OXIS International Reports Financial Results for First Quarter 2006 Product Revenues Increase 140% over 2005 New Cardiac and Cancer Research Products and Value Pricing to Drive Sales Volume Results Include 51% Ownership

International Reports Financial Results for First Quarter

Revenues Increase 140% over 2005

Cardiac and Cancer Research Products and Value Pricing to Drive Sales Volume

Include 51% Ownership in BioCheck, Inc. Beginning in December

City, CA (May 9, 2006) - Oxis International, Inc. (OTCBB: OXIS.OB) (Nouveau

March : OXIS) (FWB: OXI) today reported results for the first quarter

International is a biopharmaceutical company focused on commercializing research

assays, nutraceutical and therapeutic products related to oxidative stress

through its majority interest in BioCheck, a leading provider of high quality

immunoassay clinical kits and contract services.

basis, OXIS reported a net loss of $0.7 million, or $0.02 per share, for

the first quarter of 2006 compared to a net loss of $0.2 million, or $0.01

per share, for the first quarter of 2005. In the fourth quarter of 2005, the

Company's net loss was $2.2 million, or $0.05 per share. The consolidated

financial statements for the three months ended March 31, 2006 include

the results of operations and the assets and liabilities of BioCheck at

December 31, 2005 and March 31, 2006.

for the first quarter of 2006 were $1.5 million, an increase of

$0.9 million, or 140%, over the same period last year, and

$0.7 million over the fourth quarter of 2005. Cost of product revenues on a

GAAP basis were $0.8 million for the first quarter of 2006, an increase of

$0.5 million, or 185%, from $0.3 million incurred in the first quarter

of 2005. Total operating expenses on a GAAP basis were $1.3 million for the

first quarter of 2006, an increase of $0.7 million, or 114%, from

$0.6 million incurred in the first quarter of 2005. Gross profit as a

percentage of revenues was 46% in first quarter of 2006.

ended the quarter with approximately $0.7 million in cash and cash

equivalents of which $0.5 million was held by OXIS and $0.2 million

was held by its majority-owned subsidiary, BioCheck, Inc.

Company also reported the following highlights for the first quarter

successful consolidation of the key product manufacturing, sales and marketing

functions of OXIS and BioCheck, we are beginning to realize significant merger

synergies," stated Steve Guillen, President and CEO of OXIS International. "We

are now able to offer our life sciences research and clinical customers a more

comprehensive menu of products that are known for their high quality, stability

and strong technical support."

consolidation of the companies' operations has resulted in improved margins in

the first quarter of 2006 and combined lower manufacturing costs than incurred

by each company prior to the relocation of OXIS' operations to Foster City,

California and, as a result, has allowed OXIS to implement new value pricing

programs. These initiatives are expected to drive revenue and product profit

margin expansion for both companies.

International, Inc. develops technologies and products to research, diagnose,

treat and prevent diseases of oxidative stress associated with damage from

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)

dietary supplement. OXIS has acquired a 51% interest in and has the option

purchase the remaining 49% of 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.

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.biocheckinc.com.

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

that could cause actual results to differ materially from the forward-looking

statements include risks and uncertainties such as the acquisition of the

remaining 49% of the BioCheck shares by OXIS not closing due to, among other

reasons, the inability of OXIS to close a financing transaction; the risks

inherent in integrating an acquired business; risks inherent in owning a

majority interest in a company; unforeseen difficulties in achieving synergies

following an acquisition; unforeseen difficulties related to the company's

oxidative stress and other diagnostic products; 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

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 current report on Form 8-K filed with

Securities and Exchange Commission on April 4, 2006.

Consolidated Statement of Operations

thousands, except per share amounts)

Consolidated Balance Sheets