evaluated by the Food and Drug Administration.

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