Article: A.P. Pharma Reports 2004 Fourth Quarter and Full Year Results; IND Submitted for APF530; Phase 2 Study Cleared to Begin in 2Q05.

REDWOOD CITY, Calif. -- A.P. Pharma, Inc. (NASDAQ:APPA), a specialty pharmaceutical company, today reported financial results for the three and 12 months ended December 31, 2004.

Recent and Financial Highlights

--APF530 in development for the prevention of acute and delayed chemotherapy-induced nausea and vomiting progresses to Phase 2.

--Dose-ranging study confirms dose linearity and safety in healthy volunteers.

--Highest dose (20 mg dose of granisetron) added.

--Clearance received from the FDA to initiate a Phase 2 study following IND submission.

--Phase 2 study in cancer patients expected to commence in 2Q05.

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