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NovaBay Pharmaceuticals, Inc. Announces Fourth Quarter and Full Year 2008 Financial Results
Date:4/1/2009

$7.4 million for the full year 2007. The increase was primarily attributable to an increase in development/clinical expenses and higher employee costs due to an increase in headcount.

General and administrative expenses totaled $5.6 million for the year ended December 31, 2008, compared with $4.4 million for the year-ago period. This increase was due in part to an increase in employee costs and related increases in other employee benefits and recruiting expenses

About NovaBay Pharmaceuticals, Inc.

NovaBay Pharmaceuticals is a mid-stage biopharmaceutical company focused on developing its proprietary and patented Aganocide compounds, first-in-class, novel, synthetic anti-infective product candidates that are bioequivalent to the active antimicrobial molecules generated within white blood cells to treat and prevent a wide range of infections without causing resistance. NovaBay has internal development programs aimed at addressing hospital and respiratory infections. The company has a licensing and research collaboration agreement with Alcon, Inc. for use of its Aganocides in the eye, ear and sinus, and in contact lens solutions. NovaBay has entered into an agreement with Galderma S.A. to develop and commercialize Aganocides in acne, impetigo and other dermatological indications. NovaBay(R) and Aganocide(R) are trademarks of NovaBay Pharmaceuticals, Inc. For more information on NovaBay, visit www.novabaypharma.com.

Forward-Looking Statements

This release contains forward-looking statements, which are based upon management's current expectations, assumptions, estimates, projections and beliefs. Statements regarding NovaBay's expectations of its 2009 cash burn, anticipation of proof-of-concept data later in 2009 on its earlier-stage internal pipeline programs, that it will receive from Galderma up to $50 million
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SOURCE NovaBay Pharmaceuticals, Inc.
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