OXIS International, the Antioxidant Company, Announces That the Launch of Its New Potent Antioxidant Ergothioneine is Planned for 2005.

PORTLAND, Ore. -- OXIS International, Inc. (OTCBB: OXIS) (Nouveau Marche: OXIS) today announced that availability of its potent antioxidant, Ergothioneine, is planned to occur before the end of 2005.

Steven T. Guillen, President and CEO of OXIS stated, "The benefits of antioxidants are becoming more obvious to both physicians and patients. Some of the largest pharmaceutical companies in the world, such as Pfizer (NYSE:PFE) and GlaxoSmithKline (NYSE:GSK), have products that feature their antioxidant properties. Ergothioneine is one of the most powerful antioxidants available, and can provide safe and effective remedies for patients. Its availability over-the-counter planned for later this year promises to provide a valuable nutraceutical supplement."

Ergothioneine is an important supplement because it concentrates in tissues and organs that undergo the most oxidative stress in humans, yet ergothioneine must be ingested in humans because the body does not produce it. OXIS has developed a synthetic source that matches the natural ergothioneine used as an antioxidant in humans. OXIS has 15 patents, either issued or patent applications filed, within the US and around the world on its proprietary manufacturing process.

Several key events took place prior to today's announcement. In December of 2004, OXIS raised $6.5 million from the investment community, retired almost all of its debt, and retained enough operating funds to be in a position to attempt to move ergothioneine quickly into the over-the-counter nutraceutical market.

Last week, the journal Science announced the recent results from a University of Washington study demonstrating the powerfully positive effects of antioxidants. The study found that mice with the higher level of antioxidants had healthier heart tissue than normal mice. This new study provided some of the most compelling evidence that oxidative stress plays a crucial role in age-related diseases.

The role of ergothioneine as an antioxidant and cellular protectant has been well documented. Ergothioneine localizes within certain cells, such as erythrocytes, making it unique among other naturally occurring antioxidants such as vitamin C and E. The benefits of natural antioxidants such as vitamin C and E in treating cancer, aging and general health issues are well known. Ergothioneine is the only antioxidant that chelates, or combines with, heavy metals, while protecting cells (principally erythrocytes) from damage. The antioxidant properties of ergothioneine appear to be related to at least four molecular activities: the ability to scavenge directly reactive oxygen species; to chelate various divalent metallic cations (positively charged ions); to activate antioxidant enzymes such as glutathione peroxidase (Se-GPx) and MnSOD and to inhibit superoxide-generating enzymes such as NADPH-Cytochrome c reductase; and to affect the oxidation of various hemoproteins such as hemoglobin and myoglobin.

OXIS plans to launch ergothioneine in 2005, with the first products planned to be available as over-the-counter supplements to help combat many age-related diseases ranging from Alzheimer's to cancer. In the future, OXIS plans on exploring alternative formulations that will allow patients to utilize ergothioneine in products designed for a variety of diseases, including dermal protectants in sunscreens and protective cosmetics, and topical ophthalmic preparations to replenish the loss of antioxidants experienced during cataract development.

About OXIS

OXIS International Inc., headquartered in Portland, Oregon, focuses on developing technologies and products to research, diagnose, treat and prevent diseases associated with damage from free radical and reactive oxygen species - diseases of oxidative stress. The company holds the rights to three therapeutic classes of compounds in the area of oxidative stress, and develops, manufactures and markets products and technologies to diagnose and treat diseases caused by oxidative stress.

Statements in this release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, any statements regarding beliefs, plans, estimates, projections, expectations, goals or intentions regarding the future. Forward-looking statements in this release include statements regarding ergothioneine's promise to provide a valuable nutraceutical supplement; the Company being in a position to move ergothioneine quickly into the over-the-counter nutraceutical market; the Company's commercialization plans to launch ergothioneine in 2005, with the first products available as over-the-counter supplements to help combat many age-related diseases ranging from Alzheimer's to cancer; the antioxidant properties of ergothioneine; the Company's plans to explore alternative formulations that will allow patients to utilize ergothioneine in products designed for a variety of diseases, including dermal protectants in sunscreens and protective cosmetics, and as a topical ophthalmic to replenish the loss of antioxidants experienced during cataract development. Factors that could cause actual results to differ materially from the forward-looking statements include risks and uncertainties such as unforeseen difficulties related to the Company's oxidative stress and other diagnostic products; decreases in the rate of spending by the Company's customers; the development by the company's competitors of new competing products; and other risks indicated in the Company's filings with the Securities and Exchange Commission. It is important to note that actual outcomes could differ materially from those in such forward-looking statements. Readers should also refer to the documents filed by the company with the Securities and Exchange Commission, specifically the annual report on Form 10-KSB for the year ended December 31, 2004, filed with the Securities and Exchange Commission on February 25, 2005 (SEC File No. 000-08092), and the Company's Amendment No. 1 to Form SB-2 Registration Statement filed with the Securities and Exchange Commission on April 29, 2005 (SEC File No. 333-123008).