DURHAM, N.C. and ZURICH, Switzerland, Jan. 12, 2011 (GLOBE NEWSWIRE) -- Oxygen Biotherapeutics, Inc. (Nasdaq:OXBT) (SIX:OXBT) today announced it has entered into an agreement with the newly formed, independently owned and operated DERMACYTE Switzerland Ltd. (DSL) of Zurich for the sale of DERMACYTE products. Per the terms of the agreement, DSL has exclusive rights to sell and distribute Oxygen Biotherapeutics' DERMACYTE ® skin care products that it purchases throughout the European Union, Switzerland and Russia. The agreement also grants DSL the option to add South America as an exclusive territory if purchase volume milestones are achieved.
Per the terms, DSL commits to purchase a total of 40,000 units of DERMACYTE products by calendar year-end 2011. One-thousand units of DERMACYTE products were purchased prior to signing this agreement. After December 31, 2011, the agreement calls for an annual growth rate of 10 percent in units purchased during the preceding calendar year.
Oxygen Biotherapeutics does not have an ownership stake in DSL. It has granted rights to DSL to use the product trademark."Expansion into Europe is a key component of our overall sales strategy for DERMACYTE skin care products and we believe that DSL will allow us to reach this key customer base," said Chris Stern, Chairman and Chief Executive Officer of Oxygen Biotherapeutics. "The market opportunity for oxygen-based skin care treatments in Switzerland, Russia and the EU is strong, yet in our opinion, existing products have not lived up to their promise. Oxygen Biotherapeutics has developed two remarkable skin care lotions that get rave reviews from numerous beauty industry influencers who have used the products in the United States," said Oskar Kaelin, founder of DSL. "We believe our new markets will respond favorably to DERMACYTE as well." About DERMACYTE Cosmetics DERMACYTE Oxygen Concentrate is a scientifically designed, proprietary cream made to enhance oxygen delivery to skin. It is the first product in a broad and diverse cosmetic line currently under development by Oxygen Biotherapeutics. It complements DERMACYTE Oxygenating Eye Complex, which has several ingredients, such as avocado essence, soothing oat kernel, Vitamin C, sunflower oil and antioxidants that target the eye contour area. The DERMACYTE skin care line uses the Oxygen Biotherapeutics' oxycyte technology (an oxygen carrier) to deliver oxygen to tissues, such as skin.