DURHAM, N.C., Dec. 16, 2010 (GLOBE NEWSWIRE) -- Oxygen Biotherapeutics, Inc. (Nasdaq:OXBT) (SIX Swiss Exchange:OXBT) and privately held Sarasota Medical Products, Inc. (SMP) of Sarasota, FL, today announced they signed a Binding Letter of Intent to determine the feasibility of pursuing a joint research and development venture for treating chronic ischemic wounds. The venture will be based on combining Oxygen's Wundecyte PFC formulation with SMP's topical medical devices.

Oxygen Biotherapeutics' Wundecyte product is a novel gel under development. It is designed to be used as a wound-healing agent that delivers oxygen to a wound alone, or in combination with a specialized oxygenating bandage. SMP's oxygen delivery devices include WoundSeal I, a chambered device specifically designed to deliver liquids and gels to a wound surface; WoundSeal II, a dressing with a plurality of layers designed to deliver one or more beneficial materials to the skin for the treatment of chronic wounds and burns; and OxyShield, a topical oxygen chamber designed to deliver hyperbaric oxygen to acute and chronic wounds to aid in initiating angiogenesis. Patents are filed for all three devices.

"Chronic wounds can be extremely painful, debilitating and lower a person's quality of life significantly. Unfortunately, some wounds remain recalcitrant for years. As the incidence of diabetes grows and as our Baby Boomer population ages, we expect to see an increase in the number of wound care patients. We believe Sarasota Medical, founded by experts who honed their skills at leading wound healing companies, is an innovative, rising leader in this field. We look forward to working with them to develop oxygen-based products for treating wounds," said Gerald Klein, M.D., Chief Medical Officer of Oxygen Biotherapeutics.

"Health care reform and efficacious medical treatments are not polar opposites, in fact the solutions to these fundamental problems are often found by combining technologies. Sarasota Medical Products has sought out many strategic partners who have cutting edge technologies to help patients and reduce hospital stays. Oxygen Biotherapeutics' Wundecyte™ product is an unprecedented oxygen carrier that can be combined with our technologies to offer a superior delivery system. We are excited about our future collaboration with Oxygen Biotherapeutics' talented team and we are looking forward to building products for the future," said SMP President and Chief Executive Officer Walt F Leise, III, PhD, MBA.