Oculus Innovative Sciences, Inc. to Raise $1.35 Million in Registered Direct Offering

Oculus Innovative Sciences, Inc. to Raise $1.35 Million in Registered Direct
Offering

PETALUMA, Calif., Feb. 21, 2014 (GLOBE NEWSWIRE) -- Oculus Innovative
Sciences, Inc. (Nasdaq:OCLS) announced today that it has entered into
definitive agreements with two life sciences-focused institutional investors
for the sale of 450,620 units, consisting of shares of common stock, and
Series A and Series B warrants, at a per unit price of $3.00 per share. The
total amount sold consisted of a combination of: (1) 450,620 shares of its
common stock; (2) Series A warrants to purchase up to 450,620 shares of common
stock at an exercise price of $3.00 per share and a term of five years; and
(3) Series B warrants to purchase up to 1,400,000 shares of common stock at an
exercise price of $3.63 per share. The Series B warrants are not exercisable
for six months following the closing of the IPO and have a term of 18 months.
The Series B warrants have not vested and will not vest until the completion
of the initial public offering (IPO) by the company's subsidiary, Ruthigen,
Inc. The Series B warrants terminate on March 31, 2014, if the Ruthigen IPO
has not occurred by that date.

Oculus Innovative Sciences will receive approximately $1.35 million in gross
proceeds from the offering. The offering is expected to close on or about
February 27, 2014, subject to customary closing conditions. Net proceeds from
the offering will be used to fund working capital needs and for general
corporate purposes.

Dawson James Securities, Inc. acted as the exclusive placement agent for the
offering.

The proposed public offering of the common stock and Series A warrants is
being made pursuant to the company's effective shelf registration statement,
and may be made only by means of a prospectus and prospectus supplement. A
copy of the prospectus supplement relating to the common stock and warrants
can be obtained from Dawson James at: mmaclaren@dawsonjames.com. An electronic
copy of the prospectus supplement will also be available on the website of the
Securities and Exchange Commission (the "SEC") at http://www.sec.gov. The
Series B warrants are not registered and are being sold pursuant to an
exemption from registration for sales to a limited number of qualified
institutional buyers. This press release is neither an offer to sell, nor a
solicitation of an offer to buy, nor shall there be any sale of, these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state.

About Oculus Innovative Sciences, Inc.

Oculus Innovative Science is a global healthcare company that designs,
manufactures and markets prescription and non-prescription products in 31
countries. The company's products are used to treat patients in
surgical/advanced wound management, dermatology, women's health and animal
health; 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 future financial 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
 
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