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Dutton & Associates Announces Investment Opinion: A.P. Pharma, Inc. Speculative Buy Rating in Update by Dutton Associates

EL DORADO HILLS, Calif., Apr 01, 2005 (BUSINESS WIRE) -- Dutton Associates updates coverage of A.P. Pharma, Inc. (Nasdaq:APPA), reiterating a Speculative Buy rating and our 12-month price of $3.00. The 12-page report by Dutton senior analyst Stephen L. Handley is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and other leading financial portals. A.P. Pharma, Inc. is a specialty pharmaceutical company seeking to develop and commercialize products utilizing its proprietary polymer-based drug delivery systems. We judge that the Company's current valuation of about $40 million is no greater than the present value of future royalties from two currently licensed products, with virtually no value accorded to any compounds under development.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs, have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 90 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $33,000 prepaid before commencement of our research activities. We received $55,000 from the Company for 7 Research Reports with coverage commencing on 12/5/2003. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

SOURCE: A.P. Pharma, Inc.

Dutton Associates
John M. Dutton,
916-941-8119