Oral Arguments in the UCSF Appeal of United States Patent and Trademark Office Judgment in Favor of InSite Vision Are Scheduled

  Oral Arguments in the UCSF Appeal of United States Patent and Trademark
  Office Judgment in Favor of InSite Vision Are Scheduled for November 6, 2012

   InSite Vision Along with Merck Will Vigorously Defend AzaSite^® Patents

Business Wire

ALAMEDA, Calif. -- September 27, 2012

InSite Vision Incorporated (OTCBB: INSV) today announced that oral arguments
are scheduled for November 6, 2012, in Washington, D.C. in connection with the
University of California, San Francisco’s (UCSF) appeal of the November 2011
favorable judgment of the United States Patent and Trademark Office (USPTO).
The USPTO panel of judges ruled in favor of InSite Vision and confirmed the
inventorship of InSite Vision’s U.S. Patent Nos. 6,239,113 and 6,569,443
protecting AzaSite^® (azithromycin ophthalmic solution) 1%. The appeal was
filed by UCSF with the U.S. Court of Appeals for the Federal Circuit in
Washington, D.C. on December 23, 2011, and a cross appeal was filed by InSite
Vision on January 4, 2012. Merck, which markets AzaSite in the U.S. for the
treatment of bacterial conjunctivitis, is collaborating with InSite on the
continued vigorous defense of the AzaSite patents.

“We are highly confident that the UCSF claims are entirely without merit as
confirmed by the USPTO judgment last November and we will continue to
collaborate actively with Merck to vigorously defend our position,” said
Timothy Ruane, InSite Vision’s Chief Executive Officer. “We anticipate results
of the appeal will be announced in 2013, but we could get a verdict before the
end of 2012.”

In 2009, the Regents of the University of California claimed that the
inventions contained in the patents were made by a former employee of the
University alone and without collaboration with InSite Vision, the assignee of
all the named inventors.

About InSite Vision

InSite Vision is advancing new ophthalmic products for unmet eye care needs
based on its innovative DuraSite^® and DuraSite 2^® platform technologies. The
DuraSite and DuraSite 2 drug delivery systems extend the duration of drug
retention on the surface of the eye, thereby reducing frequency of treatment
and improving the efficacy of topical drugs. DuraSite is currently leveraged
in two commercial products for the treatment of bacterial eye infections,
AzaSite^® (azithromycin ophthalmic solution) 1%, marketed in the U.S. by
Merck, and Besivance^® (besifloxacin ophthalmic suspension) 0.6%, marketed by
Bausch + Lomb. InSite Vision is also advancing three novel ophthalmic
therapeutics through Phase 3 clinical studies: AzaSite Plus^™ and DexaSite^™
for the treatment of eye infections, and BromSite^™ for pain and swelling
associated with ocular surgery. DuraSite 2 incorporates InSite’s proprietary
bioadhesive core technology with a cationic polymer to achieve sustained and
enhanced ocular delivery of drugs. The DuraSite 2 platform will be applied to
InSite’s future pipeline product candidates and available through a broad
licensing program for advanced ophthalmic drug development. For further
information on InSite Vision, please visit www.insitevision.com.

Forward-looking Statements

This news release contains certain statements of a forward looking nature
relating to future events, including InSite Vision’s expectations of a
successful outcome in the appeal, the expected timing of a decision by the
court, and other plans and expectations with respect to the litigation
described above. Such statements entail a number of risks and uncertainties,
including but not limited to: that the court may not rule in favor of InSite
Vision, the inherent uncertainty of any litigation matter including the
court’s decision and the timing of same; InSite Vision’s ability to continue
to adequately protect its intellectual property and to be free to operate with
regard to the intellectual property of others. Reference is made to the
discussion of these and other risk factors detailed in InSite Vision's filings
with the Securities and Exchange Commission, including its annual report on
Form 10-K and its quarterly reports on Form 10-Q, under the caption "Risk
Factors" and elsewhere in such reports. Any forward-looking statements or
projections are based on the limited information currently available to InSite
Vision, which is subject to change. Although any such forward-looking
statements or projections and the factors influencing them will likely change,
InSite Vision undertakes no obligation to update the information. Such
information speaks only as of the date of its release. Actual events or
results could differ materially and one should not assume that the information
provided in this release is still valid at any later date.

AzaSite^® and DuraSite^® are registered trademarks of InSite Vision
Incorporated.

BESIVANCE^® is a registered trademark of Bausch + Lomb Incorporated.

Contact:

InSite Vision
Louis Drapeau, 510-747-1220
Chief Financial Officer
mail@insite.com
or
Media and Investor inquiries
BCC Partners
Michelle Corral, 415-794-8662
Karen L. Bergman, 650-575-1509