Oculus Innovative Sciences Announces Reverse Split of Common Stock

Oculus Innovative Sciences Announces Reverse Split of Common Stock

Focused on Continued Expansion of Product Portfolio, Partnerships and Global
Commercial Footprint as Company Fundamentals Are Strong

PETALUMA, Calif., March 28, 2013 (GLOBE NEWSWIRE) -- Oculus Innovative
Sciences, Inc. (Nasdaq:OCLS), a global healthcare company that designs,
manufactures and markets prescription and non-prescription products in over 20
countries, announced today that a 1-for-7 reverse split of its common stock
will be effective at the open of business on Monday, April 1, 2013. The
reverse stock split was previously approved by the company's stockholders at
the company's special meeting held on March 22, 2013. The company's board of
directors approved the implementation of a reverse stock split and determined
the appropriate reverse stock split ratio to be a ratio of 1-for-7 on March
22, 2013.

Oculus has demonstrated strong fundamentals and growth as the company targets
profitability.Operating losses, minus non-cash expenses (EBITDAS), for the
nine months ended December 31, 2012, was $398,000, a significant reduction
from $2.4 million in the same period in the prior year. Over the past four
years, product revenues increased an average of 39% annually and current
product gross margins are averaging greater than 70%. The company has a strong
cash position, which is expected to be greater than $7.5 million at the end of
the fourth quarter ending March 31, 2013. 

Jim Schutz, Oculus CEO said, "This reverse split puts us back in good standing
with NASDAQ, enabling us to focus on expanding our commercial efforts and the
growth ofour global footprint.Our fundamentals are strong with a solid cash
position, growing product salesand a strong pipeline of new product
formulations.Finally, our drug subsidiary, Ruthigen, Inc., is focused
onexcitingnext steps to bring forwarda much-needed anti-infective drug for
the reduction of infections in surgical and trauma procedures."

At the effective time of the reverse stock split, every seven shares of
Oculus' issued and outstanding common stock will be automatically converted
into one newly issued and outstanding share of common stock, without any
change in the par value per share.All fractional shares will be rounded up
the nearest whole share.

The reverse stock split will reduce the number of shares of Oculus' common
stock outstanding from 46.1 million to approximately 6.6 million. The number
of authorized shares of the company's common stock will also be proportionally
reduced from 100 million to approximately 14.3 million. Proportional
adjustments will be made to Oculus' stock options, warrants and
equity-compensation plans. The reverse stock split will have no effect on the
company's authorized shares of preferred stock.

The company's common stock will continue to trade on The NASDAQ Capital Market
under the symbol "OCLS". A new CUSIP number will be issued to Oculus' common
stock after the reverse stock split becomes effective.

The reverse stock split is intended to increase the per share trading price of
the company's ordinary shares to satisfy the $1.00 minimum bid price
requirement for continued listing on The NASDAQ Capital Market. In order to
maintain the company's listing on NASDAQ, the company's common stock must have
a closing bid price of $1.00 or more for a minimum of 10 consecutive trading
days prior to April 15, 2013. There can be no assurance that the reverse stock
split will have the desired effect of raising the closing bid price of the
company's common stock prior to April 15, 2013, to meet such requirement.

Once the reverse stock split becomes effective, stockholders holding shares
through a brokerage account will have their shares automatically adjusted to
the reflect the 1:7 reverse stock split. Existing stockholders holding common
stock certificates will receive a letter of transmittal from the company's
transfer agent, Computershare, Inc. with specific instructions regarding the
exchange of shares.

About Oculus Innovative Sciences

Oculus Innovative Science is a global healthcare company that designs,
manufactures and marketsprescription and non-prescription products in over 20
countries. The company's products are designed to treat patients in the
surgical/advanced wound management, dermatology, women's health and animal
health and address the unmet medical needs of those markets, while raising the
standard ofpatient care and lowering overall healthcare costs.The company's
headquarters are in Petaluma, California, with manufacturing operations in the
United States and Latin America. More information can be found

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 commercial and technology progress and futurefinancial performance
of Oculus Innovative Sciences, Inc. and its subsidiaries (the "Company").
These forward-looking statements are identified by the use of words such as
"enabling," "expects," "expanding," "intends," "growing" and"to
bring,"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, includingsuchrisks thatregulatory
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 bythe Company'spatents and patent
applications may be challenged, invalidated or circumvented by its
competitors,the available market fortheCompany'sproducts will not be as
large as expected,the Company'sproducts 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 itsfuture 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 and initial public offering
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 its annual report on Form 10-K for theyear ended March
31, 2012. The Company disclaims any obligation to update these forward-looking
statements except as required by law.

The Company's 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
         Vice President of Public and Investor Relations
         (425) 753-2105
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