(OXBT) Issued U.S. Patent for Dermatologic Indications

Marks Company’s 9th Patent Issued

Oxygen Biotherapeutics, Inc., (“OBI”) (NASDAQ: OXBT) a developer of oxygen-carrying therapeutics, today announced that the United States Patent and Trademark Office has issued the Company patent#8,513,309, titled, “Perfluorocarbons for use in Treating Pruritus.” This patent addresses methods for treating pruritus (itching), a sensation that a patient instinctually attempts to relieve by rubbing or scratching.

The newly issued patent addresses part of the global dermatological drugs market, which is projected to reach $24.4 billion by 2015, according to market research firm Visiongain. The Company is currently evaluating commercialization strategies, which may include out-licensing, for prescription dermatologic indications of PFC-based products for conditions including allergic contact dermatitis, psoriasis and acne.

Among several beneficial properties, the Company’s platform technology of proprietary perfluorocarbons (PFCs) carry 4 times more oxygen than red blood cells (RBCs), have 20 times higher oxygen solubility than water, and form stable emulsions 35 – 40 times smaller than RBCs.

In May of 2012, Oxygen Biotherapeutics completed a clinical study in which its proprietary PFC-based emulsion showed efficacy in relieving histamine-induced pruritus. Efficacy in treating pruritus was assessed, as reported by each subject using a Visual Analogue Scale, a validated instrument used to evaluate itch in clinical studies. The randomized, double-blind, placebo-controlled study which included 30 healthy male and female volunteers aged 18-65 showed that there was a profound drop in itch sensation when the Company’s PFC-based topical treatment was applied.

“This latest patent builds upon our family of patents that address dermatologic conditions. While our focus is the development of PFCs for critical indications, we seek to unlock the value of our IP through out-licensing non-core indications including those in dermatology,” stated Michael Jebsen, Interim CEO, President and Chief Financial Officer.

Oxygen Biotherapeutics now owns or in-licenses 9 issued patents for medical and dermatological conditions with an average remaining life of approximately 18 years. Oxygen Biotherapeutics relies on a combination of use, method, therapeutic, delivery and composition patents, patent applications, trade secrets, and proprietary know-how in order to protect its medical products. The Company is also expanding its IP portfolio by exploring new high-potential therapeutic applications through third-party research collaborations.

“Perfluorocarbons for use in Treating Pruritus” Patent Abstract:

The subject application provides a method of treating pruritus comprising administering to the skin of a subject afflicted with pruritus an amount of perfluorocarbon effective to treat the pruritus. The subject application provides a method of alleviating a symptom of psoriasis comprising administering to the skin of a subject afflicted with psoriasis an amount of a perfluorocarbon effective to alleviate the symptom of psoriasis. The subject application also provides a perfluorocarbon composition for use in treating a subject afflicted with pruritus or psoriasis. The subject application further provides a pharmaceutical composition comprising an amount of perfluorocarbon for use in treating pruritus or psoriasis.

About Oxygen Biotherapeutics, Inc.

Oxygen Biotherapeutics, Inc. is developing medical 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. Dermacyte is now out-licensed to Valor Cosmetics of Switzerland.

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, 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 our annual report on Form 10-K filed on June 26, 2013, 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.