Rozsnyai Director of Intellectual Property and Licensing

It is often a fundamental re-examination of the business itself tofully understand the organizational and cultural transition issues that arerequired for a company shifting from a product- to services-based focus. Read this report to learn: What are the most important business and technology model considerations andchallenges when adopting a SaaS or Cloud Computing strategy Can hybrid models work How viable are interim managed services-led andvirtualization-driven approaches What are the best strategies to avoid revenue cannibalization What strategies and best practices exist to successfully transitionproduct-centric organizations and cultures to the services-led world of SaaS andCloud Computing How should ISVs identify, assess and select potential partners for winningSaaS and Cloud strategiesKey Topics Covered: Introduction: The Transition from Software to Service Business A Transition to New Business Business Transitions: Marketing, Sales & Channels Business Transitions: Finance Financing the Transition Internal Financial Process Redesign Impact on ISV Market Value Business Transitions: Operational IT Infrastructure Transitions Hosting considerations Multi-Tenancy vs. Multi-instance via Virtualization What is Multi-Tenancy Three Tenancy Models Data Control and Hybrid Tenancy Virtualization Alternatives to Multi-Tenancy Conclusions and Recommendations For Marketers For Sales Executives For Channel/Distribution Executives For CTOs and Product Executives For CIOs and IT Executives For CFOs and Financial Executives Appendix List of Figures and SidebarsFor more information visit http:// WoodSenior Fax from USA: 646-607-1907Fax from rest of the world: 353-1-481-1716 Copyright Business Wire 2009. (AMEX: NBY, ) reports thatthe United States Patent and Trademark Office has approved the issuance of U.S.Patent No. 7,462,361 to NovaBay for novel Aganocide compounds including itscurrent lead compound, NVC-422 (N,N-dichloro-2,2-dimethyltaurine) The patentwill expire on April 24, 2026. "The issuance of this patent-the first one issued for the Aganocidecompounds-significantly strengthens our patent portfolio, and represents avaluable asset for both NovaBay and its partners," commented Lawrence F.Rozsnyai, Director of Intellectual Property and Licensing.

"We are continuing tosecure and expand our proprietary position in the Aganocide compounds andrelated antimicrobial technologies." NovaBay has recently filed additional patent applications including ones forcompositions of matter of additional Aganocide compounds, methods of use andformulations, and is preparing further applications in other areas. Similarpatent filings have been made in all major international countries that havesignificant pharmaceutical markets "The validation by the U.S. Patent Office of the novelty of NVC-422 is yet onemore important step in bringing this molecule to the market for the treatmentand prevention of infectious diseases-a critical need as the excessive use ofantibiotics is leading to a dramatic increase in the number of patients withantibiotic-resistant diseases," said Dr. Ron Najafi, NovaBays Chairman and CEO."We expect that the Aganocide compounds should play a leading role as first linetherapies in many indications, since they do not cause microbes to developresistance." According to the Centers for Disease Control and Prevention (CDC), "AntibioticResistance has been called one of the worlds most pressing problems. Over thelast decade, almost every type of bacteria has become stronger and lessresponsive to antibiotic treatment when it is really needed." NovaBays Aganocide CompoundsThe Aganocide compounds are novel N-chlorinated antimicrobial moleculesdeveloped by NovaBay.

They are designed to mimic the antimicrobial action ofsmall molecules produced naturally by white blood cells. The naturally producedmolecules are highly effective against all bacteria, viruses and fungi, but areproduced and used by the body "on demand" and do not have the chemical stabilityto permit their use as pharmaceutical products. In laboratory testing, theAganocide molecules maintain the efficacy and safety of the natural moleculesbut are more stable, enabling their potential use as potent antimicrobialproducts. NVC-422NVC-422 is the lead molecule in the Aganocide class and is being activelydeveloped for several human indications in several clinical and pre-clinicalprograms. NovaBay has licensed the use of NVC-422 and other Aganocide compounds forspecific uses to an affiliate of Alcon Inc..

These uses include the treatment ofviral and bacterial diseases of the eye, bacterial and fungal diseases of theear and infections of the sinus. In addition, NovaBay is collaborating withAlcon in the development of Aganocide compounds for use in advanced contact lensdisinfecting solutions. NovaBay is in Phase II development for use of NVC-422 in infections of the nasalpassage and for the prevention and/or treatment of Catheter-Associated UrinaryTract Infections (CAUTI). NovaBay expects to file an Investigational New Drugapplication in 2009 for a novel formulation of NVC-422 for use in Impetigo andother skin infections (including those caused by MRSA).