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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quarterly report

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 ==========================================
====================================== 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.

end of announcement euro adhoc
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ots Originaltext: Oxygen Biotherapeutics Inc.
Im Internet recherchierbar: http://www.presseportal.de

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

Branche: Biotechnology
ISIN: US69207P2092
WKN: 10728277
Index: SSIRT
Börsen: New York / Nasdaq
SIX Swiss Exchange / Main Standard