EANS-Adhoc: Oxygen Biotherapeutics Reports First Quarter FY2011 Financial Results

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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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10.09.2010

DURHAM, NC, September 9, 2010 — Oxygen Biotherapeutics, Inc. (NASDAQ and SIX
Swiss Exchange: OXBT), a development stage biomedical company focused on
developing oxygen-rich intravenous and topical products, today announced results
for the fiscal year (FY) first quarter ended July 31, 2010.

Oxygen Biotherapeutics reported a net loss of approximately $3 million, or $0.13
per share, for the three months ended July 31, 2010, compared to a net loss of
$2.4 million, or $0.15 per share for the same period in the prior year. The
increase in net loss over the same period last year was primarily due to an
increase in costs associated with our Phase II-b trial for traumatic brain
injury, market analysis and direct marketing expenses for DERMACYTE cosmetics,
and an increase in legal and accounting fees for services provided for filing
registration statements and listing with the Swiss SIX Stock Exchange.

The Company reported other income of $27,217 for the quarter, a 28% increase
over other income of $21,283 for the same period in the prior year. The increase
in other income was due to online sales of our Dermacyte Concentrate skin care
product, which began in late April.

As of July 31, 2010, the Company had cash and cash equivalents totalling $2.8
million, up from $632,706 at April 30, 2010.

"Fiscal year 2011 began with raising approximately $5 million via two financing
vehicles. That capital enabled us to move our clinical and preclinical research
for Oxycyte forward as well as to ramp up our sales and marketing efforts behind
our newly introduced DERMACYTE cosmetic line," said Chris Stern, Chairman and
Chief Executive Officer of Oxygen Biotherapeutics. "Much of the work we´ve done
involves research, planning and behind the scene actions that are necessary to
drive our programs forward and to build market awareness for DERMACYTE."

end of ad-hoc-announcement
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Corporate Highlights (reflect activities from April 30 – September 8, 2010)

Clinical & Preclinical Update

•In May, we entered into an agreement with a site monitoring company to expand
our Phase II-b clinical trial for traumatic brain injury into India. In
September, we were informed that Israeli soldiers who suffer severe traumatic
brain injury (TBI) can be enrolled in the company’s TBI trials at clinical sites
in Israel.

•Preclinical studies from the University of Miami showed that Oxycyte improves
the volume of preserved neuronal tissue in the spinal cord following injury.
Researchers saw a favorable improvement in functional recovery as assessed by
footprint analysis six weeks post treatment.

•Results from U.S. Navy preclinical studies demonstrated decreased mortality in
porcine animal models that were given an intravenous dose of Oxycyte after the
onset of decompression sickness (DCS). These results showed a statistically
significant decrease in mortality compared with the control group that did not
receive Oxycyte. This data was published in the June issue of Aviation Space and
Environmental Medicine.

•Entered into a Cooperative Research and Development Agreement with the U.S.
Naval Medical Research Center to conduct preclinical trials to assess the safety
and efficacy of Oxycyte perfluorocarbon emulsion for the prevention and
treatment of decompression sickness and related injuries.

Dermacyte Update

•Launched two skin care products, DERMACYTE Oxygen Concentrate and DERMACYTE
Oxygenating Eye Complex. Both products are now available in elegant pump
bottles on-line at www.buydermacyte.com. Sales activities to place products in
spas and resorts are underway.

•DERMACYTE cosmetic study conducted with 36 women ages 39-63 with
mild-to-moderate facial wrinkles reported that 80% of subjects experienced at
least one-grade improvement on the Fitzpatrick Wrinkle Assessment Scale (FWAS)
(P<0.0001); 97% experienced at least one grade of improvement compared to their
baseline photos according to the investigator's Global Improvement Aesthetic
Scale (GIAS) (P<0.0001); and 84% has at least a grade of improvement on their
self-perception of GIAS (P<0.0001).

•Developed the first phase of our internal sales force targeting spas and
dermatologists in New York, Michigan and Arizona.

•Promotional marketing efforts underway include public relations to secure
coverage in general, trade and online publications, trade advertising, tradeshow
exhibiting, promotional material development, a new product web site and product
promotions through events, e-zines, beauty magazines and blogs.

•Ongoing efforts to secure a partnership with a major cosmetic company with the
objective of placing our oxygen-rich products in retail outlets.

Corporate Update

•Raised nearly $5 in capital from a registered direct offering and from the
Vatea Fund.

•In June, shares of OXBT common stock began trading on the Swiss SIX Stock
Exchange.

•In June, our Company was included in the Russell Microcap Index which measures
the performance of the microcap segment of the U.S. equity market.

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 for conditions including but not limited to
traumatic brain injury, decompression sickness and topical wounds. This same
PFC is included in the Company’s full line of personal skin care products. More
information is available at www.oxybiomed.com.

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 development
of the Oxycyte and DERMACYTE product lines 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
reports on Form 10-Q and Form-10K. 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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