Ruthigen Establishes Independent Headquarters and Targets Public Offering In 2013

Ruthigen Establishes Independent Headquarters and Targets Public Offering In
2013

PETALUMA, Calif. and SANTA ROSA, Calif., Jan. 28, 2013 (GLOBE NEWSWIRE) --
Ruthigen, Inc., a biopharmaceutical company focused on a unique and new drug
candidate, RUT58-60, today announced it has established independent officesat
a new facility in Santa Rosa, California, inpreparationfor spinoff and an
intended public offering in 2013. RUT58-60 is a drug candidate intended for
accelerating patient discharge post surgery, on average 25% faster, as
compared to current standards of care.RUT58-60 contributes to prevention and
treatment of infections inhospital settings, as well ashealing incision
sites via promotion of angiogenesis.

Designed to prevent and treat infections, including MRSA and C
diff,RUT58-60's addressable market includes 46 million surgical and trauma
procedures performed in U.S. hospitals and more than 200 million procedures
globally.

Hoji Alimi, founder and CEO of Ruthigen said: "The spinoff of Ruthigen is part
of our growth strategy with an eye to providing current Oculus
shareholdersequity in both companies.I'm proud to have been able to lead a
dedicated team that has grown Oculus from a clinically focused biotech during
the Wall Street meltdown of 2008to the successful commercial company it is
today—with a revenue run rate of $18 million, 39% average product revenue
growth rate over the past three years and EBITDAS losses of only $235,000 for
the first six months of the currentfiscal year. Oculus is on track for
profitability and has a strong cash position of $8.3 million as of the end
ofSeptember 2012. I plan to focus Ruthigen on development of its unique drug,
RUT58-60, to accelerate patient discharge post surgery as demonstrated in a
number of clinical investigations and peer-reviewed publications. Finally, I
am confident that Jim Schutz is the ideal candidate to take the wheel at
Oculus given his experience inlicensing, mergers, acquisitions and
partnering."

Jim Schutz, newly appointed CEO of Oculus said:"Oculus is well positioned to
achieve profitability andsustainable growth over the next few years. In
parallel with the Ruthigen spinoff, the Oculus team is focused on accelerating
revenue growth by offering newproducts through current partners, the addition
of new partners, and all while expandingour international footprint. We
believe the one-two punch of Ruthigen andOculus will benefit shareholders
today and going forward."

Ruthigen Spinoff Preparations

Oculus management is working with securities counsel and bankers on a plan to
provide equity in Ruthigen to Oculus shareholders. Oculus expects the spinoff
to be a tax-free stock distribution and ultimately anticipates Ruthigen to
become an independent NASDAQ-traded company. Oculus has retained bankers and
financial advisors for the spinoff, and expects the spinoff to be completed in
2013. Execution of the transaction requires further work relative to
structure, governance and other significant matters and risks.

The completion of the proposed spinoff is subject to certain customary
conditions, including final approval by Oculus' board of directors, the filing
and effectiveness of appropriate filings with the U.S. Securities and Exchange
Commission including a registration statement on form S-1, and any necessary
third-party consents, as well as certain other matters relating to the
spinoff, receipt of legal opinions, execution of intercompany agreements, and
final approval of the transactions contemplated by the spinoff, as may be
required under Delaware law. Oculus notes that there can be no assurance that
any separation transaction will ultimately occur, or, if one does occur, its
terms or timing.

About Ruthigen

Ruthigen, Inc. is a fully owned subsidiary of Oculus Innovative Sciences, Inc.
(Nasdaq:OCLS).Ruthigen focuses on the development of RUT58-60, a drug
candidate intended for accelerating patient discharge post surgery.RUT58-60
is a new and unique chemical formulation containing twice the concentration of
hypochlorous acid as compared to Microcyn® Technology, along with magnesium
and no sodium hypochlorite.It is specifically designed for internal use
targeting organ exposure.

RUT58-60 has been formulated based on several clinical studies in
international markets including a 2006 clinical retrospectively controlled
study involving 40 post-surgical peritonitis patients.The 20 patients in the
study group, who were treated with the preliminary RUT58-60 formulation and
saline, were in the hospital on an average of 22.4 days following surgery,
whereas the control group, which was treated with saline alone, demonstrated a
longer hospital stay on average of 31.9 days. Both groups were treated with
systemic antibiotics.

About Oculus Innovative Sciences

Oculus Innovative Sciences is a healthcare company that designs, produces and
markets innovative, safe and effective products and medical devices based on
Microcyn® Technology. Oculus is a commercial medical device company with
laser-sharp focus on revenue growth and profitability through its partnerships
in a number of diverse markets including wound care, dermatology and animal
healthcare.The company's headquarters are in Petaluma, California, with
manufacturing operations in the United States and Latin America. More
information can be found at www.oculusis.com.

Forward-Looking Statements

Except for historical information herein, matters set forth in this press
release are forward-looking within the meaning of the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995, including statements
about the Company's commercial and technology progress and future financial
performance. These forward-looking statements are identified by the use of
words such as "achieve," "accelerating," and "expanding," among others.
Forward-looking statements in this press release are subject to certain risks
and uncertainties inherent in the Company's business that could cause actual
results to vary, including such risks that regulatory clinical and guideline
developments may change, scientific data may not be sufficient to meet
regulatory standards or receipt of required regulatory clearances or
approvals, clinical results may not be replicated in actual patient settings,
protection offered by the Company's patents and patent applications may be
challenged, invalidated or circumvented by its competitors, the available
market for the Company's products will not be as large as expected, the
Company's products will not be able to penetrate one or more targeted markets,
revenues will not be sufficient to fund further development and clinical
studies, the Company may not meet its future capital needs, and its ability to
obtain additional funding, as well as uncertainties relative to varying
product formulations and a multitude of diverse regulatory and marketing
requirements in different countries and municipalities, the uncertainties
associated with effecting a spinoff of a separate public company, and the
discretion of Oculus' Board of Directors to delay or cancel the spinoff prior
to execution, and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission including the annual
report on Form 10-K for the year ended March 31, 2012. Oculus Innovative
Sciences disclaims any obligation to update these forward-looking statements
except as required by law.

Oculus press releases contain information about products, which may or may not
be available in any particular country, and if applicable, may have received
approval or market clearance by a governmental regulatory body for different
indications and restrictions in different countries. Each country has specific
laws, regulations and medical practices governing the communication of medical
or other information about medical products. Nothing herein should be
construed as a solicitation or promotion for any product or for an indication
for any product, which is not authorized by the laws and regulations of the
country where the reader resides.

Oculus, Microcyn Technology and Ruthigen are trademarks or registered
trademarks of Oculus Innovative Sciences, Inc. All other trademarks and
service marks are the property of their respective owners.

CONTACT: Media and Investor Contact:
        
         Oculus Innovative Sciences, Inc.
         Dan McFadden
         Director of Public and Investor Relations
         (425) 753-2105
         dmcfadden@oculusis.com
 
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