Oculus Innovative Sciences, Inc. to Raise Approximately $2.0 Million in Registered Direct Offering

PETALUMA, Calif., Dec. 23, 2011 (GLOBE NEWSWIRE) -- Oculus Innovative Sciences, Inc. (Nasdaq:OCLS) today announced it has received commitments from certain institutional and accredited investors to purchase approximately $2.0 million of the Company's securities in a registered direct offering.  Oculus intends to use the net proceeds from the offering for general corporate purposes including several important growth opportunities.

In the offering, Oculus intends to issue approximately 1.8 million shares of common stock at a price of $1.15 per share with no warrant coverage.  The offering is expected to close on or about December 28, 2011, subject to satisfaction of customary closing conditions.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq:RODM) acted as the exclusive placement agent for the offering. Oculus retained Stonegate Securities as an advisor in connection with the offering.

The securities described above are being offered pursuant to a shelf registration statement (File No. 333-171411), that was declared effective by the United States Securities and Exchange Commission ("SEC") on May 3, 2011.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities cannot be sold in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state or jurisdiction.  Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement.  When filed with the SEC, copies of the prospectus supplement and the accompanying base prospectus relating to this offering may be obtained at the SEC's website at http://www.sec.gov.

About Oculus Innovative Sciences

Oculus Innovative Sciences is a commercial healthcare company that designs, produces and markets innovative, safe and effective healthcare products.  Oculus is pioneering innovative solutions in multiple markets including dermatology, oral care, surgical, wound care, animal healthcare and others, and has commercialized products in the United States, Europe, India, China and Mexico and select Middle East countries.  The company's headquarters are in Petaluma, California, with manufacturing operations in the United States and Latin America.  More information can be found at www.oculusis.com.

Forward-Looking Statements

Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company's commercial and technology progress and future financial performance.  These forward-looking statements are identified by the use of words such as "expects" and "intends," among others.  Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company's business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the Company's patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the Company's products will not be as large as expected, the Company's products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to fund further development and clinical studies, the Company may not meet its future capital needs, and its ability to obtain additional funding, as well as uncertainties relative to varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission including the annual report on Form 10-K for the year ended March 31, 2011.  Oculus Innovative Sciences disclaims any obligation to update these forward-looking statements except as required by law.

Oculus is a registered trademark of Oculus Innovative Sciences, Inc.  All other trademarks and service marks are the property of their respective owners.

CONTACT: Oculus Innovative Sciences, Inc.
         Dan McFadden
         Director of Marketing/Communications
         (425) 753-2105
         dmcfadden@oculusis.com

Released December 23, 2011