DGAP-News: Oxygen Biotherapeutics and Aurum Biosciences Sign Letter of Intent to Explore the Use of Oxycyte(R) PFC for Imaging

Oxygen Biotherapeutics, Inc.

25.07.2011 08:00
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and Therapeutic Intervention of Acute Ischemic Stroke

MORRISVILLE, N.C., 2011-07-25 08:00 CEST (GLOBE NEWSWIRE) —
Oxygen Biotherapeutics, Inc. (Nasdaq:OXBT) (SIX Swiss Exchange:OXBT) and
privately held Aurum Biosciences, Ltd. of Glasgow, Scotland, today announced
they signed a Letter of Intent (LOI) to conduct preclinical research for
imaging and therapeutic intervention of acute ischemic stroke. The research
will be conducted by Aurum using Oxygen–s proprietary Oxycyte(r) PFC
(perfluorocarbon) emulsion in combination with Aurum–s proprietary Glasgow
Oxygen Level Dependent (GOLD) Magnetic Resonance Imaging techniques.

The intent of this research is to better delineate which tissue has been
damaged from a stroke, and to determine the effectiveness of the treatment
being provided to the model. Per the LOI, Aurum will seek funding for this
research.

–Stroke is the third leading cause of death in the world and better treatments
and diagnostics will go a long way toward improving that statistic,– said Chris
Stern, Chairman and Chief Executive Officer of Oxygen. –We are pleased to
collaborate with Aurum on this important research initiative, which clearly is
in line with our strategic vision.–

–Aurum is looking forward to working with Oxygen Biotherapeutics on the
development of a novel stroke product,– said Gerry McGettigan, Chief Executive
Officer of Aurum. –Our combined technology and stroke management product may
for the first time allow us to accurately diagnose acute stroke and treat a
majority of the patients effectively.–

U.S. and U.K. Stroke Statistics

An ischemic stroke occurs when a blood vessel that carries oxygen and nutrients
to the brain is blocked by a clot. When that happens, part of the brain cannot
get the blood and, therefore, the oxygen it needs, so it starts to die.
According to the American Stroke Association, approximately 795,000 Americans
each year suffer a new or recurrent stroke. That means, on average, a stroke
occurs every 40 seconds. Stroke kills more than 137,000 people a year in the
United States alone and is the third leading cause of death behind diseases of
the heart and cancer. On average, every 4 minutes someone dies of stroke. About
40 percent of stroke deaths occur in males, and 60 percent in females.
According to The Stroke Association, an estimated 150,000 people have a stroke
in the U.K. each year, accounting for around 53,000 deaths annually. Stroke is
the third most common cause of death in England and Wales, after heart disease
and cancer. Stroke accounts for 9 per cent of all deaths in men and 13 per cent
of deaths in women in the U.K.

About Aurum Biosciences, Ltd.

Aurum Biosciences is dedicated to protecting lives through the use of its
proprietary imaging technology and novel approach to therapy in areas such as
stroke, cardiovascular disease, oncology and epilepsy. The technology behind
Aurum–s products has come from researchers at the Southern General Hospital in
Glasgow and The University of Glasgow, both leaders in the fields of
neurological, cardiovascular and oncological disease research. Aurum is
currently engaging with investors for the funding of research and development
studies to complement the extremely promising data generated to date.

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(r)
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.

The Oxygen Biotherapeutics, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7277

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 an agreement with Aurum Biosciences Ltd. 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-K filed on July 15,
2011. 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.

CONTACT: Oxygen Biotherapeutics
Ellen Corliss
Vice President,
Corporate Communications&Investor Relations
(919) 855-2112
News Source: NASDAQ OMX

25.07.2011 Dissemination of a Corporate News, transmitted by DGAP –
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The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Oxygen Biotherapeutics, Inc.

United States
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ISIN: US69207P1003
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