Exhibit 99.1

                      Press release dated January 5, 1998


  OXIS INTERNATIONAL COMPLETES ACQUISITION OF INNOVATIVE MEDICAL SYSTEMS CORP.



PORTLAND, ORE. -- JANUARY 5, 1998 -- OXIS International, Inc. (NASDAQ:  OXIS), a
leading developer of new products and technologies to diagnose, treat and
prevent diseases caused by oxidative stress, today announced it had completed
the acquisition of 100% of the issued and outstanding capital stock of
Innovative Medical Systems Corp. ("IMS").  IMS specializes in the design,
development and manufacture of custom instruments for the biomedical, industrial
and consumer marketplaces.

"The acquisition of IMS accomplishes three major objectives for the health
products group of OXIS,"  Ray R. Rogers, OXIS' Chairman stated.  "It provides
expertise in the development of diagnostic instruments to support all of our
existing reagent technologies, especially our assays to measure oxidative
stress. In addition, the combination will allow us to complete the development
of a technology platform for wellness testing to support early disease detection
and prevention.  Finally, the anticipated revenue contribution enhances our
present financial situation."

Humberto Reyes, OXIS' Senior Vice President, stated, "This acquisition
represents a strategic investment that further focuses our health product
group's future.  By combining technologies we plan to offer a fully automated
instrument to run a wide array of diagnostic tests including OXIS' existing menu
of proprietary oxidative stress assays.  IMS already has an existing system that
has been modified to run OXIS' reagent technology creating the first automated
oxidative stress testing instrument.  Our conviction is that testing for damage
done by free radicals and reactive oxygen species could provide valuable
information to both assist physicians in the earlier diagnosis of many diseases
and support individuals that proactively use dietary supplements in disease
prevention."

OXIS' proprietary oxidative stress assays are a series of tests to monitor
damage to cells from free radicals and reactive oxygen species.  Oxidative
stress could result in damage to cells and tissue and eventually can cause
disease.  The Company is currently offering these assays for sale to researchers
working in the area of free-radical biochemistry and disease.  OXIS expects the
IMS technology to accelerate its ability to automate its existing research
assays for use in clinical, research and nutritional supplement testing.
 
IMS shareholder will receive a minimum payment of $2,000,000 and up to a
potential maximum of $4,250,000.  These payments will be made in shares of OXIS
common stock over the next five years based on IMS' yearly performance.

IMS' President and founder, Joseph Catarious stated "This opportunity allows IMS
to participate along with OXIS in the automation of oxidative stress and
nutritional supplement testing.  We are delighted to join OXIS and be part of
this exciting future."  Mr. Catarious and the IMS technical staff will continue
to operate out of the IMS facility located in Ivyland, Pennsylvania.  IMS
currently employs 30 people.

OXIS International, Inc. is a drug discovery and diagnostics company focused on
the development of novel therapeutic molecules and supportive technologies to
treat diseases associated with damage from free radicals and reactive oxygen
species i.e., diseases of oxidative stress.  OXIS' lead therapeutic molecule,
BXT-51072, a selenium based small molecule synthetic mimic of glutathione
peroxidase, is currently undergoing clinical trials for inflammatory bowel
disease.

Innovative Medical Systems Corp., founded in 1976, is a designer, developer and
manufacturer of instrument systems for biomedical, industrial, environmental,
and consumer product applications.

Certain of the matters discussed in this press release are forward-looking
statements that involve risks and uncertainties, including the timely
development and market acceptance of new products, the impact of competitive
products and pricing, economic conditions, and other risks detailed from time to
time in the Company's SEC reports.  These factors could cause actual results to
differ materially from those described in any forward-looking statements.

OXIS has headquarters in Portland, Oregon, with research facilities outside
Paris, France.  Visit OXIS International on the World Wide Web at
http://www.oxis.com.

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