Legal Disclaimer March 2012 2012. A.P. Pharma, Inc. All rights reserved. 2 This presentation contains forward looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward looking s

Actual results may differ materially from the results expected in our forward looking statements. 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. Company: A.P. Pharma, Inc. Ticker: OTCBB: APPA.OB Stock Price: $0.33 (3/23/12) Market Capitalization: $111.2 million 1 Cash: $18.0 million 2 Debt: $1.57 million 2 Stock Summary 3 1 Based on 394.5 million fully diluted, as converted common shares assuming the full conversion of convertible debt outstanding or subject to purchase rights and 80 million warrants using treasury stock method; not including options 2 As of December 31, 2011 2012.