Oculus Innovative Sciences, Inc. to Raise $3.1 Million in Registered Direct Offering

PETALUMA, Calif., April 23, 2012 (GLOBE NEWSWIRE) -- Oculus Innovative Sciences, Inc. (Nasdaq:OCLS) announced today that it has entered into a definitive agreement with a single life science-focused institutional investor for the purchase of a combination of 1) 1,000 shares of its new Series A Convertible Preferred Stock at $1,000 per share, which are convertible into 1.1 million shares of its common stock and 2) 2.4 million of its common shares at $0.90 per share and 3) a 2.5-year warrant to purchase up to approximately 3.5 million of common stock at an exercise price of $1.18 per share, which is not exercisable for six months. The Series A Convertible Preferred has no dividend and is perpetual. Oculus Innovative Sciences, Inc will receive approximately $3.1 million in gross proceeds from the offering. The offering is expected to close on or about April 24, 2012, subject to customary closing conditions. Net proceeds from the offering will be used to fund the Company's clinical and regulatory programs for "Scar Reduction" indication and initiation of additional regulatory filings to expand Company's antimicrobial indication with the FDA in the surgical market as well as working capital needs and for general corporate purposes.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq:RODM), acted as the exclusive placement agent for the offering.

The proposed public offering is being made pursuant to an effective registration statement, and may be made only by means of a prospectus and prospectus supplement. A copy of the prospectus supplement relating to the common stock and warrants can be obtained from Rodman & Renshaw LLC, 1251 Avenue of the Americas, 20^th Floor, New York, NY 10020, or by calling 212-356-0549 or e-mailing placements@rodm.com. An electronic copy of the prospectus supplement will also be available on the website of the Securities and Exchange Commission (the "SEC") at http://www.sec.gov. This press release is neither an offer to sell, nor a solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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, 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 "entered," "will receive," and "initiation," 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 and Microcyn are trademarks or registered trademarks 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 April 23, 2012