EANS-Adhoc: Oxygen Biotherapeutics and Aurum Biosciences Sign Letter of Intent to Explore the Use of Oxycyte® PFC for Imaging and Therapeutic Intervention of Acute Ischemic Stroke

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Research & Development

25.07.2011

MORRISVILLE, NC, July 25, 2011 - Oxygen Biotherapeutics, Inc. (NASDAQ
& 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® 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."

end of ad-hoc-announcement ==========================================
====================================== 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® 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.

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
product line, including 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 report on Form 10-Q
filed on September 9, 2010. 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:
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