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Oxygen Biotherapeutics, Inc. Announces Closing of Private Placement Financing Agreement

COSTA MESA, Calif., July 16 /PRNewswire-FirstCall/ -- Oxygen Biotherapeutics, Inc. (OTC Bullletin Board: OXBO) today announced that the company has closed on the first $5 million financing tranche with the Vatea Fund, Segregated Portfolio under a June 8, 2009 securities purchase agreement.

For additional details on the agreement, please see the Form 8-K filed with the SEC on June 8, 2009, which is available on the SEC website at www.sec.gov and through the investor relations page of the company website at www.oxybiomed.com.

About Oxygen Biotherapeutics, Inc.

Oxygen Biotherapeutics, Inc. is dedicated to commercializing innovative pharmaceuticals and medical devices in the field of oxygen therapeutics and Defense Medicine(TM). The company has under development a perfluorocarbon (PFC) therapeutic oxygen carrier and liquid ventilation product (Oxycyte(R)) and has out-licensed an implantable glucose sensor. These products are based upon core technologies that include biomedical applications for PFCs as well as medical and industrial applications for biosensors. Each of the product candidates is designed with advantages over currently marketed products in major markets including traumatic brain injury, sickle cell crisis pain, trauma, wound care, decompression sickness, acute respiratory distress syndrome, stroke, myocardial infarction, surgery, diabetes and cosmetic applications. More information is available at www.oxybiomed.com.

SOURCE Oxygen Biotherapeutics, Inc.

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