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A.P. Pharma Receives Extension for Nasdaq Listing Compliance

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Jun. 3, 2009-- A.P. Pharma, Inc. (Nasdaq: APPA), a specialty pharmaceutical company, today announced that on May 29, 2009, it received a letter from the Listing Qualifications Department of The Nasdaq Stock Market (Nasdaq) granting A.P. Pharma an extension to regain compliance with the minimum $10 million stockholders' equity requirement for continued listing on The Nasdaq Global Market under Nasdaq Marketplace Rule 5450(b)(1)(A). In April 2009, A.P. Pharma announced that it had received a letter from Nasdaq notifying the Company that it was not in compliance with this requirement.

Under the terms of this extension, on or before July 16, 2009, A.P. Pharma must furnish to the Securities and Exchange Commission and Nasdaq a publicly available report that, among other things, evidences compliance with the minimum $10 million stockholders' equity requirement. In the event A.P. Pharma does not satisfy the terms of this extension, the Company expects to receive a further notice of non-compliance. If it receives a notification, A.P. Pharma may request a hearing before a Nasdaq Listing Qualifications Panel (Panel) or may be able to move to The Nasdaq Capital Market. In the event of a hearing, the Company’s securities would remain listed pending a final determination by the Panel.

About A.P. Pharma

A.P. Pharma is a specialty pharmaceutical company developing products using our proprietary Biochronomer™ polymer-based drug delivery technology. Our primary focus is on our lead product candidate, APF530, which has completed a pivotal Phase 3 clinical trial for the prevention of CINV. An NDA for APF530 was submitted in May 2009. The Company has additional clinical- and preclinical-stage programs in the area of pain management, all of which utilize its bioerodible injectable and implantable delivery systems. For further information, please visit the Company's web site at www.appharma.com.

Forward-looking Statements

This news release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including uncertainties associated with timely development, approval, launch and acceptance of new products, satisfactory completion of clinical studies, establishment of new corporate alliances, progress in research and development programs and other risks and uncertainties identified in the Company's filings with the Securities and Exchange Commission. We caution investors that forward-looking statements reflect our analysis only on their stated date. We do not intend to update them except as required by law.

Source: A.P. Pharma, Inc.

Corporate Contact:
A.P. Pharma, Inc.
John B. Whelan, Vice President, Finance and Chief Financial Officer
650-366-2626

and

Investor and Media Relations:
Corporate Communications Alliance, LLC
Edie DeVine
209-814-9564