Ondine Biopharma Corporation Raises $618,000 from Partial Sale of Grafton Investment

VANCOUVER, BRITISH COLUMBIA--(Marketwire - September 23, 2009) - Ondine Biopharma Corporation (the "Company" or "Ondine") (TSX: OBP)(AIM: OBP), a medical device company developing photodisinfection based products, today announced it has received cash proceeds of $618,000 (US$577,500) from the sale of 21,000 Ordinary Shares of Grafton Resource Investments Ltd. (the "Grafton Fund"). Ondine acquired its investment in the Grafton Fund shares via a share exchange transaction executed earlier this year. The Company will recognize a pre-tax loss of $341,000 on this sale in its consolidated financial statements for the quarter ended September 30, 2009. The Company continues to hold 18,042 Ordinary Shares of Grafton with an original cost of $824,000. The Company intends to liquidate these shares in the future to raise additional funds as needed for the continued research and development of the Company's platform photodisinfection technology and 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, and an international office in St. Michael, Barbados. 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; and 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 TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.