EANS-Adhoc: Oxygen Biotherapeutics Reports Second 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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10.12.2010

DURHAM, NC, December 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) second quarter ended October 31, 2010.

Highlights (activity through December 9, 2010)
?Received $245,000 grant under the Patient Protection and Affordable Care
Program Act
?Secured listing on leading on-line beauty retail websites for DERMACYTE skin
care products: Dermstore.com and Beautyriche.com
?Granted DSMB Approval to proceed to second cohort of STOP-TBI Phase II-b
trials
?In November, the Company issued a promissory note under Note Purchase Agreement
with Vatea Fund in the amount of $600,000

"While still moderate at this stage, DERMACYTE sales continued to rise slowly,
yet steadily, during the quarter. In October we hired a top-notch sales director
whose 15 years of experience in dermatological and skin care sales will elevate
our sales effort to the next level," said Chris Stern, Chairman & Chief
Executive Officer of Oxygen Biotherapeutics. "Our efforts next quarter will
focus on DERMACYTE sales and R&D, while managing expenses."

Second Quarter Results
Oxygen Biotherapeutics reported net revenue of $27,126 for the second quarter of
fiscal 2011, compared to $6,561 for the comparable quarter the previous year due
to increased sales of DERMACYTE products.

Total operating expenses for the period ended October 31, 2010 were $2,083,863
compared to $2,593,051 for the same period in 2009. These expenses were driven
primarily by an increase in R&D payroll and clinical trial costs, offset by a
decrease in SG&A expenses due to a decrease in legal, accounting and consulting
fees, as well as lower other income and interest expenses.

For the second quarter period ended October 31, 2010, the Company reported a net
loss of approximately $2.0 million, or $0.09 per share, compared to a net loss
of approximately $2.6 million, or $0.13 per share for the same period in the
prior year. The decrease in net loss for the quarter was primarily due to a
decrease in legal, accounting and consulting fees, compensation, and lower
development and manufacturing costs for Oxycyte. The net loss was partially
offset by an increase in sales and marketing expenses related to the marketing
and sales efforts for DERMACYTE products and an increase in research and
development costs that can be attributed to our traumatic brain injury Phase
II-b trials and payroll.

Six Month Results
Net revenue for the six months ended October 31, 2010 was $32,236 compared to
total revenue of $6,561 for the same period in fiscal year 2010. This was
primarily due to DERMACYTE product sales.

For the six-month period ending October 31, 2010 the company had total operating
expenses of $5,112,174 compared to $4,883,586 for the same period in 2009. The
increase is primarily due to costs incurred for compensation, clinical trials,
development and manufacture of Oxycyte, a reduction in costs incurred for
stock-based compensation, and marketing and sales expenses for DERMACYTE
products.

The Company reported a net loss of $5,054,236, or $0.22 per share for the six
month period ended October 31, 2010, compared to a net loss of $4,985,890, or
$0.28 per share for the same period in 2009.

As of October 31, 2010, the Company had cash and cash equivalents totaling
$837,167, up from $632,706 at April 30, 2010.

Conference Call
Management will host a conference call on Friday, December 10, 2010 at 11 a.m.
EST. To access the live teleconference dial (866) 825-3209 (U.S. and Canada) or
(617) 213-8061 (international.) The participant passcode is 81091554. A live
webcast will be available on our web site
http://www.oxybiomed.com/investors.htm.
A replay of the webcast will be available on the Oxygen Biotherapeutics website,
or by phone for a limited time. To access the replay by phone, call (888)
286-8010 (U.S. and Canada) or (617) 801-6888 (international) for a limited time.
The passcode for the replay is 25705024.

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.

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

Headquartered in Durham, NC, 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 called Oxycyte that is being formulated for both intravenous and topical
delivery. Potential indications include traumatic brain injury, decompression
sickness, wounds and pruritis. This year, the company launched its DERMACYTE®
line of oxygen-rich skin care products. More information is available at
www.oxybiomed.com or www.buydermacyte.com.

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: e.corliss@oxybiomed.com
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:        c.stern@oxybiomed.com
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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