NovaBay Issues Statement Regarding Market Activity

NovaBay® Pharmaceuticals, Inc.

today issued the following statement: In view of the unusual market activity in the company's stock on February 28, 2012, NYSE Amex contacted NovaBay in accordance with its usual practice, requiring that a press release be issued. NovaBay has not commented on unusual market activity historically, and in accordance with the company's public disclosure policy, has declined to comment on yesterday's trading. The Company also reiterated that it plans to continue its track record of updating its shareholders with material news as appropriate in a timely manner.