Ondine Biopharma Corporation Announces Proposed Share Consolidation and Name Change

VANCOUVER, BRITISH COLUMBIA--(Marketwire - September 29, 2010) - Ondine Biopharma Corporation (TSX: OBP)(AIM: OBP) (“Ondine” or the “Company”) today announced its intention to consolidate its issued and outstanding common shares and to change its name to Ondine Biomedical Inc., to more accurately reflect the nature of its operations. The Company does not anticipate changing its trading symbol.

Under the proposed consolidation, every fifteen (15) existing shares will be consolidated into one (1) new share (the “Consolidation”). The Company currently has 126,796,145 common shares issued and outstanding. Upon completion following receipt of regulatory approvals, Ondine would have approximately 8,453,042 common shares issued and outstanding, after adjusting for fractional shares. Fractional shares remaining after giving effect to the Consolidation will be cancelled, such that shareholdings of each shareholder will be rounded down to the nearest whole number of post-consolidation common shares. Outstanding stock options and warrants will similarly be adjusted by the Consolidation ratio.

In accordance with the articles of the Company, which were approved by the shareholders, the Board of Directors has the authority to effect the name change and the share consolidation by directors’ resolution and the Company does not intend to seek shareholder approval for these changes. The Consolidation and name change are subject to the approval of the Toronto Stock Exchange. If the Consolidation proceeds, the Company will issue a subsequent news release indicating the record date of the Consolidation and the date on which the Company’s shares will commence trading on a post consolidation basis.

Management believes that consolidating the Company’s issued common share capital would be in the best interests of the Company. In the opinion of Management, the share consolidation will improve the ability of the Company to attract additional equity financing necessary to continue with its existing business, the development and commercialization of photodisinfection products for the medical market.

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.

Cautionary Statements:

Completion of the proposed Consolidation is subject to a number of conditions, including but not limited to, the Toronto Stock Exchange acceptance. There can be no assurance that the Consolidation will be completed as proposed, or on a specific date, or at all. There can be no assurance that the market price of the post-consolidated common shares of the Company will increase as a result of the proposed Consolidation. The marketability and trading liquidity of the post-consolidated common shares of the Company may not improve as a result of the Consolidation.

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; our ability to obtain regulatory approvals, our ability to obtain and develop partnership opportunities; the timing of commercial product launches; our 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 TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.