NovaBay announces third quarter 2007 financi...(er associated urinary tract infec...),Health

tract infections, a significant source of hospital-associated

infections. An Investigational New Drug application for this

indication is expected to be filed with the FDA before the end of

2007.

During the third quarter of 2007, NovaBay continued its work to

develop its Aganocide compounds with its partner, an affiliate of

Alcon, Inc., for use in the treatment of infections in the eye, ear

and sinus and in contact lens solutions.

About NovaBay

NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing innovative product candidates targeting the treatment or prevention of a wide range of infections in hospital and non-hospital environments. NovaBay has discovered and is developing a class of non-antibiotic anti-infective compounds, which it has named Aganocide compounds, which are based upon small molecules that are generated by white blood cells that defend the body against invading pathogens. NovaBay believes that Aganocide compounds could form a platform on which to create a variety of products to address differing needs in the treatment and prevention of bacterial and viral infections, including Methicillin-Resistant Staphylococcus aureus (MRSA). NovaBay has entered into a licensing and research collaboration agreement with an affiliate of Alcon, Inc. for use of the Aganocide compounds in the eye, ear and sinus and in contact lens solutions and a license agreement with an affiliate of Kinetic Concepts, Inc. for the use of NovaBay's NeutroPhase product in woundcare applications.

NovaBay(TM) , Aganocide(TM) and NeutroPhase(TM) are trademarks of NovaBay

Pharmaceuticals, Inc. All other trademarks and trade names are the

property of their respective owners.

Forward Looking Statements

This release contains forward-looking statements, which are based upon management's current expectations, assumptions,
'/>"/>