Oculus Innovative Sciences, Inc.

Nasdaq: OCLS
Investor Fact Sheet
A New Era In Anti-Infectives October 2008

Company Profile RECENT NEWS

Oculus Innovative Sciences is a biopharmaceutical company focused on developing and commercializing its September 11, 2008 Launches Dermacyn®
patented topical Microcyn® Technology platform, with the goal of becoming the standard of care for treatment of in China via Key Distributor Sinopharm
chronic and acute wounds. To leverage the advantages of this unique antimicrobial and therapeutic technology,
September 9, 2008 Accelerates Global
the company is pursuing parallel growth strategies of generating revenue growth through commercialization Commercialization Initiative and Reduces
in regions of the world where regulatory approvals have been secured. As part of the company’s dual-prong Planned Expenses by $50 Million Over
strategy, it is also pursuing a U.S. drug approval using a different formulation of the Microcyn Technology. The Four Years
company intends to secure a partner that will assume clinical, regulatory, and commercial responsibilities along September 4, 2008 Holds Successful End-
with costs for the drug formulation approval. of-Phase II Meeting with FDA

Commercial Activity
August 5, 2008 Reports 59% Increase in
First Quarter Product Revenue
Oculus is generating revenue through established and scaleable commercial operations, including manufacturing
July 1, 2008 Positive Results from
in Mexico and The Netherlands, and product sales in the U.S., EU, Mexico, China and India; the company Abstract Evaluating the Use of Microcyn®
recently launched a Microcyn-based product in China through its key distributor Sinopharm to hospitals in 10 Technology in Treatment of Atopic
provinces. Dermatitis

June 23, 2008 Agreement With Bayer

Oculus currently sells in the following geographies and channels: (Sichuan) Animal Health Co. Ltd. for
Development of Microcyn® Technology
Use in Chinese Animal Market
United States: On Oct. 22, 2008, Oculus launched the Microcyn Technology for the U.S. podiatry market and
is also partnered with Union Springs Pharmaceuticals which is marketing an OTC first responder pen delivery June 19, 2008 Agreement with Bayer
device. Australia Limited for Development of
Microcyn® Technology Use in Australian
Animal Market
Mexico: Dedicated contract sales force focusing on retail pharmacies; volume at 25,000 units per month (240ml
bottles); Oculus also has a commercial scale manufacturing operation in Mexico. MANAGEMENT
India: Partnered with Alkem Labs, 5th largest pharma company in India; volume at 30,000 units per month Hoji Alimi
Chairman, CEO & President
(100ml bottle). Founder

China: Distribution agreement with China Bao Tai (CBT); secured marketing approval from Chinese State FDA; Robert Miller
Chief Financial Officer
CBT has licensed Sinopharm (hospitals); Lianhua Supermarkets (retail);initial shipments were made in July 2008
with product introduction initiated in September 2008. Jim Schutz
Vice President, Corporate Development,
General Counsel
Europe: Oculus currently has distribution partners in Slovakia, Italy, The Netherlands and Germany; and is
seeking additional partners across the EU; Oculus also has a commercial scale manufacturing operation in The Bruce Thornton
Netherlands. Vice President, International
Operations & Sales

Growth Strategy ANALYST COVERAGE

The company expects to achieve significant revenue growth through:
• Expansion of sales channels Rodman & Renshaw
• Addition of new products addressing new markets Elemer Piros, Ph.D.
Senior Biotechnology Analyst
• Identification and approval of additional treatment indications and applications (212) 430-1754
Roth Capital
Near-term growth opportunities include the introduction of two new products: Scott Henry
Head of Pharmaceutical
Research & Senior Research
Microcyn-Gel: This product expands upon the Microcyn liquid market, addressing the large topical ointment Analyst
and gel market. In addition to delivering an antimicrobial to inhibit pathogen growth, it maintains a moist (781) 749-0044
wound environment conducive to healing. Microcyn Gel is expected to be available for international channels in
late 2009.

Microcyn Delivery Device: This breakthrough technology is capable of monitoring a wound environment
and delivering Microcyn as needed; it also incorporates a vacuum process that transports away organic load,
lessening the need to clean and debride the wound. Oculus filed a patent for this product in June 2008, and
expects to achieve commercialization in early 2010.

Microcyn Technology also has the potential to address opportunities in the respiratory, podiatry, eye care,
dermatology and dental markets. Oculus is seeking and evaluating potential new partnerships in these areas.
Except for historical information herein, some matters set forth in this fact sheet are forward-looking within the meaning of the “safe harbor” provisions of the
Private Securities Litigation Reform Act of 1995, including statements about our ability to replicate the results of the test in clinical trials, if at all, or for such
trials or other tests to establish the conclusions suggested by the results of the test. These forward-looking statements are identified by the use of words
such as “intends,” “enabling,” “initiate,” “designed,” “to provide,” “will pursue,” and “expects,” among others. These forward-looking statements
are based on Oculus Innovative Sciences, Inc.’s current expectations. Investors are cautioned that such forward-looking statements in this fact
sheet are subject to certain risks and uncertainties inherent in the Company’s business including risks inherent in the development and
commercialization of potential products, the risk that scientific data may not be sufficient to meet regulatory standards or receipt of
required regulatory clearances or approvals, risks that revenues will not reach expected levels, the Company’s future capital
needs, and its ability to obtain additional funding and other risks detailed from time to time in the Company’s filings with
the Securities and Exchange Commission including the quarterly report on Form 10 -Q and annual report on
Form 10 -K. Oculus Innovative Sciences disclaims any obligation to update these forward-looking
statements.

1129 North McDowell Blvd., Petaluma, California 94954 USA • tel: (707) 283-0550 • fax: (707) 283-0551 • website: www.oculusis.com
 A New Era In Anti-Infectives

MARKET PROFILE (As of 10/17/08)

Microcyn® Technology Ticker Symbol (NASDAQ) OCLS
Oculus’ principal platform, Microcyn Technology, is capable of producing a potent broad-spectrum
Price $1.49
antimicrobial designed to treat a wide range of pathogens, including viruses, fungi, spores and Shares Outstanding 15.9M
antibiotic-resistant strains of bacteria such as Methicillin-resistant Staphylococcus aureus (MRSA) and Market Cap $23.7M
Vancomycin-resistant Enterococcus (VRE), all of which cause disease or inhibit the healing in both acute and 52 Week High $7.86
chronic wounds. Microcyn is a non-irritating, shelf-stable solution containing oxychlorine compounds; its 52 Week Low $1.32
safety profile has been established as comparable to saline through treatment of more than 750,000 patients to
date, and efficacy has been reinforced through 25 clinical studies. FINANCIALS
Microcyn has received European Union certification for wound cleaning and reduction of microbial load, First Fiscal Quarter 2009 Results,
various drug approvals in Mexico and India, as well as three FDA 510(k) clearances as a medical device in ending June 30, 2008:
the United States. In December 2008, China Bao Tai, Oculus’ partner in China, completed two controlled
• Revenues of $1.2 million in Q1 FY 2009,
and randomized trials in China for treatment of chronic wounds and burns. In March 2008, the Chinese compared to $866,000 in Q1 FY 2008
SFDA approved Microcyn Technology for treatment of various acute and chronic wounds including ulcers,
cuts, contusions and burns. This approval allows Oculus’ Chinese partner to market Microcyn Technology • Net loss of $5.2 million in Q1 FY 2009,
as a technology that provides a moist environment for wounds and accelerates wound healing through the compared to $5.0 million in Q1 FY 2008
reduction of microorganisms in wounds.
• Cash and cash equivalents of $11.5 million
U.S. Clinical Phase II trial
at June 30, 2008

In December 2007, Oculus completed a Phase II Clinical Trial with Microcyn for the treatment of diabetic • International operating expenses down $4
foot ulcers. Positive data was announced in March 2008 (see below). Oculus held a successful End-of-Phase II million and Mexico operations at
meeting with the FDA on August 29, 2008 at which time the FDA agreed that Oculus may move forward into breakeven in last month of FY 2008
the pivotal phase of its U.S. clinical program. Oculus intends to pursue ongoing development of the Microcyn
Technology as a drug in the United States with a corporate partner. PARTNERS
In the clinically evaluable population of the study (those that complied with the protocol requirements for the India: Alkem Laboratories
duration of the study), the clinical success rate at visit 3 (End of Therapy) for Microcyn-alone-treated patients
Australia: Bayer (Animal Health)
was 77.8% compared to 61.1% for the levofloxacin plus saline treated patients. The clinical success rate at visit
4 (Test of Cure) for Microcyn-alone-treated patients increased to 93.3% compared to 56.3% for the levofloxacin China: China Bao Tai (Sinopharm, Lianhua
plus saline-treated patients (p= 0.033). This study was not statistically powered but the high clinical success Supermarket Holdings), Bayer (Animal
rate (93.3%) and the p-value (0.033) would suggest the difference is meaningfully positive for the Microcyn- Health)
treated patients. No serious drug-related adverse events were reported in any of the three treatment arms.
United States: Union Springs
Pharmaceuticals (OTC application)

The company intends to seek partnerships

and accelerate commercialization of this
technology in other applications including
ophthalmology, dermatology,
and respiratory, amongst others.

CONTACTS
Dan McFadden
Before Microcyn Microcyn treatment after three weeks Complete healing without skin graft +1 (425) 836-3103
dmcfadden@oculusis.com

How Microcyn Works Don Markley

Lippert/Heilshorn &
Microcyn is capable of producing a pH-neutral, non-irritating solution of shelf-stable oxychlorine compounds
Associates, Inc.
that replicate the action of the body’s neutrophils. Neutrophils are the most abundant type of white blood +1 (310) 691-7100
cells in humans and form an integral part of the immune system.

The mechanism of action of oxychlorine compounds against single-cell organisms, due to their reactivity with
lipids and proteins in cell membranes, can cause these organisms to rupture and die rapidly as demonstrated
via in vitro test models.

)NACTIVE)NGREDIENTS !CTIVE)NGREDIENTS Meanwhile, the product remains biocompatible

&REE!VAILABLE#LORINE to mammalian cells, which have evolved
(/
(/#LPOTENTANTIMICROBIALAGENT mechanisms to tolerate and regulate the active
/THERCOMPOUNDSAUGMENTPROCESS
ingredients in Microcyn. Pathogens lack this
capability.
7ATER
(/#L #L/
It has also been reported in research studies
(YPOCHLOROUS (YPOCHLORITE
that Microcyn induces vasodialation and
#L #L/ !CID has demonstrated biocompatibility
&!#PPM
with fibroblast and granulation
#HLORIDEPPM #HLORATEPPM tissue.
2008-October-21

1129 North McDowell Blvd., Petaluma, California 94954 USA • tel: (707) 283-0550 • fax: (707) 283-0551 • website: www.oculusis.com