Ondine Completes Sale of Majority Interest in Sinusitis Subsidiary

Ondine Biopharma Corporation (TSX:OBP)(AIM:OBP) (the "Company") today announced
that it has concluded the sale (the "Sinuwave Sale") of a majority interest in
Sinuwave Technologies Corporation ("Sinuwave") to a group of private equity
investors. Sinuwave was formed by the Company as a dedicated vehicle for the
development of photodisinfection solutions for the chronic sinusitis market. In
addition to a cash payment received by the Company on closing, the transaction
provides Ondine with future economic benefits and with current cash flows to be
used for the development of this expanded application of the Company's
photodynamic platform technology. The Company also announced that Mr. James
Balcom has been appointed President and Chief Executive Officer of Sinuwave
Technologies Corporation. Mr. Balcom has over 20 years of experience leading and
managing companies involved with the development and commercialization of
cutting edge, complex technologies.


"Today, few effective treatments exist for a large and rapidly growing number of
chronic recurrent sinusitis sufferers. We believe photodisinfection technology
may offer an effective solution for the treatment of chronic sinusitis. The
proven antimicrobial and anti-inflammatory benefits of Ondine's non-antibiotic
photodisinfection technology have the potential to provide substantial relief to
those chronic sinusitis patients who have found sinus surgeries, antibiotics and
other treatment methods to be unsuccessful," said Carolyn Cross, Chairman & CEO
of Ondine Biopharma Corporation.


"Having established Sinuwave as a separate company dedicated to the treatment of
chronic sinusitis, this transaction is expected to accelerate the development
programs and commercialization opportunities for this important new market.
Ondine, the global leader in photodisinfection technology, will work with
Sinuwave to create a new class of products to better serve these patients. We
are excited that James Balcom has joined us as President and CEO of Sinuwave and
will be spearheading this initiative to develop this important new application
of photodisinfection."


Sinuwave Technologies Corporation 

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


Terms of the Sinuwave Sale Transaction 

Ondine sold a majority of its ownership in Sinuwave (the "Sinuwave Sale") for
US$660,000 (the "Sinuwave Sale Proceeds") to the private equity investor group.
In addition, immediately subsequent to the Sinuwave Sale, the private equity
investor group completed an initial financing in Sinuwave for US$550,000 (the
"Initial Sinuwave Financing"). The former shareholders of APT received a 3.3%
interest in Sinuwave (post the Initial Sinuwave Financing), including a 2.0%
interest received by Merrill Biel, a director of the Company and a 1.2% interest
received by his wife. These shares were issued in settlement of Ondine's
obligation to pay 5% of the Sinuwave Sale Proceeds to the former shareholders of
APT. As a result of the sale and financing transactions, the private equity
investor group will own a 77.1% interest in Sinuwave and Ondine retains a 19.6%
interest. Under the terms of a shareholder agreement, Ondine has the right to
participate in future financings of Sinuwave to the extent required to maintain
its percentage interest. The private equity investor group has also committed to
provide Sinuwave with additional financing totaling US$1.1 million in 2 tranches
and would have the right to invest a further $1.1 million in Sinuwave on
exercise of share purchase warrants.


Ondine has also entered into a memorandum of understanding ("MOU") with
Sinuwave, pursuant to which Ondine will receive monthly fees for management and
research and development services initially representing up to US$780,000
annually. Also under the terms of the MOU, Ondine would have the right and
obligation to manufacture products for Sinuwave for the chronic sinusitis
application on a cost plus basis, and Ondine would be entitled to receive
royalties on Sinuwave sales. In addition, Ondine is entitled to milestone
payments totaling US$250,000 based on the achievement of certain development
milestones. It is expected that the MOU will be followed up by definitive
agreements to be entered into by the parties on or about the end of September
2010.


Proceeds from the Sinuwave Sale will be used by Ondine for the continued
research and development of the Company's platform photodisinfection technology
products, including the Company's MRSAid(TM) nasal decolonization system, its in
situ endotracheal tube disinfection system, as well as for working capital and
general corporate purposes.


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.
Almo Capital Corp. (TSXV:APT)
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