Prospectus regarding Oasmia Pharmaceutical's rights issue is now available

PRESS RELEASE                                             November 1 2010

Prospectus regarding Oasmia Pharmaceutical's rights issue is now available      

The Board of Directors of Oasmia Pharmaceutical AB (publ) (“Oasmia”) has now    
prepared the prospectus for the purpose of the Rights Issue, with preferential  
rights for the shareholders, which was announced on October 19, 2010.           

The prospectus has been approved and registered at the Swedish Financial        
Supervisory Authority (Swe. Finansinspektionen) and is now available on Oasmia's
website www.oasmia.com, Carnegie Investment Bank AB's website www.carnegie.se   
and the Swedish Financial Supervisory Authority's website www.fi.se.            

The prospectus will be distributed on or about November 1 2010 to those of      
Oasmia's shareholders which are registered in their own name on the record date 
28 October 2010. The prospectus can also be ordered from Carnegie Investment    
Bank AB (during business hours) by telephoning +46 (0)8 588 694 84.             

For further information please contact Julian Aleksov, CEO, telephone +46 (0)18 
50 54 40.                                                                       

For more information regarding Oasmia, please visit www.oasmia.com.             


IMPORTANT INFORMATION                                                           
The information in this press release is not intended, directly or indirectly,  
for release, publication or distribution, in or into the United States, Canada, 
Ireland, Switzerland, South Africa, Japan, Hong Kong, Singapore, Australia or   
New Zeeland.                                                                    

The information in this press release does not and shall not be deemed to       
constitute an offer to sell, or a solicitation to buy, nor shall there be any   
sale of the securities referred to herein in any jurisdiction in which such     
offer, solicitation or sale would require preparation of further prospectuses or
other offer documentation, or would be unlawful prior to registration or absent 
an applicable exemption from registration requirements under the securities laws
of any such jurisdiction.                                                       

The information in this press release is not, and does not constitute or form a 
part of any offer or solicitation to buy or to subscribe for securities in the  
United States. The securities mentioned herein have not been, and will not be,  
registered under the United States Securities Act of 1933 (the “Securities      
Act”). The securities mentioned herein may not be offered or sold in the United 
States except pursuant to an exemption from the registration requirements of the
Securities Act. There will be no public offering of securities in the United    
States.                                                                         

The information in this press release may not be forwarded or distributed to any
other person and may not be reproduced in any manner whatsoever. Any            
transmission, forwarding, distribution, reproduction, or disclosure of this     
information, in whole or in part, is unauthorized. Failure to comply with this  
directive may result in a violation of the Securities Act or the applicable laws
of other jurisdictions. The above information has been made public by Oasmia in 
accordance with the Securities Market Act and/or the Financial Instruments      
Trading Act. The information was published at 08.00 AM CET on November 1, 2010. 
Oasmia has not decided to offer shares or subscription rights to the public in  
any other member state within the European Economic Area, with the exception of 
Sweden. Within such member states of the European Economic Area (except for     
Sweden) which have implemented the Prospectus Directive (a “Relevant Member     
State”), Oasmia has taken no action at the date of this prospectus to offer     
shares or subscription rights to the public, which might require the prospectus 
to be published in any Relevant Member State. As a consequence thereof, the     
share or subscription rights may only be offered in Relevant Member States:     
(a) to legal entities which are authorised or permitted to operate in the       
financial markets or, if they do not have such authorisation or permission,     
whose corporate purpose is solely to invest in securities;                      
(b) to a legal entity that meets two or more of the following criteria: (1) an  
average of at least 250 employees during the last financial year; (2) a total   
balance sheet of more than Euro 43 million and (3) an annual net turnover of    
more than Euro 50 million, according to its latest annual or consolidated       
accounts; or (c) to such person, investor or other group of persons that an
exception from the prospectus requirement exists in accordance with Article
3(2) in the 
Prospectus Directive.                                                           

For purposes hereof, the expression “an offer of shares or subscription rights  
to the public” in any Relevant Member State shall mean the communication, in any
form, of sufficient information about the terms of the offer and the shares or  
subscription rights that are offered so that an investor can decide whether to  
buy securities, as this can be varied in any such Relevant Member State by any  
measure implementing the Prospectus Directive in such Member State, and the     
expression “the Prospectus Directive” means Directive 2003/71/EC including all  
implementation measures in each respective Relevant Member State.               

In connection with the Rights Issue, Carnegie Investment Bank or a              
representative for Carnegie Investment Bank may act as a stabilisation manager  
and effect transactions to support the exchange price or market price of the    
Company's shares, the subscription rights, BTAs or the new shares to balance any
sales pressure. Possible stabilisation will be conducted in accordance with     
Regulation (EC) number 2273/2003.                                               

This press release may contain forward-looking information. Forward-looking     
information can be identified as information that does not exclusively refer to 
the past or current circumstances, or information that may contain words such as
“expected”, “believed”, “estimated”, “planned”, “projected”, or “forecast”.     
These statements may involve uncertainties and risks regarding, for example,    
product demand and market acceptance, the effect of economic conditions, impact 
of competitive products and pricing, currency exchange rates and other risks.   
These forward-looking statements reflect the current views of Oasmia's Board of 
Directors and management, based on information available to them today, and are 
based on a number of assumptions, which are deemed reasonable, but are          
inherently uncertain and difficult to predict. Actual results may differ        
materially from those expressed or assumed in this forward-looking information. 
Oasmia does not intend, nor undertakes any duty, to update any such             
forward-looking statements.