EANS-Adhoc: Oxygen Biotherapeutics Reports First Quarter FY2012 Financial Results and Announces Conference Call and Webcast for Shareholders

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announcement.
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quarterly report

20.09.2011

MORRISVILLE, NC, September 19, 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) 2012 first
quarter ended July 31, 2011. The company also announced that the
company will host a conference call regarding these results on
Tuesday, September 20, 2011 at 10:30 AM EDT. (see conference call
access details below)

Company Highlights

-Raised approximately $4.9 million in a private placement of
unregistered convertible notes and warrants -Received approval by the
Drug Controller General of India to conduct our traumatic brain
injury Phase IIb trials known as STOP-TBI at clinical sites in India
-Signed a Letter of Intent to conduct preclinical research for
imaging and therapeutic intervention of acute ischemic stroke. The
research will be conducted by Aurum Biosciences using our proprietary
Oxycyte® PFC (perfluorocarbon) emulsion in combination with Aurum's
proprietary Glasgow Oxygen Level Dependent (GOLD) Magnetic Resonance
Imaging techniques

Financial Results

Oxygen Biotherapeutics reported a net loss of approximately $2.8
million, or $0.12 per share, for the three months ended July 31,
2011, compared to a net loss of approximately $3 million, or $0.13
per share for the same period in the prior fiscal year. The decrease
in net loss over the same period last year was primarily due to a
decrease in Oxycyte development costs, clinical trial costs, and
overall administrative expenses which were offset by an increase in
costs associated with marketing and selling our cosmetic products.

Revenue for the quarter ended July 31, 2011 increased to $59,477
compared to $6,900 in the same quarter in 2010 due to the addition of
our DERMACYTE Concentrate and Eye Cream products, increased sales
from our internal sales force, and shipments to our distributor in
Mexico.

Gross profit as a percent of revenue was 42% and 74% for the three
months ended July 31, 2011 and 2010, respectively. The decrease
primarily was due to changes in the product mix resulting from the
addition of DERMACYTE Concentrate and Eye Serum and sales through
distribution channels in the three months ended July 31, 2011.

Marketing and sales expenses increased to approximately $230,000 for
the quarter ended July 31, 2011 compared to $105,076 for the same
period in 2010. This increase was driven primarily by costs incurred
for compensation and direct advertising.

General and administrative expenses decreased 12% to $1.5 million
from $1.8 million for the periods ended July 31, 2011 and 2010,
respectively. This decrease was driven primarily by a reduction in
compensation costs, travel expenses, and amortization of intangible
assets. The decrease was partially offset by an increase in
accounting and legal fees.

Research and development expenses decreased 43% to nearly $652,000
during the period ended July 31, 2011 compared to over $1.1 million
during the same period in 2010. The decrease was due to a reduction
in Oxycyte development costs and contract research organization
costs, partially offset by an increase in compensation and consulting
costs.

As of July 31, 2011, the company had cash and cash equivalents
totaling approximately $4 million, up from $951,944 at April 30,
2011. This was due primarily to a financing that closed at the end of
June 2011. Subsequent to the end of the first quarter, the company
received over $600,000 from the exercise of certain outstanding
warrants on August 2, 2011.

end of ad-hoc-announcement ==========================================
====================================== Management Changes

On August 24, 2011, the Board of Directors announced that Rene
Eckert, a director on our Board since October 2009, was named interim
Chairman of the Board, and Chief Financial Officer Michael B. Jebsen
was named interim Chief Executive Officer. They fill the positions
vacated by Chris J. Stern who was dismissed with cause on the same
day. Due to the circumstances surrounding his dismissal, Mr. Stern
was not paid any severance in connection with the termination of his
employment or his departure from the Board.

As previously disclosed, our Audit Committee, which is composed of
independent directors, conducted an investigation into the conduct of
Mr. Stern resulting in his dismissal. The focus of the Audit
Committee’s investigation primarily concerned the accuracy of the
credentials set forth in Mr. Stern’s biography and the circumstances
surrounding certain transactions occurring prior to 2009. This
investigation has concluded and a report of the Audit Committee’s
findings can be found in Management’s Discussion and Analysis of
Financial Condition and Results of Operations – Audit Committee
Investigation included in our Form 10-Q filed today with the U.S.
Securities and Exchange Commission (SEC).

In light of the conduct discovered by the Audit Committee, the
company has informed the staff of the SEC and representatives of
NASDAQ of the Audit Committee’s findings.

“The company’s transition, while difficult, is not insurmountable.
We have already engaged a firm to conduct a nationwide executive
search for a leader with the expertise necessary to move our products
through the regulatory process. Meanwhile, our dedicated employees
are focused on the day-to-day operations to progress our preclinical
studies with the Army, Navy and Hackensack University Medical Center,
and our TBI clinical trials. I wish to express my deep appreciation
to our employees who are working diligently to execute our daily
operations as we work through the issues surrounding this abrupt
management change,” said Mr. Eckert.

Added Mr. Jebsen: “I am pleased to say that our internal controls
were instrumental in this entire process. Although we believe they
were sufficient as of the end of the first quarter, we are
strengthening them further by adopting new measures with respect to
background checks, related-party transactions, and revising our Code
of Ethics to explicitly state that providing false or misleading
information in response to a corporate investigation is a violation
of the Code subject to discipline. As interim CEO I will work with
management and the Board to clarify our top priorities, reduce costs
and aid in the selection of a new chief executive officer. We have
very promising technology that has resulted in high potential product
candidates that can address a variety of medical conditions. In the
coming months, you can expect us to focus on the areas that we
believe demonstrate the highest technical and commercial potential.”

Conference Call Dial-In, Webcast Information

Management will host a conference call on Tuesday, September 20 at
10:30 a.m. EDT. To access the live teleconference, dial
(866)770-7120 (U.S. and Canada), or (617) 213-8065 (international),
and enter the passcode 78227206. It will also be available via live
webcast in the Investor section on our website www.oxybiomed.com. 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
43757071.

General Annual Meeting of Shareholders

All shareholders of record as of August 19, 2011, are invited to
attend the company’s General Annual Meeting of Shareholders on
Friday, September 30, 2011. It will be held at the Hotel Sierra in
Morrisville, NC at 9 AM EDT. Photo identification is required to
attend. Shareholders of record can cast their votes by phone, on
line, by fax or in person as per the instructions on your proxy card.
If you need additional information, or a copy of your proxy, please
make your request to Investor Relations at e.corliss@oxybiomed.com.

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 product
called Oxycyte® that is being formulated for both intravenous and
topical delivery. The company has commercialized 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.DermacyteUS.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 management transition, and expansion of research and
development of the Oxycyte and DERMACYTE product lines, including the
timing of the introduction of these 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 Form 10-Q filed on September 19, 2011, and our annual report
on Form 10-K filed on July 15, 2011, as well as other filings with
the SEC. 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
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

end of announcement euro adhoc
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issuer: Oxygen Biotherapeutics Inc.
One Copley Parkway, Suite 490
US-27560 Morrisville, NC
phone: +1 (919) 855 21 12
FAX: +1 (919) 806 44 17
mail: e.corliss@oxybiomed.com
WWW: www.oxybiomed.com
sector: Biotechnology
ISIN: US69207P2092
indexes: SSIRT
stockmarkets: Nasdaq: New York, Main Standard: SIX Swiss Exchange
language: English