May 22, 2009 16:04 ET

Allegiance Equity Corporation: Update on Trading Halt and License Agreement

TORONTO, ONTARIO--(Marketwire - May 22, 2009) - David Solomon, President of Allegiance Equity Corporation (the "Company" or "Allegiance")(TSX VENTURE:ANQ), wishes to inform its shareholders that trading in the Company's shares was halted on April 14, 2009 due to the Company's neglect in responding to correspondence from the TSX Venture Exchange ("TSXV") with respect to certain affairs of the Company. The Company has addressed the issues raised by the TSXV and the shares of the Company will resume trading on May 26, 2009.

The Company further wishes to announce that Prime Pharmaceutical, a company which Allegiance established and in which it holds a 37.4% equity interest, has terminated its license agreement with Biofrontera AG whereby Prime Pharmaceutical had licensed the worldwide rights to Relieva® and Psorerine® to Biofrontera AG. The license agreement was terminated as a result of Biofrontera AG failing to meet its obligations pursuant to the agreement. Prime Pharmaceutical is in discussion with several potential licencees for Relieva®.

Product and Intellectual Property

Prime invented psorberine, a proprietary concentrated extract from the Mahonia Aquifolium plant. Psorberine is combined in a Novosome base to enhance delivery of the cocktail of alkaloids in Mahonia. Relieva® has significant distinct competitive advantages over existing treatments including the world's largest selling psoriasis treatment that has estimated gross sales of $1 billion USD.

Other psoriasis treatments (including the leader) may lose their effectiveness over time as the disease builds up tolerability. This is not the case with Relieva®. Relieva® has a "0" irritancy rating, no health risks or side effects (whereas the leading treatment can be irritating to approximately 25% of patients, which makes it difficult for them to use).

Current treatments such as ultra-violet light, lotions and creams containing coal tar or steroids lack the combined efficacy and safety of Relieva®.

No current treatment is totally satisfactory, and doctors and patients are all looking for something that provides optimal effectiveness with a greater safety profile. Psoriasis is an incurable skin disease that is characterized by rapid cell proliferation and inflammation. It affects 3% of the world's population, and The Medical Technology Stock Letter estimates the global market for psoriasis therapies to exceed $7 billion annually.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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