CORRECTING and REPLACING Oxygen Biotherapeutics Issues Letter to Shareholders

  CORRECTING and REPLACING Oxygen Biotherapeutics Issues Letter to
  Shareholders

CORRECTION…by Oxygen Biotherapeutics, Inc.

Business Wire

MORRISVILLE, N.C. -- August 7, 2013

The link to the shareholder letter should read:
http://www.oxybiomed.com/news_events_full_article_59.html.

The corrected release reads:

             OXYGEN BIOTHERAPEUTICS ISSUES LETTER TO SHAREHOLDERS

Oxygen Biotherapeutics, Inc., (“OBI”) (NASDAQ: OXBT) a developer of
oxygen-carrying therapeutics, today announced the Company has issued a Letter
to Shareholders.

Highlights of the letter include:

  *Progress in our international Phase IIb clinical trials of Oxycyte® for
    the treatment of traumatic brain injury, a global market projected to
    reach $2 billion by 2017 according to GlobalData

  *Preliminary results from our preclinical trials of Oxycyte® in the U.S.,
    designed to address the FDA’s clinical hold
  *Implementation of our business strategy to focus on the development of
    Oxycyte® for critical indications while out-licensing non-core indications

  *Improved cash position resulting from a $5.4 million funding closed in
    July which provides liquidly to fund projected operating requirements and
    clinical trials through the remainder of fiscal 2014
  *The U.S. Army and U.S. Navy’s Cooperative Research & Development
    Agreements to explore Oxycyte®
  *Out-licensed Dermacyte® cosmetics line to Valor, which has generated
    licensing revenues and reduced our operating expenses
  *Our research partnership with Aurum Biosciences for the development of
    Oxycyte® for the diagnosis and treatment of stroke, a market projected to
    grow to $3.6 billion by 2015 according to GlobalData

To read the letter in full please visit:
http://www.oxybiomed.com/news_events_full_article_59.html

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 in 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.

Contact:

IRTH Communications
Robert Haag, 1-866-976-IRTH (4784)
oxbt@irthcommunications.com