Dr. Ron Najafi, Chairman and Chief Executive Officer of NovaBay, said, "We are pleased with the progress these global teams have made. With all three countries now enrolling in the BAYnovation study, we are closer to providing auriclosene to patients suffering from adenoviral conjunctivitis, and who have no other acute treatment option."

NovaBay has partnered with leading CROs – Quintiles Research in India, Chiltern International in Brazil, and Symbio, LLC in the U.S. – to conduct BAYnovation. For more information on BAYnovation, please visit: www.baynovation.org or www.clinicaltrials.gov/ct2/show/NCT01532336 .

About NovaBay Pharmaceuticals, Inc.

Going Beyond Antibiotics

NovaBay Pharmaceuticals is a biotechnology company focused on addressing the large unmet therapeutic needs of the global anti-infective market with its two distinct categories of compounds, Aganocides® and NeutroPhase® Skin and Wound Cleanser. The Company's four core business units, DermaBay, UroBay, EyeBay and MediBay, are developing treatments that tackle infections in the dermatology, urology, ophthalmology, and wound care areas.

Aganocide ® Compounds

NovaBay's first-in-class Aganocide compounds, led by auriclosene (NVC-422), are patented, topical antimicrobials with a broad spectrum of activity against bacteria, viruses and fungi. Mimicking the mechanism of action that human white blood cells use against infections, Aganocides are not subject to bacterial or fungal resistance, which has been demonstrated in in-vitro and in-vivo studies. Having demonstrated clinical efficacy in Phase 2 proof-of-concept clinical studies, auriclosene is suited to treat and prevent a wide range of local, non-systemic infections. NovaBay's clinical development activities are focused on three disease areas:

Dermatology – Partnered with Galderma, a leading dermatology company, to develop a formulation of auriclosene for treatment of highly contagious skin infection, impetigo, which occurs most commonly in children. Enrollment into a global Phase 2b clinical study has begun and clinical data results are expected in second half of 2013.

Ophthalmology – NovaBay is developing an eye drop formulation of auriclosene for treating adenoviral conjunctivitis, a highly contagious viral eye infection for which there is no approved acute treatment. Enrollment into a global Phase 2b clinical study has begun, and clinical data results are expected in the second half of 2013.

Urology – NovaBay's urinary catheter irrigation solution containing auriclosene is currently in a Phase 2b study, with the goal of reducing the incidence of urinary catheter blockage and encrustation (UCBE) and associated urinary tract infections. The Company reported positive data from the Phase 2a study and is evaluating the effect of an alternate more potent formulation of auriclosene in Phase 2b. Results are expected in the mid 2013.

NeutroPhase ®

NeutroPhase is the only pure hypochlorous acid (HOCI) skin and wound cleanser cleared by the U.S. Food and Drug Administration (FDA) to target the six-million-patient U.S. market of chronic non-healing wounds, such as pressure, venous stasis and diabetic ulcers. The saline-based solution is the only wound cleanser on the market to include a stabilized, pure form of HOCl shown in studies to kill bacteria in solution, including flesh-eating bacteria. For additional information, visit: www.neutrophase.com .

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Forward-Looking Statements

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