Vivesto — Capital/Financing Update 2010

Jul 22, 2010

2010-07-22

PRESS RELEASE

Oasmia Sweden enters into SEK 75 million Standby Equity Distribution Agreement with U.S.-based YA Global Master SPV Ltd.

Oasmia Pharmaceutical Sweden enters into SEK 75 million Standby Equity Distribution Agreement with YA Global. The agreement provides financial flexibility, allowing the Company to access capital at its discretion.

Oasmia Pharmaceutical AB has entered into a Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV Ltd (YA Global), which is managed by U.S.-based Yorkville Advisors, LLC. (Yorkville). Pursuant to the terms of the agreement, YA Global has committed to provide up to SEK 75 million of capital during the next 36 months, at Oasmia's discretion, through the purchase of newly issued Oasmia common shares. The purchase price of the newly issued common shares is determined by a formula based on the market price of the Oasmia common stock at the time of each issuance. Thus Oasmia will retain complete discretion over if and when it makes use of its rights throughout the life of the option and the commitment provides Oasmia with completely flexible access to additional equity capital up to SEK 75 million.

• It is very gratifying that Oasmia has created this alternative financing solution until the time when the Company can become self-financing. The signing of this agreement with YA Global better enables Oasmia to focus on the operational activities, including everything related to the registration processes, after a period where much energy has been dedicated to the work with Oasmia's change of stock exchange list, as well as financing matters, says Julian Aleksov, CEO at Oasmia.

• Oasmia sees great potential for a future partnership with YA Global. The innovative structure of the potential investor´s commitment, with its combination of both flexibility and financial security, is a perfect arrangement for the Company at this stage. This agreement is completely in line with the investor´s investment strategy, Mr Aleksov continues.

• We are very pleased to be investing in Oasmia Pharmaceutical AB as our first Swedish portfolio company with its exciting nanotechnology platform and business plan, says Dr. Michael J. Nowak, Managing Director at Yorkville.

For more information about Yorkville Advisors LLC: www.yorkvilleadvisors.com For more information about Oasmia Pharmaceutical AB: www.oasmia.com

Disclaimer

This press release includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect actual future results and the trading price of Oasmia's securities. Specifically, the risks and uncertainties that could affect the development of Paccal® Vet include risks associated with preclinical and clinical developments in the biopharmaceutical industry in general, and with Paccal® Vet in particular, including, without limitation, the potential for Paccal® Vet to be proved safe and effective (or to achieve response rates) for the treatment of the indications noted in this press release or any other indication, determinations by regulatory, patent and administrative governmental authorities, the potential that Paccal® Vet will not produce high rates of complete remission in patients with mastocytoma, the possibility that the registration trial for Paccal® Vet as a treatment for mastocytoma in dogs will not occur, the possibility that the U.S. Food and Drug Administration will not approve a phase III registration strategy for Paccal® Vet if proposed by Oasmia, the potential that Abbott will not exercise its distribution rights, Oasmia's ability to continue to raise capital as needed to fund its operations, competitive factors, technological developments, and costs of developing, producing and supplying Paccal® Vet. Except as may be required by law, Oasmia does not intend to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

For more information, please contact: Maria Lundén, Head of Public Relations, Oasmia Pharmaceutical AB. E-mail: press@oasmia.com Phone: +46 (0) 18 50 54 40. Information is also available at www.omx.com and www.oasmia.com