Ondine Receives Letters of Intent for Sale of Majority Interest in Sinusitis Subsidiary

Ondine Biopharma Corporation (TSX:OBP)(AIM:OBP) today announced that it has
entered into non-binding letters of intent (the "LOIs") with a syndicate of
private equity investors based in Europe to purchase a majority position in
Ondine's to be formed subsidiary, Sinuwave Technologies Corporation
("Sinuwave"), which will be dedicated to the development of photodisinfection
solutions for the chronic sinusitis market. Subject to the execution of
definitive agreements and regulatory approvals, the proposed transaction would
provide Ondine with continued economic benefits from the sinusitis application
as well as cash flows to be used for the development of expanded applications of
the Company's photodynamic platform technologies.


Under the terms of the LOIs, the syndicate would receive a 70% ownership
interest in Sinuwave in return for an upfront cash payment to Ondine of
US$600,000 and an initial private placement into Sinuwave of US$500,000. The
syndicate would also commit to provide Sinuwave Technologies Corporation with
additional funding of up to US$1 million by way of equity purchases over a 2
year period in 2 tranches. In addition, the syndicate would have the right to
invest a further $1 million in Sinuwave on exercise of share purchase warrants.


The parties contemplate that Ondine would develop and manufacture any products
created under this initiative, and would be entitled to ongoing management
consulting and product development fees as well as royalties and manufacturing
margins. Ondine would also be entitled to additional payments totaling up to
US$250,000 based on the achievement of certain regulatory milestones.


"This proposed transaction will enable us to focus on this important new
application of our platform photodisinfection technology," said Carolyn Cross,
Chairman & CEO of Ondine Biopharma Corporation. "The proven antimicrobial and
anti-inflammatory benefits of Ondine's non-antibiotic photodisinfection
technology have the potential to provide substantial relief to patients who
suffer from chronic sinusitis. Sinusitis represents a very large market,
affecting over 43 million people in North America alone. There are over 450,000
patients in North America for whom sinus surgeries and antibiotics have been
unsuccessful. As global leaders in photodisinfection, we have the technology and
the expertise to create a new class of products that we believe can better serve
these patients. By establishing a separate company dedicated to the chronic
sinusitis application and entering into the above transaction, we expect to
accelerate the development programs and commercialization opportunities for this
important new market."


Sinuwave Technologies Corporation is being established to develop and
commercialize photodisinfection products for the sinusitis market. It will
license all relevant Ondine intellectual property and know-how for this
application, including technology internally developed over the past ten years
and technology obtained in Ondine's December 2009 acquisition of Advanced
Photodynamic Technologies Inc. ("APT"). Sinuwave Technologies Corporation will
leverage the product development, clinical and regulatory experiences of both
the Ondine and APT teams.


About Ondine Biopharma Corporation

Ondine is developing non-antibiotic therapies for the treatment of a broad
spectrum of bacterial, fungal and viral infections. The Company is focused on
developing leading edge products utilizing its patented light-activated
technology. Photodisinfection provides broad-spectrum antimicrobial efficacy
without encouraging the formation and spread of antibiotic resistance. The
Company is based in Vancouver, British Columbia, Canada, with a research and
development laboratory in Bothell, Washington, USA.


For additional information, please visit the Company's website at:
www.ondinebiopharma.com.


Forward-Looking Statements:

Certain statements contained in this release containing words like "believe",
"intend", "may", "expect" and other similar expressions, are forward-looking
statements that involve a number of risks and uncertainties. Factors that could
cause actual results to differ materially from those projected in the Company's
forward-looking statements include the following: market acceptance of our
technologies and products; our ability to obtain financing; our financial and
technical resources relative to those of our competitors; our ability to keep up
with rapid technological change; government regulation of our technologies; our
ability to enforce our intellectual property rights and protect our proprietary
technologies; the ability to obtain and develop partnership opportunities; the
timing of commercial product launches; the ability to achieve key technical
milestones in key products and other risk factors identified from time to time
in the Company's public filings.


The LOIs are non-binding and there can be no assurances that the transaction
contemplated by the LOIs will be consummated. The transaction is subject to,
among other things, negotiation of a definitive agreement and the Company
receiving the usual regulatory approvals.