NovaBay Names Keith Bley as Senior Vice President of Product Development

Behzad Khosrovi Retires After Ten-Year Career at NovaBay

EMERYVILLE, Calif., March 11, 2013 (GLOBE NEWSWIRE) -- NovaBay^® Pharmaceuticals, Inc. (NYSE MKT:NBY), a biotechnology company focused on addressing the large unmet therapeutic needs of the global anti-infective market with first-in-class compounds such as its proprietary Aganocides^®, today announced that Keith R. Bley, Ph.D., has joined NovaBay as Senior Vice President of Product Development, effective March 4^th 2013.

Dr. Bley has more than 20 years of experience in the pharmaceutical industry, management positions with increasing responsibility in research and product development.

Before joining NovaBay, Dr. Bley worked as consultant to various pharmaceutical companies in the San Francisco Bay Area, assisting these companies with a wide range of drug development activities. Prior to his consulting work, Dr. Bley was the Senior Vice President for Nonclinical Research and Development at NeurogesX, Inc. for over ten years. While at NeurogesX, Dr. Bley supported all phases of drug development and built a thorough knowledge of FDA regulations and international regulatory requirements.

Prior to his work at NeurogesX, Dr. Bley worked as Research Manager for Roche Pharmaceuticals and Syntex Corporation.

Dr. Bley received his Ph.D. in Cellular and Molecular Physiology from Yale University. He also earned a masters degree in philosophy from Columbia University and his Bachelors in Philosophy (with Honors) from the Catholic University of America in Washington, D.C.

"We are very excited to welcome Keith on board to NovaBay," said Dr. Ron Najafi, Chairman and Chief Executive Officer. "We believe he brings valuable regulatory expertise both in the U.S. and abroad. Keith has worked on topical therapies, and understands the unique challenge they can represent. We are confident that he will contribute significantly to the NovaBay management team as we and our partners continue moving our lead Aganocide compound, NVC-422 or auriclosene, through three Phase 2 trials."

"I am pleased to join NovaBay at this exciting time," said Dr. Bley. "There has been tremendous progress in each of the Company's business units, and I am excited to contribute to continuing growth of the business."

"On behalf of the Board and management team, I'd like to extend my appreciation to Dr. Behzad Khosrovi, for his years of dedication to NovaBay," concluded Dr. Najafi. "His vision, leadership and achievements have helped bring NovaBay to where it is today, and we will miss him."

About NovaBay Pharmaceuticals, Inc.

Going Beyond Antibiotics

NovaBay Pharmaceuticals is a biotechnology company focused on addressing the large unmet therapeutic needs of the global anti-infective market with its two distinct categories of compounds, Aganocides^® and NeutroPhase^® Skin and Wound Cleanser. The Company's four core business units, DermaBay, UroBay, EyeBay and MediBay, are developing treatments that tackle infections in the dermatology, urology, ophthalmology, and wound care areas.

Aganocide^® Compounds

NovaBay's first-in-class Aganocide compounds, led by NVC-422, are patented, topical antimicrobials with a broad spectrum of activity against bacteria, viruses and fungi. Mimicking the mechanism of action that human white blood cells use against infections, Aganocides are not subject to bacterial or fungal resistance, which has been demonstrated in in-vitro and in-vivo studies. Having demonstrated clinical efficacy in Phase 2 proof-of-concept clinical studies, NVC-422 is suited to treat and prevent a wide range of local, non-systemic infections. NovaBay's clinical development activities are focused on three disease areas:

Dermatology – Partnered with Galderma, a leading dermatology company, to develop a formulation of NVC-422 for treatment of highly contagious skin infection, impetigo, which occurs most commonly in children. Enrollment into a global Phase 2b clinical study has begun and clinical data results are expected in the second half of 2013.

Ophthalmology – NovaBay is developing an eye drop formulation of NVC-422 for treating adenoviral conjunctivitis, a highly contagious viral eye infection for which there is no approved acute treatment. Enrollment into a global Phase 2b clinical study has begun, and clinical data results are expected in the second half of 2013.

Urology – NovaBay's urinary catheter irrigation solution containing NVC-422 is currently in a Phase 2b study, with the goal of reducing the incidence of urinary catheter blockage and encrustation (UCBE) and associated urinary tract infections. The Company reported positive data from the Phase 2a study and is evaluating the effect of an alternate more potent formulation of NVC-422 in Phase 2b. Results are expected in the first half of 2013.

NeutroPhase^®

NeutroPhase is the only pure hypochlorous acid (HOCI) skin and wound cleanser cleared by the U.S. Food and Drug Administration (FDA) to target the six-million-patient U.S. market of chronic non-healing wounds, such as pressure, venous stasis and diabetic ulcers. The saline-based solution is the only wound cleanser on the market to include a stabilized, pure form of HOCl shown in studies to kill bacteria in solution, including flesh-eating bacteria. For additional information, visit: www.neutrophase.com.

Forward-Looking Statements

This release contains forward-looking statements, which are based upon management's current expectations, assumptions, estimates, projections and beliefs. 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 and Aganocide compounds, 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 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.