The closing of the sale follows the signing of the non-binding letter of intent on April 7,

2009, the approval of the Company’s shareholders on May 19, 2009, and the signing of

the definitive agreement on June 5, 2009. Under the terms of the transaction, Ondine and

PDT will collaborate on the continued development and commercialization of the

Periowave™ photodisinfection technology. As part of the purchase price for the Dental

Healthcare Business Ondine received an initial payment of $725,000 from PDT and is

entitled to receive, among other things, royalties and a potential stream of milestone

payments of up to $51.4 million on the successful attainment of cumulative revenue

targets over ten years. In the event of a subsequent sale to a third party, Ondine will be

entitled to receive, in lieu of further royalties and milestone payments, a percentage of all

proceeds of such sale (net of transaction costs and amounts previously received as part of

the purchase price), up to a maximum of 40 percent in the first year and declining on a

yearly basis to 5 percent in the sixth year and 2.5 percent thereafter. In addition, the

Company is entitled to manufacturing margins for supplying PDT with Periowave™

product for at least two years pursuant to a manufacturing, sustaining and servicing

agreement; and, subject to certain conditions, Ondine will receive management

consulting fees of US $50,000 per month for up two years pursuant to a management

services agreement.

A copy of the definitive agreement and the other material auxiliary agreements will be

made available on the SEDAR website at