Study Shows Marked Neuroprotective Effects of Oxycyte Perfluorocarbon Emulsion in a Rat Model of Spinal Cord Injury

Study Shows Marked Neuroprotective Effects of Oxycyte Perfluorocarbon Emulsion in a Rat Model of Spinal Cord Injury

Results to be Shown During Poster Session at National Neurotrauma Symposium June 14-16

DURHAM, N.C., June 3, 2010 (GLOBE NEWSWIRE) -- Oxygen Biotherapeutics, Inc. (Nasdaq:OXBT) today reported on the results of two University of Miami Miller School of Medicine studies involving the Company's third-generation perfluorocarbon, Oxycyte(R) perfluorocarbon emulsion. Both study reports showed that Oxycyte(R) has a marked neuroprotective effect in a rat model of spinal cord injury.

"Having proof-of-concept is a first step toward moving Oxycyte down the spinal cord injury track. The positive results observed in both studies may warrant efforts to pursue partnerships to conduct clinical studies of Oxycyte in spinal cord injury in the future," said Gerald Klein, Chief Medical Officer for Oxygen Biotherapeutics.

The studies showed that histologically, Oxycyte improves the volume of preserved neuronal tissue in the spinal cord following injury; a favorable improvement in functional recovery, as assessed by footprint analysis six weeks post treatment, has also been observed.

The study entitled "Possible Role of Hyperbaric Oxygen Therapy (HBO) and Oxycyte After Spinal Cord Injury in Rats," will be part of the poster sessions at the National Neurotrauma Symposium on June 14-16, 2010 at the Paris Hotel in Las Vegas. Results of the first study entitled "Evaluation of the Neuroprotective and Behavioral Effects of the Perfluorocarbon Oxycyte After Spinal Cord Injury (SCI) in the Rat" were presented in September 2009 at the annual National-International Neurotrauma Symposium by Dr. Ross Bullock, University of Miami Miller School of Medicine. Both studies received funding from Oxygen Biotherapeutics.

Oxycyte emulsion is a proprietary therapeutic oxygen carrier. It is a perfluorocarbon emulsified with water and a surfactant that is delivered intravenously.

According to statistics from various studies compiled by the National Spinal Cord Injury Statistical Center in Birmingham, AL, an estimated 12,000 new cases of spinal cord injury occur each year in the United States; and the number of people living in the United States with SCI is estimated to be approximately 259,000 people.

About the Company

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(R) that is being formulated for both intravenous and topical delivery. In April, the company launched its first cosmetic product, Dermacyte(R) Oxygen Concentrate. 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 those referring to the plans for the expansion of development of the Oxycyte product line 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 the 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 8-K on May 4, 2010. Furthermore, there can be no assurance that such plans will lead to meaningful sales of Dermacyte or generate any revenue for the company. 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, Inc.         Ellen Corliss, Vice President, Corporate Communications          & Investor Relations         (919) 806-4405