EANS-Adhoc: Oxygen Biotherapeutics Reports Financial Results for Fiscal Year 2011

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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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15.07.2011

MORRISVILLE, NC, July 14, 2011 — 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) ended April 30,
2011.

R&D Highlights

•Completed the first cohort of our STOP-TBI Phase IIb clinical trial
and initiated efforts to expand trials to India. Received DSMB
approval to proceed to second cohort of the STOP-TBI Phase IIb
clinical trial.

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

•U.S. Navy studies demonstrated decreased mortality in models that
were given an intravenous dose of Oxycyte PFC emulsion after the
onset of decompression sickness. This data was published in the June
2010 issue of Aviation Space and Environmental Medicine.

•Signed research contract funded by the Department of Defense with
Hackensack University Medical Center to study the wound healing
properties of Wundecyte™ gel. Studies are underway.

•Signed a Letter of Intent with Sarasota Medical Products to pursue
joint research and development in chronic ischemic wound care.

Corporate Highlights

•Raised $4.9 million in a private placement of Unregistered
Convertible Notes and Warrants in June 2011.

•Received $2.07 million two-year grant from the U.S. Army to study
the use of Oxycyte® perfluorocarbon (PFC) emulsion for traumatic
brain injury.

•Raised nearly $5 million from a registered direct offering in May
2010.

DERMACYTE® Highlights

•Launched two oxygenating skin care products, DERMACYTE Concentrate
and DERMACYTE Oxygenating Eye Complex in the U.S. via internet sales
and direct sales to dermatologists and medi-spas.

•Expanded international sales of DERMACYTE by entering into
agreements with two distributors that will sell DERMACYTE® skin care
products in the Swiss, Mexican, European and Russian markets.

•Secured listings on leading on-line beauty retail websites for
DERMACYTE skin care products: www.Dermstore.com and
www.Beautyriche.com

"Fiscal year 2011 was a building year for our company. We achieved a
broad array of objectives across the topical, systemic and cosmetic
programs within our company. With that groundwork set, I feel
enthusiastic about the prospects of our topical and systemic research
programs as well as our cosmetic business. The coming year will be
one focused on (a) generating more clinical results with
proof-of-concept studies for dermatological indications; (b)
progressing our TBI trials; (c) collaborations with dermatologists
who want to conduct studies to determine the benefits of DERMACYTE
skin care products; and (c) growing DERMACYTE sales," said Chris
Stern, Chairman and Chief Executive Officer.

Financial Results

Net revenue for the fiscal year ended April 30, 2011 was $103,167
compared to $8,353 for the same period in fiscal year 2010. Gross
profit as a percent of revenue was 32% compared with 17% for the
previous year. This was primarily due to increased sales volume of
the Company´s two new DERMACYTE products that were launched in fiscal
2011.

Marketing and sales expenses for the year ended April 30, 2011 were
$875,634 compared with $283,104 for the comparable period in 2010.
The increases in marketing and sales expenses for the year were
driven primarily by an increase in the costs incurred for
compensation, marketing and direct advertising for our DERMACYTE
product line, as well as trade shows, public relations and other
market development programs for our cosmetics.

General and Administrative (G&A) expenses increased from $6,952,036
to $7,108,497 for the fiscal year 2012 compared with fiscal year
2011. The increase in G&A expenses for the fiscal year 2011 was
driven primarily by an increase in legal and accounting fees,
compensation, depreciation and amortization, and impairment charges
on certain intangible assets. This increase was partially offset by
a reduction in our costs for consulting.

For the 12-month period ending April 30, 2011, research and
development expenses decreased 10% from $2,974,709 compared to
$2,681,713 for the 12-month period ending April 20, 2010. The
decrease in R&D was driven primarily by a reduction in development
costs, partially offset by an increase in compensation and costs
associated with the Phase IIb traumatic brain injury clinical trials
for Oxycyte emulsion.

During the 12-months ended April 30, 2011, other income increased
approximately $435,000 compared to the same period in the prior year.
This increase was due to the award of nearly $250,000 under the
Patient Protection and Affordable Care Act of 2010, which was
received in November 2010, and the impairment on our investments in
Glucometrics and Purple Heart Injury Labs of approximately $210,000
recorded in the prior year.

Interest expense increased approximately $17,000 for fiscal year 2012
due to the accretion of premium due on the promissory notes issued
under the Note Purchase Agreement with our largest shareholder, the
Vatea Fund, as compared to the interest recognized from the
amortization of the discounts and issue costs upon conversion of the
notes payable in the prior year.

Total operating expenses for the year ended April 30, 2011 were
$10,665,844 compared to $10,209,849 for the same period in 2010.

For the fiscal year ended April 30, 2011, we reported a net loss of
$10,448,296, or $0.45 per share, compared to a net loss of
$10,507,376, or $0.54 per share for fiscal year 2010.

For the full year ended April 30, 2011, the Company had cash and cash
equivalents totaling $951,944, compared with $632,706 at April 30,
2010.

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 ==========================================
====================================== Conference Call

Management will host a conference call on Friday, July 15, 2011 at 11
a.m. EDT. To access the live teleconference, dial (800) 688-0836
(U.S. and Canada) or (617) 614-4072 (international.) The participant
pass code is 26134845. 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 pass code for the replay is 98577075.

About Oxygen Biotherapeutics, Inc.

Headquartered in Morrisville, 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 dermatologic indications. This
year, the company launched its DERMACYTE® line of oxygen-rich skin
care products. More information is available at www.oxybiomed.com or
www.dermacyteUS.com.

Further inquiry note:
Für weitere Auskünfte wenden Sie sich an:

Ellen Corliss
Vice President, Corporate Communications
& Investor Relations
Oxygen Biotherapeutics, Inc
One Copley Pkwy, Suite 490
Morrisville, NC 27560
Direct Telephone: +1 919 855 2112
Direct Fax: +1 919 806 4417
Email: e.corliss@oxybiomed.com

Dr. Chris Stern
Chairman of the Board & CEO
Oxygen Biotherapeutics, Inc
One Copley Pkwy, Suite 490
Morrisville, NC 27560
Direct Tel.: +1 919 855 2151
Direct Fax: +1 419 710 8764
Email: c.stern@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