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Oculus Innovative Sciences Pays Off Debt to Strengthen Balance Sheet; Obtains $4.5 Million in Stockholders' Equity on a Pro

Oculus Innovative Sciences Pays Off Debt to Strengthen Balance Sheet; Obtains
$4.5 Million in Stockholders' Equity on a Pro Forma Basis as of September 30,
2013, Sufficient to Regain Compliance with NASDAQ Listing Rules

PETALUMA, Calif., Dec. 19, 2013 (GLOBE NEWSWIRE) -- In a transaction on
October 30, 2012, Oculus Innovative Sciences (Nasdaq:OCLS) agreed to issue
$3.5 million dollars of restricted common stock to its primary lender, Venture
Lending and Leasing (VLL), which agreed to reduce the company's debt liability
with the sale of these common shares. As of December 16, 2013, VLL sold all of
its shares of the company's common stock acquired in the October 30, 2012,
transaction at an average price of about $5.35 per share. The net proceeds of
the shares will be applied to the put warrant liabilities of those certain
warrants held by VLL, and will also prepay the remaining balance of principal
and interest owed by the company under those certain loan agreements with VLL.
The net result of this transaction is intended to increase the company's
stockholders' equity by $1 million. This also reduced Oculus' debt to less
than $60,000.

In addition, as a result of the company's recent equity raise in December
2013, along with the sale of shares held by VLL, the company has increased its
stockholders' equity by $3.0 million, and on a pro forma basis as of September
30, 2013, the company has obtained $4.5 million in stockholders' equity.
Accordingly, as of the date of this release, the company believes it has
regained compliance with the $2.5 million stockholders' equity requirement for
continued listing on the NASDAQ Capital Market.

The company is awaiting NASDAQ's formal determination with respect to its
compliance status. NASDAQ will continue to monitor the company's ongoing
compliance with the stockholders' equity requirement and, if the company's
quarterly report on Form 10-Q for the quarter ended December 31, 2013, does
not evidence such compliance, then the company may be subject to delisting.

As announced on November 22, 2013, the company received a letter from the
Listing Qualifications staff of The Nasdaq Stock Market LLC, notifying the
company that it was not in compliance with Nasdaq Listing Rule 5550(b)(1),
which requires the company to maintain a minimum of $2.5 million in
stockholders' equity for continued listing on the NASDAQ Capital Market.

About Oculus Innovative Sciences

Oculus Innovative Sciences is a global healthcare company that designs,
manufactures and markets prescription and non-prescription products in 27
countries. The company's products are used to treat patients in
surgical/advanced wound management, dermatology, women's health and animal
health markets; addressing the unmet medical needs of these markets, while
raising the standard of patient 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 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 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
"anticipates,""believes," "expects," and "intends," 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 an initial public offering of a separate public
company, 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 theyear ended March 31, 2013. The Company disclaims any
obligation to update these forward-looking statements, except as required by
law.

Oculus and Microcyn® Technology 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
         VP of Public and Investor Relations (425) 753-2105
         dmcfadden@oculusis.com
 
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