ALIMERA SCIENCES REPORTS FOURTH QUARTER 2010 FINANCIAL RESULTS Reiterates Positive 36-Month Results From the Completed Phase 3 FAME Study of ILUVIEN in Patients with Diabetic Macular Edema Cash, cash equivalents and inve

ALIMERA SCIENCES REPORTS FOURTH QUARTER 2010 FINANCIAL RESULTS

Reiterates Positive 36-Month Results From the Completed Phase 3 FAME Study of

ILUVIEN in Patients with Diabetic Macular Edema

Cash, cash equivalents and investments at December 31, 2010 totaled $54.8 million

ATLANTA, GA February 10, 2011 Alimera Sciences, Inc., (NASDAQ: ALIM) ( Alimera ), a

biopharmaceutical company that specializes in the research, development and commercialization of

prescription ophthalmic pharmaceuticals, today announced financial results for the fourth quarter

and year ended December 31, 2010.

Our recently released 36-month data showed a consistent response rate of patients whose best

corrected visual acuity improved by 15 or more letters from baseline at month 24 and month 36, with

a peak rate of 31.4% in month 30. We believe these data demonstrate that ILUVIEN can provide a

long-term option for the treatment of diabetic macular edema (DME), for up to three years, and we

look forward to continuing to work with the FDA toward the approval of ILUVIEN for the treatment of

DME, said Dan Myers, president and chief executive officer of Alimera. During the fourth quarter

of 2010, we increased our pre-marketing budget in preparation for the commercial launch of ILUVIEN

previously expected in the first half of 2011. Our team has many years of experience launching new

pharmaceutical products and we are confident in our go-to-market strategy for a potential

introduction later this year.

Alimera received a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA)

in the latter half of December 2010. The FDA issued the CRL to communicate its decision that the

New Drug Application (NDA) for the investigational drug ILUVIEN could not be approved in its

The NDA included data through month 24 of the study. No new clinical studies were requested by the

FDA in the CRL. However, the FDA asked for analyses of the safety and efficacy data through the end

of the FAME Study to further assess the relative benefits and risks of ILUVIEN. Alimera is

currently preparing the analyses the FDA requested having completed the FAME Study and publicly

released data on February 3, 2011. The FDA is also seeking additional information regarding

controls and specifications concerning the manufacturing, packaging and sterilization of ILUVIEN,

which Alimera is in the process of compiling.

The FAME Study consisted of two Phase 3 pivotal clinical trials (Trial A and Trial B) to assess the

safety and efficacy of ILUVIEN for the treatment of DME. Both Trial A and Trial B demonstrated

statistical significance in comparison to the control at month 33 individually and on a combined

basis at month 36. The FDA confirmed to Alimera in a recent meeting that there is no requirement to

demonstrate statistical significance in the two trials individually or in the aggregate at month

36. Therefore, Alimera believes these results meet the criteria for replication of efficacy in the

We believe the additional 36-month data we recently released will help the FDA evaluate the safety

and efficacy of ILUVIEN and gain further clarity into the benefit to risk ratio. These data will

be included in our submission to the FDA in a follow up to the CRL. Moreover, based on recent

discussions with the FDA we anticipate that the FDA will call an advisory panel subsequent to the

receipt of this submission. We continue to believe that ILUVIEN will be the first ophthalmic drug

approved in the United States for the treatment of DME and have an addressable market that could

reach $1 billion per year, said Mr. Myers.

Financial Highlights

Research and development expenses for the fourth quarter of 2010 decreased to $2.1 million,

compared to $3.1 million for the fourth quarter of 2009, primarily due to the completion of the

FAME Study patient follow up in September of 2010.

General and administrative expenses in the fourth quarter of 2010 were $1.3 million compared to

$1.1 million in the fourth quarter of 2009.

Marketing expenses in the fourth quarter of 2010 were $2.7 million compared to $0.2 million for the

fourth quarter of 2009. The increase was primarily due to pre-marketing expenditures related to the

commercial launch of ILUVIEN, which was previously expected in the first half of 2011.

Net loss for the quarter ended December 31, 2010 was $6.3 million, or $0.20 per common share,

compared with a net loss of $24.8 million, or $15.85 per common share, for the quarter ended

December 31, 2009. The primary reason for the decrease in net loss was due to a loss related to an

increase in fair value of the conversion feature of Alimera s previously outstanding preferred

stock in the fourth quarter of 2009. Net loss per share was based on 31,209,551 weighted average

shares outstanding for the fourth quarter of 2010 and 1,564,075 weighted average shares for the

fourth quarter of 2009.

As of December 31, 2010, Alimera had cash, cash equivalents and investments of $54.8 million,

compared to $4.9 million as of December 31, 2009. In October 2010, Alimera obtained a $32.5 million

senior secured credit facility comprised of a $12.5 million term loan and a $20.0 million working

capital revolver. Alimera borrowed $6.25 million of the term loan upon the closing of the

facility. The remaining $6.25 million would be available only following FDA approval of ILUVIEN,

but no later than July 31, 2011. Given the status of the FDA s review of the NDA, it is unlikely

that FDA approval would occur prior to July 31, 2011. Borrowings on the revolver may be drawn

subsequent to FDA approval of ILUVIEN up to 85% of eligible accounts receivable.

Alimera intends to market and sell ILUVIEN to the approximately 1,600 retinal specialists

practicing in the approximately 900 retina centers across the United States and Canada.

Alimera believes its current cash, cash equivalents, investments and credit facility are sufficient

to fund operations through the projected commercialization of ILUVIEN in late 2011.

Conference Call to be Held Today

Alimera will hold a conference call to discuss these results today at 4:30 P.M. ET. The conference

call will be hosted by Dan Myers, president and chief executive officer, and Rick Eiswirth, chief

operating officer and chief financial officer.

To participate in the call, please dial (877) 369-6586 (U.S. and Canada) or (253) 237-1165

(international). A live webcast will be available on the Investor Relations section of the

corporate website at http://www.alimerasciences.com.

A replay of the conference call will be available beginning February 10, 2011 at 7:30 P.M. ET and

ending on February 24, 2011 by dialing (800) 642-1687 (U.S. and Canada) or (706) 645-9291

(international), Conference ID Number: 40881561. A replay of the webcast will be available on the

corporate website for two weeks, through February 24, 2011.

ILUVIEN is an investigative, extended release intravitreal insert that Alimera is developing for

the treatment of DME. Each ILUVIEN insert is designed to provide a therapeutic effect of up to 36

months by delivering sustained sub-microgram levels of fluocinolone acetonide (FAc). ILUVIEN is

inserted in the back of the patient s eye to a position that takes advantage of the eye s natural

fluid dynamics. The insertion device employs a 25-gauge needle, which allows for a self-sealing

About Alimera Sciences, Inc.

Alimera Sciences, Inc., based in Alpharetta, Georgia, is a biopharmaceutical company that

specializes in the research, development and commercialization of prescription ophthalmic

pharmaceuticals. Presently, Alimera is focused on diseases affecting the back of the eye, or

retina. Its advanced product candidate ILUVIEN is an intravitreal insert containing fluocinolone

acetonide (FAc), a non-proprietary corticosteroid with demonstrated efficacy in the treatment of

ocular disease. ILUVIEN is in development for the treatment of DME, a disease of the retina that

affects individuals with diabetes and can lead to severe vision loss and blindness.

Forward Looking Statements

This press release contains forward-looking statements, within the meaning of the Private

Securities Litigation Reform Act of 1995, regarding, among other things, Alimera s future results

of operations and financial position, business strategy and plans and objectives of management for

Alimera s future operations. Words such as anticipate, believe, estimate, expect, intend,

may, plan, predict, project, likely, will, would, could, and similar expressions

are intended to identify forward-looking statements, although not all forward-looking statements