– Ondine Biopharma Corporation (the “Company” or

“Ondine”, TSX: OBP; AIM: OBP), a medical device company developing photodisinfection

based products, today announced it has completed the private placement with Grafton Resource

Investments Ltd. (“Grafton”) which was press released on May 19

. The private placement

consisted of a share exchange transaction with Grafton, a Closed-End fund managed by Newland

Fund Management LLP of London, England.

Ondine issued 14,851,250 of its common shares at C$0.12 per share to Grafton, representing a

value of C$1,782,150 (US$1.5 million), in exchange for 39,042 Ordinary Shares of Grafton Fund

(the “Grafton Fund Shares”) at US$38.42 per fund share. The common shares of Ondine issued

pursuant to the share exchange transaction are subject to a hold period in Canada expiring

October 3, 2009. An application has been made for the 14,851,250 common shares issued by

Ondine under the private placement to be admitted to trading on AIM, and admission is expected

to occur on June 4, 2009. Subsequent to the closing of this placement, Grafton Fund owns a total

of 17.5% of Ondine's issued and outstanding shares. In connection with this transaction, DFC

Corp. received a finder’s fee, which includes 250,000 share purchase warrants. Each warrant is

exercisable into one common share of Ondine at $0.12 until June 2, 2011. Upon completion of

this private placement Ondine will have 84,830,594 common shares outstanding.

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