A.P. Pharma, Inc. (OTCBB: APPA.OB), a specialty pharmaceutical company, today announced closing of its underwritten public offering of 150,000,000 shares of common stock at a public offering price of $0.40 per share. Gross proceeds to A.P. Pharma are $60,000,000, before deducting underwriting discounts and commissions and offering expenses payable by A.P. Pharma. Jefferies LLC and Leerink Swann LLC acted as joint book-runners for the offering. JMP Securities LLC, Brean Capital, LLC and Oppenheimer & Co. acted as co-managers for the offering. The securities described above were offered by A.P. Pharma pursuant to a shelf registration statement (File No. 333-1900550), that was previously filed with and declared effective by the United States Securities and Exchange Commission (“SEC”). The securities described above have not been qualified under any state blue sky laws and were offered only to “Qualified Institutional Buyers” and other institutional and accredited investors as permitted by applicable law (see “Notice to Investors” in the prospectus for further details). This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. A final prospectus supplement relating to the offering was filed with the SEC and is available on the SEC’s website at www.sec.gov, or by request at Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 12th Floor, New York, NY 10022, telephone: (877) 547-6340, e-mail: Prospectus_Department@Jefferies.com; or Leerink Swann LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, or by telephone at (800) 808-7525, or by e-mail at firstname.lastname@example.org This press release includes forward-looking statements, including statements relating to the proceeds of the offering and closing of the offering. For these statements, A.P. Pharma claims the protection of the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. It should be noted that there are risks and uncertainties related to the public offering. A review of these risks can be found in A.P. Pharma's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, the prospectus filed with the SEC in connection with the offering and other reports and documents filed with the SEC.