Oxygen Biotherapeutics, Inc. (“OBI”) (NASDAQ: OXBT) is pleased to report that the U.S. Navy plans to initiate preclinical studies to investigate the potential use of OBI’s proprietary perfluorocarbon emulsion, Oxycyte ®, as an intravenously delivered adjunctive treatment for complex infected wounds and related injuries. This research will be conducted under a Cooperative Research and Development Agreement. The primary purpose of the research is to assess the efficacy of Oxycyte for the treatment of infected and/or ischemic wounds. The study protocols and timeline are under development at this time. “The concept of utilizing our perfluorocarbon emulsion as a way to bolster the delivery of oxygen to wounds from inside the body is new and fascinating. It is a step beyond our initial research effort that focused on the topical delivery of perfluorocarbons for wound healing in the form of a gel. The intravenous delivery of Oxycyte may work in a fashion similar to hyperbaric oxygen therapy by increasing the oxygen transport capacity of plasma and delivering oxygen to the damaged tissue to aid in repair. This is an early stage concept and we are hopeful that the Navy’s research will yield the information necessary to determine if this is a viable wound therapy,” said Michael Jebsen, President and Chief Financial Officer of OBI. About Oxygen Biotherapeutics, Inc. 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 called Oxycyte ® that is currently in clinical and preclinical studies for intravenous delivery for indications such as traumatic brain injury, decompression sickness and stroke. The company is also developing PFC-based creams and gels for topical delivery to the skin for dermatologic conditions and potentially wound care. In addition, the Company has commercialized its Dermacyte ® line of skin care cosmetics for the anti-aging market. 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. 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 Form 10-Q filed on September 19, 2012, and our annual report on Form 10-K filed on July 24, 2012, as well as other filings with the SEC. 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.