EANS-Adhoc: Oxygen Biotherapeutics and Hackensack University Medical Center Sign Research Contract Funded by the U.S. Department of Defense to Study Wound Healing Properties of Wundecyte™ Gel

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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28.01.2011

DURHAM, NC, January 28, 2011 - Oxygen Biotherapeutics, Inc. (NASDAQ & SIX Swiss
Exchange: OXBT) today announced it has signed a research contract with
Hackensack University Medical Center (HUMC) to research wound healing properties
of the Oxygen Biotherapeutics´ Wundecyte™ perfluorocarbon (PFC) and its novel
oxygen-producing bandage for treatment of full-thickness excisional wounds and
partial thickness burns. The preclinical study will also evaluate Wundecyte´s
ability to prevent scar formation and improve infection control. This project
will be funded by the U.S. Department of Defense.

Dr. Antoine Carlisle, a research scientist at HUMC, will be the Principal
Investigator. Oxygen Biotherapeutics researchers will work closely with HUMC by
participating in the study design and investigator meetings.

According to Oxygen Biotherapeutics Chief Medical Officer Gerald L. Klein, MD,
"Wounds and burns are the most common injuries faced by our soldiers daily. We
believe that providing additional oxygen may help heal wounds, fight infections
and decrease scarring. Wundecyte, our PFC gel used alone and in combination
with a bandage that releases oxygen to the damaged tissue site, may be
particularly useful in military applications. Naturally, if study results are
favorable, it may also have application for civilian injuries as well. We look
forward to working closely with HUMC on this important study."

end of ad-hoc-announcement
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About Oxygen Biotherapeutics, Inc.

Oxygen Biotherapeutics, Inc. is developing medical and cosmetic products that
efficiently deliver oxygen to tissues in the body. The company has developed a
proprietary perfluorocarbon (PFC) therapeutic oxygen carrier and liquid
ventilation product called Oxycyte that is being formulated for both intravenous
and topical delivery. This year, the company launched its DERMACYTE® line of
oxygen-rich skin care products. In addition, the company is focused on
perfluorocarbon-based oxygen carriers for use in traumatic brain injury,
decompression sickness, personal care, and topical wound healing. More
information is available at www.oxybiomed.com or www.buydermacyte.com.

About Hackensack University Medical Center

Hackensack University Medical Center, a 775-bed teaching and research hospital
affiliated with the University of Medicine and Dentistry of New Jersey – New
Jersey Medical School, is the largest provider of inpatient and outpatient
services in the state of New Jersey. Founded in 1888 with 12 beds and as Bergen
County's first hospital, Hackensack University Medical Center has demonstrated
more than a century of growth and progress. Today, this not-for-profit,
tertiary-care, teaching and research hospital serves as the hub of healthcare
for northern New Jersey and the New York metropolitan area. Hackensack
University Medical Center continues to grow in response to the needs of its
patient population.

Caution Regarding Forward-Looking Statements
This news release contains certain forward-looking statements by the company
that involve risks and uncertainties and reflect the company's judgment as of
the date of this release. These statements include the expansion of research and
development of the Oxycyte product line, including Wundecyte, and the timing of
the introduction of those new products. The forward-looking statements are
subject to a number of risks and uncertainties including matters beyond the
company’s control that could lead to delays in new product introductions and
customer acceptance of these new products, and other risks and uncertainties as
described in our filings with the Securities and Exchange Commission, including
in the current report on Form 10-Q filed on September 9, 2010. The company
disclaims any intent or obligation to update these forward-looking statements
beyond the date of this release. This caution is made under the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.

Further inquiry note:
Ellen Corliss

Vice President, Corporate Communications        
& Investor Relations                    
Oxygen Biotherapeutics, Inc     
2530 Meridian Pkwy, 3rd floor   
Durham, NC 27713                
Direct Telephone: +1 919 855 2112                       
Direct Fax: +1 919 806 4417     
Email: [email protected]
end of announcement                               euro adhoc

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issuer:      Oxygen Biotherapeutics Inc.
             2530 Meridian Pkwy 
             US-27713 Durham, NC
phone:       +1(919)7607606
FAX:         +1(419)7108764
mail:        [email protected]
WWW:         www.oxybiomed.com
sector:      Biotechnology
ISIN:        US69207P2092
indexes:     SSIRT

stockmarkets: Nasdaq: New York, Main Standard: SIX Swiss Exchange
language: English

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