InSite Vision Incorporated (OTCBB:INSV) today announced that the University of California, San Francisco (UCSF) has appealed the judgment of the United States Patent and Trademark Office (USPTO) panel that found in favor of the Company in its patent interference litigation with UCSF. The USPTO panel of judges entered judgment in favor of InSite Vision and confirmed the inventorship of InSite Vision's U.S. Patent Nos. 6,239,113 and 6,569,443 protecting AzaSite® on November 25, 2011. The appeal was filed by UCSF with the U.S. Court of Appeals for the Federal Circuit in Washington, D.C. on December 23, 2011.

"We are disappointed that UCSF has chosen to appeal the judgment of the USPTO in this case," said Timothy Ruane, InSite Vision's Chief Executive Officer. "We strongly believe that the UCSF claims are entirely without merit as confirmed by the USPTO and we will continue to vigorously defend our position."

In 2009, the Regents of the University of California claimed that the inventions contained in the patents were made by a former employee of the University alone and without collaboration with InSite Vision, the assignee of all the named inventors.

About InSite Vision

InSite Vision is advancing new and superior ophthalmologic products for unmet eye care needs. The company's product portfolio utilizes InSite Vision's proven DuraSite® bioadhesive polymer core technology, an innovative platform that extends the duration of drug retention on the surface of the eye, thereby reducing frequency of treatment and improving the efficacy of topically delivered drugs. The DuraSite platform is currently leveraged in two commercial products for the treatment of bacterial eye infections, AzaSite® (azithromycin ophthalmic solution) 1%, marketed in the U.S. by Merck, and Besivance® (besifloxacin ophthalmic suspension) 0.6%, marketed by Bausch + Lomb. InSite Vision's clinical-stage ophthalmic product pipeline includes AzaSite Plus? (ISV-502) and DexaSite? (ISV-305) for the treatment of eye infections, BromSite? (ISV-303) for pain and swelling associated with ocular surgery, and ISV-101 for the treatment of dry eye disease. For further information on InSite Vision, please visit www.insitevision.com.

Forward-looking Statements

This news release contains certain statements of a forward looking nature relating to future events, including the Company's plans with respect to the litigation described above. Such statements entail a number of risks and uncertainties, including but not limited to: the inherent uncertainty of any litigation matter; the Company's ability to continue to adequately protect its intellectual property and to be free to operate with regard to the intellectual property of others. Reference is made to the discussion of these and other risk factors detailed in InSite Vision's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its quarterly reports on Form 10-Q, under the caption "Risk Factors" and elsewhere in such reports. Any forward-looking statements or projections are based on the limited information currently available to InSite Vision, which is subject to change. Although any such forward-looking statements or projections and the factors influencing them will likely change, InSite Vision undertakes no obligation to update the information. Such information speaks only as of the date of its release. Actual events or results could differ materially and one should not assume that the information provided in this release is still valid at any later date.

AzaSite® and DuraSite® are registered trademarks of InSite Vision Incorporated.

BESIVANCE® is a registered trademark of Bausch + Lomb Incorporated.

InSite Vision
Louis Drapeau, 510-747-1220
Chief Financial Officer
mail@insite.com
or
Media and Investor inquiries
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Michelle Corral, 415-794-8662
Karen L. Bergman, 650-575-1509