EANS-Adhoc: Oxygen Biotherapeutics Reports Second Quarter FY2012 Financial Results. -Management to host teleconference to discuss financial results on December 19-

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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

17.12.2011

MORRISVILLE, NC, December 16, 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 Second Quarter Fiscal Year
(FY) 2012 ended October 31, 2011. Oxygen´s management will host a
live teleconference on Monday, December 19, 2011 at 11 a.m. to
discuss the results.

Highlights (through Dec. 14, 2011)

•Closed registered direct financing for up to $7.5 million in gross
proceeds •Board member Dr. Ronald Blanck named Chairman of the Board
of Directors •CFO Michael B. Jebsen named President and interim Chief
Executive Officer •Voluntarily withdrew listing on the SIX Swiss
Stock Exchange effective in January 2012 due to low trading activity
as part of an overall cost-reduction effort

Second-Quarter Results

Oxygen Biotherapeutics reported net revenue of $95,159 for the second
quarter of fiscal 2012, compared to $27,126 for the comparable
quarter in the previous fiscal year. The increase was due primarily
to direct cost reimbursements for work performed under our
preclinical Oxycyte® PFC studies funded by the U.S. Army partially
offset by a decrease in product sales. The decrease in product sales
was due to a reduction in the size of our sales force during the
quarter as we continue to focus selling efforts in specific
geographical markets.

Gross margin as a percent of revenue for the period ended October 31,
2011 was 62%, compared to 75% for the three months ended October 31,
2010 due primarily to changes in the product sales mix.

Total operating expenses for the period ended October 31, 2011, were
$2,149,387 compared to $2,083,863 for the same period in 2010. The
increase in operating expenses in the quarter was due primarily to an
increase in general and administrative costs; partially offset by
decreases in marketing and sales expenses and research and
development costs.

The increase in general and administrative expenses for the three
months ended October 31, 2011 was driven primarily by an increase in
legal fees, consulting costs and the severance accrual for a retired
director; partially offset by a decrease in compensation expense,
travel related expenses, and amortization of intangible assets.

The decrease in marketing and sales expenses for the three months
ended October 31, 2011 was driven primarily by a reduction in costs
incurred for direct advertising, partially offset by an increase in
the costs incurred for compensation.

The decrease in research and development expenses for the three
months ended October 31, 2011 was driven primarily by a reduction in
compensation and contract research organization (CRO) costs;
partially offset by an increase in consulting costs and Oxycyte PFC
development costs.

For the second quarter ended October 31, 2011, the Company reported a
net loss of $2,929,923, or $0.12 per share, compared to a net loss of
$2,051,937, or $0.09 per share for the same period in the prior year.

Six-Month Results

Net revenue for the six months ended October 31, 2011 was $120,032
compared to total revenue of $32,236 for the same period in fiscal
year 2011. This increase was primarily due to grant revenues earned
in the current quarter. Product revenue also increased slightly for
the six months ended October 31, 2011 compared to the same period in
the prior year due to shipments to our distributor in Mexico.

Gross profit for the six month period ended October 31, 2011 was 48%
as compared to 75% for the six months ended October 31, 2010. This
decrease was primarily due to sales through distribution channels.

For the six-month period ending October 31, 2011 the company had
total operating expenses of $4,602,337 compared to $5,112,174 for the
same period in 2010. This decrease was primarily due to reduced
research and development costs and a slight reduction in general and
administrative expenses; partially offset by increased costs for
marketing and sales expenses.

The decrease in research and development expenses for the six months
ended October 31, 2011 was driven primarily by a reduction in CRO,
compensation and product development costs; partially offset by an
increase in consulting costs.

The decrease in general and administrative expenses for the six
months ended October 31, 2011 was driven primarily by a decrease in
compensation expense, travel related expense, and amortization of
intangible assets; partially offset by an increase in legal fees,
consulting costs and the severance accrual for a retired director.

The increase in marketing and sales expenses for the six months ended
October 31, 2011 compared to the same period in the prior was driven
primarily by an increase in the costs incurred for compensation
offset by a slight reduction in costs for direct advertising.

The Company reported a net loss of $5,798,992, or $0.25 per share for
the six month period ended October 31, 2011, compared to a net loss
of $5,054,236, or $0.22 per share for the same period in 2010.

As of October 31, 2011, the Company had cash and cash equivalents
totaling $2,004,257, up from $951,944 at April 30, 2011.

"The company is making significant strides toward meeting our
objectives despite having a quarter impacted by management and board
changes. We have secured our cGMP manufacturer for Oxycyte PFC
emulsion which will allow us to scale up our manufacturing process
and ensure we are able to support not only our TBI trial, but also
our partners as they continue to progress through their preclinical
studies under ongoing Material Transfer Agreements and Cooperative
Research and Development Agreements. Our recent closing of a $7.5
million registered direct financing will allow us to focus on
developing our product candidates well into calendar year 2012. We
are continuing to evaluate all of our existing development programs
to ensure all of our Company´s resources are allocated as efficiently
and effectively as possible in our efforts to control our overhead
and further reduce our costs," said Michael Jebsen, Chief Financial
Officer and Interim Chief Executive Officer.

end of ad-hoc-announcement ==========================================
====================================== Conference Call

Management will host a conference call on Monday, December 19, 2011
at 11 a.m. EST. To access the live teleconference dial (800) 510-0178
(U.S. and Canada) or (617) 614-3450 (international.) The participant
passcode is 89311217. 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 96461628.

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 PFC-based oxygen carriers for use in traumatic brain
injury, decompression sickness, and topical wound healing. See
www.oxybiomed.com, or www.DermacyteUS.com for more information.

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.

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