NovaBay Pharmaceuticals and China Pioneer Pharma Announce Expansion of Partnership Agreement

Pioneer to License Rights to Commercialize Two New NovaBay Products In China and Southeast Asia

NovaBay to Receive $5.7 Million Equity Investment from China Pioneer Pharma

EMERYVILLE, Calif., and SHANGHAI, China, Dec. 2, 2013 (GLOBE NEWSWIRE) -- NovaBay Pharmaceuticals, Inc. (NYSE MKT:NBY), a clinical-stage biopharmaceutical company developing non-antibiotic antimicrobial products, today announced that it has expanded its NeutroPhase^® commercial partnership agreement with China Pioneer Pharma Holdings Limited. (HK: 1345) ("Pioneer"), a Shanghai-based company that markets high-end pharmaceutical products. This agreement replaces the previous option to invest $3 million in NovaBay. The expanded agreement includes licensing rights to two new products, CelleRx™ and i-Lid™ Cleanser, developed by the MediBay Business Unit of NovaBay. The expanded partnership agreement covers the commercialization and distribution of these products in China and 11 countries in Southeast Asia.

CelleRx™ is a new product developed by NovaBay for use in the field of aesthetic dermatology. NovaBay's other new product, i-Lid™ cleanser, was designed for use in ophthalmological applications. With the expansion of the commercial partnership agreement to include these two products, both in the NeutroPhase family of products, Pioneer has agreed to purchase 5 million unregistered shares of NovaBay stock for a total investment of $5.7 million.

"We have been extremely pleased with our relationship with NovaBay and look forward to the upcoming approval of NeutroPhase in China. We believe this market expansion will open up additional market opportunities," said Paul Li, Chairman and CEO of Pioneer. "We are delighted to increase our equity investment in NovaBay and believe its portfolio of products has a great deal of promise globally."

"We are excited to expand our relationship with Pioneer, "said Dr. Ron Najafi, Chairman and Chief Executive Officer of NovaBay. "This investment strengthens our balance sheet and is indicative of Pioneer's commitment to NovaBay's commercial-stage product and its clinical pipeline led by auriclosene."

NovaBay expects to establish additional marketing partnerships for CelleRx and i-Lid Cleaner in select territories around the globe. For more information about partnering opportunities in US, Europe and the rest of the world, contact Roy Wu, Senior VP, Business Development.

About China Pioneer Pharma Holdings Limited.

Pioneer is one of the largest comprehensive marketing, promotion and channel management service providers dedicated to imported pharmaceutical products and medical devices in China. Founded in 1996, Pioneer has been growing fast. Today, it has established a nationwide marketing, promotion and channel management service network covering over 20,000 hospitals and other medical institutions across 31 provinces, municipalities and autonomous regions in China. Pioneer's business headquarters are located in Shanghai, the commercial center of China, and its logistics hub is located in Hubei province, one of the best connected and centrally located areas in the country. Pioneer is a young and dynamic company that embraces both traditional Chinese values and Western business culture and practices. Pioneer's business partners choose it because of its strong track record, impressive service network, diligent care for quality, and clear communications. Given the rapid growth of the Chinese economy and the rising demand for high-quality healthcare products, Pioneer is adding more pharmaceutical products and medical devices to its portfolio and will continue to expand its marketing, promotion and channel management service network. Pioneer is dedicated to improving the quality of human life by marketing, promoting and selling high-quality pharmaceutical products and medical devices in China and certain Southeast Asia regions. Please visit Pioneer Pharma's website: www.pioneer-pharma.com

Forward-looking Statements

This release contains forward-looking statements and opinions, which are based upon management's current expectations, assumptions, estimates, projections and beliefs. These statements include, but are not limited to, statements regarding the general use of antibiotics in the United States and NovaBay's possible effect on that use. The words "look forward", "up-coming" and "believe" are intended to identify these forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or achievements to be materially different and adverse from those expressed in or implied by the forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, risks and uncertainties relating to difficulties or delays in development, clinical trial, regulatory approval, production and marketing of the company's product candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the product candidates, the uncertainty of patent protection for the company's intellectual property or trade secrets, the company's ability to obtain additional financing as necessary and unanticipated research and development and other costs. Other risks relating to NovaBay, including risks that could cause results to differ materially from those projected in the forward-looking statements in this press release, are detailed in NovaBay's latest Form 10-K and Form 10-Q filings with the Securities and Exchange Commission, especially under the heading "Risk Factors." The forward-looking statements in this release speak only as of this date, and NovaBay disclaims any intent or obligation to revise or update publicly any forward-looking statement except as required by law.