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OxySure Systems, Inc. (OXYS) Corporate Presentation August 2014

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Oxys stonegate deck august 2014 redchip

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Page 1: Oxys stonegate deck august 2014 redchip

OxySure Systems, Inc. (OXYS)

Corporate Presentation August 2014

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Forward Looking Statements

The following may contain forward-looking statements that involve risks and uncertainties, including uncertainties associated with the medical device industry. Except for the historical information contained herein, the matters set forth in this communication, including statements relating to our growth strategy, financial results, product approvals, and development programs, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements speak only as of the date the statements are made and are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events. You should not put undue reliance on any forward-looking statements. Important factors that could cause actual performance to differ materially from the forward-looking statements we make include: range of treatment options, clinical applications, and market acceptance of products and other risks detailed from time to time in our filings with the Securities and Exchange Commission. Our actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors.

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Introduction

Medical Device Company Mass markets

• Business • Consumer

Launch product • OxySure Model 615 • FDA approved, OTC • CE Marking approved

Oxygen from Powder Dry, Inert, Safe: Oxygen on demand

Ready Market AED Companion Market

• US: 2 million unit installed base, growing 8% annually

• Worldwide: 3 million unit installed base, growing 10% annually

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OxySure Model 615: It’s About Time.TM

• Non-Compressed Source • No Training required • Safe • No Prescription Required • Lightweight • Disposable Cartridge • Easy Operation • 6 liters per minute, 15-20

minutes • 99% + Medical oxygen • Rest is moisture

Advantages Benefits & Features

• Safety • No maintenance required • No hydrostatic testing

required • Can be shipped "rescue

ready" • No licenses or permits

required • Ideal AED companion

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We’re Saving Lives!

2,500+, and counting!

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Where is OxySure needed?

• “Bridging the Gap” • Gap = Emergency Onset Arrival of First

Responders • USA Today: Gap is 6 - 15 Minutes • AEDs Address This Gap

“OxySure enables a loved one, bystander or even the person himself to provide oxygen while awaiting the arrival of emergency medical responders.”

Dr. Vincent Mosesso, University of Pittsburgh Medical Center Founder, Sudden Cardiac Arrest Association (SCAA)

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Just like AEDs…

– Average Price: $1,500 (started in $5,000 range) – Batteries and pads replaced every 2 years ($400)

USA, approx. 2 Million units – Growing approx. 8.8% p.a. $1.7 Billion in 2015, USA only ROW, approx. 3 Million units – Growing approx. 10% p.a.

*Rise in demand for AEDs from alternate care and public access segments fueled by Legislation: (1) Cardiac Arrest Survival Act (CASA) (2) State Mandates; and Increasing awareness.

Automated External Defibrillator (AED):

Units sold and pre-positioned since 2001:

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Just like AEDs…

Except… 300x more likely to need

Oxysure vs. AED!

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Problems w/ Existing Emergency Oxygen

• Compressed Cylinders – Explosion hazard – Heavy – Expensive to purchase and maintain

• Chemical Generators

– No widespread consumer application – Produces high heat – Explosion hazard – Highly toxic

• Costs – Range $369 - $899 (OxySure Model 615 - $349)

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• 20,000,000 OSHA Compliant Buildings • 116,000,000 Homes and Apartments • 7,000+ MRI Centers • POC Markets, Alternate Sites • 100,000 K-12 Schools • 6,000,000 Residential Swimming Pools • 925,000 Restaurants • 350,000 Manufacturing Facilities • 325,000 Places of Worship • 16,000 Golf Courses • Airports, Public Use Facilities, Sports Facilities

Where is OxySure Needed?

“Placement” Markets

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Who Needs OxySure?

• Cardiovascular Disease – 40 Million Diagnosed – 40 Million Undiagnosed

• Chronic Obstructive Pulmonary Disease (COPD) – 16 Million Diagnosed – 14 Million Undiagnosed – 1.6 Million on Long Term Oxygen Therapy (Back-up)

• Asthma – 22.3 million • General medical & civil emergencies • Travelers to higher altitudes • Private pilots – 400,000 • Over 50

“At Risk” Markets

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How Do We Sell?

OxySure

Distributor Reseller Strategic Accounts Teams

Sales/Marketing Support

Marketing support: Trade shows Media National Safety Congress, ECCU (US) Industrial Hygiene News Medica (Germany) Sports magazines RETTMobil (Germany) Education newsletters Hospitalar (Brazil) Online

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Where Are We Today in US?

Municipalities

Manufacturing/Commercial

Churches/Places of worship

Colleges • U Texas, Purdue, Michigan State, etc.

K-12 education • 40 States+

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Where Are We Today Outside US?

Others pending

Hong Kong, Macau, Chile

Netherlands, Belgium, Luxembourg

Australia, New Zealand, UK

Brazil, Turkey, South Africa

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Manufacturing/Operations

GMP / ISO 13485 Scalable

100% Made in USA

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Product Diversification

Model 615

Wall boxes

Resuscitation bags Thermal bags

Automated External

Defibrillators (AEDs)

Accessories

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Future product development

OxyPak Military Special Forces / Commercial First Responders

Self-Contained, Self-Rescuer Solution Mining / Navy markets (30 M + units)

Consumable Flex-Pak Sports & Recreation (100 M + units)

Aviation Lav units / specialty applications

Automobile market “Drop down” for deployment in any accident

Wound care / Skin care markets

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Key Facts Share Statistics

Trading Symbol.............................Other OTC:OXYS

Stock Price (as of 5/28/2014)…..........................$0.84

Shares Outstanding……..……………..…………25.97M

52wk Range...………………………………..$0.51- $0.90

3 Month Avg. Volume...…….…………………...19,013

Market Capitalization..….………………….…$21.81M

Enterprise Value..…………………................$22.09M

Financials

Revenue (TTM)……..……………………………..$1.92M

Operating Income (TTM) ………………...….($0.56K)

Cash Flow from Operations (TTM)…….($906.42K)

EBITDA…………………………………………....($427.38K)

EPS (TTM)……………………………………..………($0.03)

Cap Structure

Cash on Hand…………..…………………….….…$150.67K

Quarterly Cash Burn Rate…………………..........$200K

Total Debt……………………………...................$684.93K

Shareholder Equity…………..……….….….…....$2.77M

Other

Full-time Employees………......................................24

Fiscal Year Ends………………....…………….December 31

Website…………………………………………....oxysure.com

Corporate HQ………………..……………………...Frisco, TX

0.550.750.951.151.351.55

OxySure Systems, Inc. (OTCPK:OXYS) - Share Pricing

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FY 2013 Financial Highlights

• Revenues were $1.8 million, up 566% • Gross profit up 55.4%; gross margins up to 72.8% from 46.8% • G&A expense was down 3% • Notes payable down 26.3% to $349,975 • Working capital increased $2,173,647 to a surplus of $747,473 • Current ratio up to a healthy 1.88 • Stockholder equity increased by $2,339,709 • Net loss per share down to $.03 from $.06 last year

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FY 2013 Financial Results

47 $127

$270

73

$1,310

$1,800

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Gross margin (%) Gross profit Revenues

FY 2012FY 2013

Up 566%

Up 934%

Up 55%

Y/Y Results – FY13 v FY12 (in thousands)

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FY 2013 Financial Results

14

$(1,426)

$916 $879 658 $748

$1,423

$2,352

(2,000)

(1,500)

(1,000)

(500)

-

500

1,000

1,500

2,000

2,500

3,000

Cash Working capital Stockholderequity

Total assets

FY 2012FY 2013

Y/Y Results – FY13 v FY12 (in thousands)

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2Q 2014 Financial Highlights

• Revenues were $678,111, up 42% • Gross profit up $89,656 or 27.7% to $413,255 • Other income up 123% to $42,465 • SG&A up 26% to $689,248 • Net loss per share flat at $.01 for the quarter • Model 615 shipments up 65%

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2Q 2014 Financial Results – c

68

$324

$476

61

$413

$678

-

100

200

300

400

500

600

700

800

Gross margin (%) Gross profit Revenues

2Q20132Q2014

Up 42%

Up 27%

Down 10%

YOY Results – 2Q14 v 2Q13 (in thousands)

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Income Statement Trends ($ in thousands)

Annual Q1 Q2 Q3 Q4 Annual Q1 Q2

12/31/12 3/31/13 6/30/13 9/30/13 12/31/13 12/31/13 3/31/14 6/30/14

FY12 FY13 FY13 FY13 FY13 FY13 FY14 FY14

Sales 270.4 240.4 476.1 545.8 538.0 1,800.3 356.2 678.1

YOY % Growth 46 % 747 % 655 % 428 % 612 % 566 % 48 % 42 %

Cost of Goods Sold 143.8 53.2 152.5 111.1 173.6 490.3 205.6 264.9

Gross Profit 126.6 187.2 323.6 434.7 364.5 1,310.0 150.6 413.3

Gross Margin% 46.9% 77.9% 68.0% 79.6% 67.7% 72.8% 42.3% 60.9%

Operating expense:

Research/Developmt 25.8 36.7 183.4 134.4 1.5 356.0 1.5 276.0

SG&A 1,239 364.0 259.0 344.2 475.0 1,442.1 433.7 413.3

Operating Income (1,138.2) (213.4) (118.8) (43.8) (112.0) (488.1) (284.6) (276.0)

Operating Income% (420.9%) (88.8%) (25.0%) (8.0%) (20.8%) (27.1%) (79.9%) (40.7%)

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Target Growth Metrics

• US Automated External Defibrillator (AED) Market • US Base of 2 million units with 8% annual growth • ROW Base of 1 million units with 10% annual growth

• 10% companion OxySure Model 615 market share • US Base of 200,000 units growing 8% annually

$50 million revenues with 60% gross margins ROW: Base of 100,000 units growing 10% annually

$20 million revenues with 45% gross margins Worldwide base of 300,000 units growing 8.68% annually

$70 million revenues with 55% gross margins • Beyond AED companion market, “fire extinguisher market,” “At Risk” markets

$100+ million revenues with 55% gross margins

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Growth Strategy Next 3-5 Years

• Grow distributors; US +

ROW • Grow strategic

accounts teams • Pursue legislation /

mandates • Aggressively pursue 3

million+ unit ‘AED companion’ market, and 100 million+ unit general placement markets

• Services

Grow Placement Markets Grow At Risk Markets New Vertical Mass Markets

• Pursue insurance

reimbursement (Medicare, private)

• Execute rolling short/long form commercial campaign(s) targeting 100 million+ US and 500 million+ ROW ‘at risk’ customers

• Services

• Military • Mining • Aviation • Sports/Recreation • Skin care • Wound care • Automotive

+ Strategic Alliances

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Summary

• Rapid growth mode • Great market position • Intellectual property • First mover advantage • Key regulatory approvals in place • Large growing and natural markets • “No brainer” strategy to piggy back off of AED growth • Validated lifesaving emergency treatment • Future products, verticals and markets

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OxySure Systems, Inc. OXYS: OTCQB

10880 John W. Elliott Road, Suite 600 Frisco, TX 75034 USA Tel: (+1) 972-294-6450 [email protected] www.OxySure.com

Stonegate Securities, Inc. Renmark Financial Communications, Inc. (214) 987-4121 (416) 644-2020 [email protected] Bettina Filippone: [email protected] http://www.stonegateinc.com/ John Boidman: [email protected] www.renmarkfinancial.com/

Contact Information

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Appendix

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OxySure Leadership

• Julian T. Ross, MBA – Chairman & CEO OxySure founder, technology developer (holds 9 patents) and CEO since inception 25+ years experience in technology, manufacturing, and finance Managed development of our production capabilities, partnerships and alliances, managed the development of

sales, distribution and licensing partnerships, raised in excess of $14 million in debt and equity to fund operations, and took OXYS public in 2011 through an S-1 registration with the Securities and Exchange Commission.

Other experience: Roll-up, technology companies; $315 million high yield debt offering (Merrill Lynch/Salomon Brothers in lead, plus Deutsche Morgan Grenfell, Nomura Securities)

• Jeremy “Jerry” Jones, Director 35+ Years in healthcare leadership Former Chairman/CEO of Apria Healthcare (sold to Blackstone for $1.7 billion) Chairman of On Assignment (NYSE: ASGN), $1.6 billion healthcare services leader

• Vicki Jones, MBA, Director 30+ years experience in management, sales, and customer service , in both B2B and B2C spaces. SVP for AT&T, runs $18 Billion TV and Internet business; leads a team of 18,000 people

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OxySure Leadership • Dr. Vincent Mosesso, Jr., MD, FACEP – Advisory Board

Founder of Sudden Cardiac Arrest Association (SCAA) Medical Director for Pre-hospital Care at the University of Pittsburgh Medical Center (UPMC) Associate Professor of Emergency Medicine at the University of Pittsburgh School of Medicine "Physician of the Year," 1998, Pennsylvania Emergency Health Services Council

• Dr. James R. Winn, MD – Advisory Board 38 Years’ experience in the healthcare industry, both as a policy maker and as a physician in practice Former Chief Executive Officer of the Federation of State Medical Boards (FSMB) of the United States

• Dr. Thomas D. Franklin, Jr. – Advisory Board 40 Years’ experience in medical research, education and leadership Sr. Scientific Advisor to North Texas Enterprise Center for Medical Technology Former President of the Texas Health Research Institute

• Dr. Jonathan E. Burke, DMD – Advisory Board Significant experience in hyperbaric oxygen therapy and received an Attending Hyperbaric Medicine

Certificate in 1996 Oral and maxillofacial surgeon for the Philadelphia Flyers and Phantoms professional hockey clubs

since 1994 • Dr. R. Dean White, D.D.S., M.S. – Advisory Board

35+ Years’ experience in medicine and private practice Past President of the American Board of Oral & Maxillofacial Surgeons

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Recent Milestones 2005 – 2014 FDA

approval (OTC), CE Marking, ANVISA

(Brazil), MOH (Israel)

2010-2006 Nine Patents Issued; Several Pending

2008 GSA contract approved

2013-2012 Recent Distribution Contracts: Medizon, Aero Health,

Grainger; Systemax; AED Professionals

2010 United Nations Vendor

Approved

2010 Expanded into Brazil, Turkey and South Africa

2011/2 Went public via S-1 (OTCQB:OXYS); DTC

Approval; DWAC Approval

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Recent Awards

2011 MedVentures Award

2010 Lone Star Award for Innovation in

Respiratory Technology

2010 IMPACT Awards

2008 World’s Best Technologies

2008 Tech Titans Innovation Award

2009 Featured in Fortune Small Business and

CNN.com

2010 Featured news story on WFAA

Channel 8

2013 US Patent & Trademark Office selects OxySure to first United States Innovation Expo

at Smithsonian Museum

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Sales

Awareness&

Education

Growth Catalysts

Legislation

OxySure Circle of Success

Insurance

Legal

Regulatory

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Annual Trend Analysis

-2.50mm

-2.00mm

-1.50mm

-1.00mm

-0.50mm

0.00mm

0.50mm

1.00mm

1.50mm

2.00mm

2.50mm

OxySure Systems, Inc. (OTCPK:OXYS) - Gross Profit (FY) OxySure Systems, Inc. (OTCPK:OXYS) - Operating Income (FY)

OxySure Systems, Inc. (OTCPK:OXYS) - Total Revenue (FY)

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Quarterly Trend Analysis

-1.00mm

-0.80mm

-0.60mm

-0.40mm

-0.20mm

0.00mm

0.20mm

0.40mm

0.60mm

0.80mm

1.00mm

OxySure Systems, Inc. (OTCPK:OXYS) - Total Revenue (FQ) OxySure Systems, Inc. (OTCPK:OXYS) - Operating Income (FQ)

OxySure Systems, Inc. (OTCPK:OXYS) - Gross Profit (FQ)