OXIS Phase IIA Licensed Compound Significantly Reduces Damage from Heart Attack in Diabetic Mice.

FOSTER CITY, Calif. -- OXIS International, Inc. (OTCBB: OXIS) (Nouveau Marche: OXIS) (FWB: OXI) commented today on an earlier announcement by Alteon (Amex: ALT) that BXT-51072 (ALT-2074), a compound that OXIS developed and subsequently licensed to Alteon, has been shown to significantly reduce the myocardial damage in a diabetic mouse heart injury model.

"We congratulate Alteon's team on this important step towards the development of a potentially effective future treatment for high-risk diabetic patients," stated Marvin S. Hausman, M.D., Chairman and CEO of OXIS International. "This study is also a significant example of the association of a disease with a marker of oxidative stress, and provides further evidence that oxidative stress biomarkers may prove valuable in the diagnosis, treatment and especially the monitoring of a patient's response to treatment in some of today's most prevalent diseases."

BXT-51072 (ALT-2074), licensed by OXIS to Alteon in September 2004, is a low molecular weight oral drug that mimics the antioxidant enzyme glutathione peroxidase. It directly neutralizes hydrogen peroxide and appears to protect cells from oxidative and inflammatory damage. OXIS previously completed a multi-center, nonrandomized, open-label, two-arm clinical trial, which showed BXT 51072 to be active in the treatment of inflammatory bowel disease by mitigating the symptoms of ulcerative colitis, and demonstrating a direct correlation with oxidative stress. The trial also assessed the safety and efficacy of BXT 51072 but due to the lack of financial resources, OXIS ceased further testing in late 1999.

In September 2004, OXIS licensed to Alteon the exclusive worldwide rights in defined areas of cardiovascular indications to develop, manufacture and market BXT-51072.

OXIS intends, contingent on its ability to secure additional financing, to further investigate the safety and efficacy of the BXT-51072 therapeutic compound for gastrointestinal indications, including inflammatory bowel disease.

About OXIS and BioCheck:

OXIS International, Inc. develops technologies and products to research, diagnose, treat and prevent diseases of oxidative stress/inflammation associated with damage from free radical and reactive oxygen species. The company holds the rights to three therapeutic classes of compounds in the area of oxidative stress, and has focused commercialization programs in clinical cardiovascular markers, including MPO (myeloperoxidase) and GPx (glutathione peroxidase), as well as a highly potent antioxidant, Ergothioneine, that may be sold over-the-counter (OTC) as a dietary supplement. OXIS has acquired a 51% interest in and has the option to purchase the remaining 49% of BioCheck.

BioCheck, Inc. is a leading provider of high-quality enzyme immunoassay research services and products including immunoassay kits for cardiac and tumor markers, infectious diseases, thyroid function, steroids, and fertility hormones. The company operates a 15,000-square-foot, U.S. Food and Drug Administration (FDA) certified cGMP, and ISO device-manufacturing facility in Foster City, California. BioCheck has advanced developmental programs on two promising cancer biomarkers, related to the Id-gene, and the HMGA2 gene. Id proteins play a significant role in the process of tumor-related angiogenesis and other functions related to blood vessel formation. The HMGA2 gene has been implicated in aggressive forms of breast cancer.

More information about OXIS, BioCheck and its products, services as well as current SEC filings may be obtained by visiting http://www.oxis.com, http://www.oxisresearch.com and http://www.biocheckinc.com.

The statements in this press 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, statements regarding our expectations, objectives, anticipations, plans, hopes, beliefs, intentions or strategies regarding the future. Forward-looking statements in this release include statements that: contingent on its ability to secure additional financing, OXIS intends to further investigate the safety and efficacy of the BXT-51072 therapeutic compound for gastrointestinal indications, including inflammatory bowel disease. Factors that could cause actual results to differ materially from the forward-looking statements include risks and uncertainties such as (1) failure to complete our acquisition of BioCheck or to adequately integrate the operations of the two companies; (2) failure to achieve any benefits in connection with the recent changes in management or personnel; (3) disruption in operations due to the relocation plan and reduction in workforce; (4) failure to comply with our obligations under the debenture transaction agreements or to repay the debentures when such payments are due; (5) inability to hire employees or management; (6) failure to make payments when required under our Mutual Services Agreement with BioCheck to avoid termination; (7) failure to find alternative suppliers; (8) failure to develop or market products successfully; (9) failure to obtain necessary financing; (10) the cost of complying with regulatory requirements; (11) uncertainties exist relating to issuance, validity and ability to enforce and protect patents, other intellectual property and certain proprietary information; (12) our products may not meet product performance specifications; (13) new products may be unable to compete successfully in either existing or new markets; (14) availability and future costs of materials and other operating expenses; (15) weakness in the global economy and changing market conditions, together with general economic conditions affecting our target industries, could cause our operating results to fluctuate; (16) miscalculations in the assessment of our cash position; and (17) our failure to accurately predict the impact of the adoption of certain accounting standards, 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 company's annual report on Form 10-KSB filed with the Securities and Exchange Commission on March 31, 2006 and the company's quarterly reports on Form 10-QSB filed thereafter.