NovaBay Pharmaceuticals Announces $2.83 Million Private Placement Investors include insiders Pioneer Pharma and NovaBay Chairman and Interim President and CEO Mark M. Sieczkarek EMERYVILLE, Calif. – February 24, 2016 -NovaBay®Pharmaceuticals, Inc.(NYSE MKT: NBY) a biopharmaceutical company focusing on commercializing its Avenova® Lid and Lash Cleanser for the domestic eye care market, announces that it has entered into three securities purchase agreements for the sale of 1,518,567 shares of common stock for approximately $2.83 million. Investors in the private placement include Mr. Jian Ping Fu and Pioneer Pharma (Singapore) Pte. Ltd. Mr. Fu is President of Greenwood Capital, an Australian investment company with a portfolio spanning property, health centers, Australian food exports and cultural exchange. Greenwood Capital recently agreed to sponsorship deals with the reigning Australian Football League (AFL) champions Melbourne FC and A-League champions Melbourne Victory. Pioneer Pharma (Singapore) Pte. Ltd., together with its affiliates, is NovaBay’s largest shareholder. China Kington Asset Management Co. Ltd. acted as the sole placement agent for the securities purchase agreements with Mr. Fu and Pioneer Pharma (Singapore) Pte. Ltd. NovaBay Chairman and Interim President and CEO Mark M. Sieczkarek also participated in the private placement. “Avenova’s strong growth trajectory with record quarterly sales throughout 2015 gives us confidence in the company’s prospects for success, and we support management’s goals of driving revenues, managing expenses and moving toward profitability,” said Eric Wu, Partner and Senior Vice President of China Kington Asset Management Co. Ltd. “We are yet again affirming our intention to be the company’s long-term financing partner.” On January 11, 2016, NovaBay announced it expected fourth quarter 2015 Avenova sales to exceed $1.5 million, an increase of 41% from the third quarter, and full year 2015 Avenova sales to approach $4 million. Management also affirmed its goal of reaching positive cash flow from operations in late 2016. NovaBay expects to report financial results for the 2015 fourth quarter and full year and to hold an investment community conference call in early March 2016. The foregoing securities were offered in the private placement and have not been registered under the Securities Act of 1933, as amended, or under applicable state securities laws. Accordingly, these securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Securities Act and such applicable state securities laws. About NovaBay Pharmaceuticals, Inc.: Going Beyond Antibiotics NovaBay Pharmaceuticals is a biopharmaceutical company focusing on the commercialization of prescription Avenova® Lid and Lash Cleanser for the eye care market. Avenova is formulated with Neutrox™, which is cleared by the U.S. Food and Drug Administration (FDA) as a 510(k) medical device. Neutrox is NovaBay’s pure hypochlorous acid. Laboratory tests show that hypochlorous acid has potent antimicrobial activity in solution yet is non-toxic to mammalian cells and also neutralizes bacterial toxins. Avenova is marketed to optometrists and ophthalmologists throughout the U.S. by NovaBay’s direct medical salesforce. It is accessible from more than 90% of retail pharmacies in the U.S. through agreements with McKesson Corporation, Cardinal Health and AmeriSource Bergen. | 
