NovaBay Informs Investors of Inaccuracies on Yahoo! Finance

By February 5, 2008

Emeryville, CA—February 05, 2008–NovaBay Pharmaceuticals, Inc. (AMEX & TSX: NBY, http://novabaypharma.com), a biopharmaceutical company developing products for the treatment or prevention of a wide range of bacterial and viral infections, provides corrections to inaccuracies listed on Yahoo! Finance:

* NovaBay’s 52-week high [stock/closing sales] price is $4.25 per share, as opposed to the $22.18 per share reported on Yahoo! Finance.

* In addition, certain reports included in the “Reports” section of the Yahoo! Finance website are unrelated to NovaBay; although linked to the “NBY” symbol, these reports are regarding other companies.

After repeated attempts by NovaBay to have Yahoo! Finance and its vendors correct the 52-week range and remove links to the mislabeled research reports, the information remains inaccurate. Until Yahoo! Finance corrects the inaccuracies, please refer to the American Stock Exchange or Google Finance websites.

About NovaBay Pharmaceuticals, Inc.

NovaBay Pharmaceuticals, Inc. is a biopharmaceutical company focused on developing innovative product candidates for the treatment or prevention of a wide range of infections in hospital and non-hospital environments. NovaBay has discovered and is developing a class of non-antibiotic anti-infective compounds, which it has named Aganocides, based upon small molecules generated by white blood cells that defend the body against invading pathogens. NovaBay believes that the Aganocide® compounds could form a platform on which to create a variety of products to address different needs in the prevention and treatment of bacterial, fungal and viral infections, including methicillin-resistant Staphylococcus aureus (MRSA). NovaBay has entered into a licensing and research collaboration agreement with an affiliate of Alcon, Inc. for use of the Aganocide® compounds in eye, ear and sinus infections and in contact lens solutions. In addition to its Aganocide® compounds, NovaBay is developing NVC-101, which it refers to as NeutroPhase, and has entered into a license agreement with an affiliate of Kinetic Concepts, Inc. for the use of NeutroPhase in wound care applications.

NovaBay™, AgaNase™, Aganocide® and NeutroPhase™ are trademarks of NovaBay Pharmaceuticals, Inc. All other trademarks and trade names are the property of their respective owners.

For more information visit the company’s website at:www.novabaypharma.com

Forward-Looking Statements

This release contains forward-looking statements, which are based upon management’s current expectations, assumptions, estimates, projections and beliefs. These statements include, but are not limited to, statements regarding the development and potential benefits of, and the market opportunities for, NovaBay’s product candidates. 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 discovery, development, testing, 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. 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.

Contact:

Investor Relations:
The Investor Relations Group
Adam Holdsworth / Rachel Colgate / Erica Ruderman
212-825-3210

Or

Media Relations:
Janet Vasquez / Laura Colontrelle
212-825-3210

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