Pipeline - New Products

Alimera Sciences is focused on developing novel prescription products for both the anterior and posterior segments of the eye, and delivering unique and differentiated ethical over-the-counter ("OTC") products. Alimera Sciences currently has four projects in development, which are the result of licensing and co-development initiatives.

Alimera Sciences is extremely pleased to be collaborating with pSivida Limited, a global bio-nanotech company. This worldwide agreement enables Alimera to co-develop and market
fluocinolone acetonide in the unique Medidur™ device for patients with diabetic macular edema
(DME), a major cause of vision loss in people suffering from diabetic retinopathy. Phase III
clinical trials were initiated in October 2005 to determine the effectiveness of injecting this
device into the vitreous of the eye to treat DME. The miniscule implant is small enough to be
injected into the eye via a 25 gauge needle and is expected to provide delivery of drug
to the back of the eye for up to three years. Currently, the only approved method of
treating DME involves laser photocoagulation therapy, which can leave irreversible blind
spots. Many other systemic compounds will not produce a therapeutic effect in the back
of the eye and those that might produce a significant effect must be injected often
due to a lack of true long term release characteristics.

We will be releasing more information on our pipeline products as
we progress.