EANS-Adhoc: Oxygen Biotherapeutics Signs Agreement to Sell DERMACYTE Products to Swiss Sales and Distribution Company

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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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Contracts

13.01.2011

DURHAM, NC, January 13, 2011 - Oxygen Biotherapeutics, Inc. (NASDAQ &
SIX Swiss Exchange: OXBT) today announced it has entered into an
agreement with the newly formed, independently owned and operated
DERMACYTE Switzerland Ltd. (DSL) of Zurich for the sale of DERMACYTE
products. Per the terms of the agreement, DSL has exclusive rights to
buy, sell and distribute Oxygen Biotherapeutics´ DERMACTYE® skin care
products throughout the European Union, Switzerland and Russia. The
agreement also grants DSL the option to add South America as an
exclusive territory if purchase volume milestones are achieved.

Per the terms, DSL commits to purchase a total of 40,000 units of
DERMACYTE products by calendar year-end 2011. One-thousand units of
DERMACYTE products were purchased prior to signing this agreement.
After December 31, 2011, the agreement calls for an annual growth
rate of 10 percent in units purchased during the preceding calendar
year.

Oxygen Biotherapeutics does not have an ownership stake in DSL. It
has granted rights to DSL to use the DERMACYTE product trademark.

"Expansion into Europe is a key component of our overall sales
strategy for DERMACYTE skin care products and we believe that DSL
will allow us to reach this key customer base," said Chris Stern,
Chairman and Chief Executive Officer of Oxygen Biotherapeutics.

"The market opportunity for oxygen-based skin care treatments in
Switzerland, Russia and the EU is strong, yet in our opinion,
existing products introduced by other companies have not lived up to
their promise. Oxygen Biotherapeutics has developed two remarkable
skin care lotions that get rave reviews from numerous beauty industry
influencers who have used the products in the United States," said
Oskar Kaelin, founder of DSL. "We believe our new markets will
respond favorably to DERMACYTE as well."

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 Company´s
ability to finalize its agreement with OKAL for the sales and
distrubtion of DERMACTYE products, expansion of research and
development of the Company´s Oxycyte® product lines, 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.

end of ad-hoc-announcement ==========================================
====================================== About DERMACTYE Cosmetics

DERMACYTE Oxygen Concentrate is a scientifically designed,
proprietary cream made to enhance oxygen delivery to skin. It is the
first product in a broad and diverse cosmetic line currently under
development by Oxygen Biotherapeutics. It complements DERMACYTE
Oxygenating Eye Complex, which has several ingredients, such as
avocado essence, soothing oat kernel, Vitamin C, sunflower oil and
antioxidants that target the eye contour area. The DERMACYTE skin
care line uses the Oxygen Biotherapeutics’ oxycyte technology (an
oxygen carrier) to deliver oxygen to tissues, such as skin.

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 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.

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: +1 919 806 4405
Direct Fax: +1 919 806 4417
Email: e.corliss@oxybiomed.com
Homepage: www.oxybiomed.com

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