Biomagnetics Diagnostics Corporation (OTC: BMGP) through its
wholly owned subsidiary, Biospectrum Technologies holds patented
technologies that can potentially revolutionize the stem cell, genetic
engineering and biotechnology industries.

BMGP is
developing a portfolio of patented technologies covering a wide range of
bacterial and viral assays for use with the Company’s diagnostics systems.
The Company was issued two patents relating to Systems and Methods for
Biochemical Assay in 2003 and 2006, which allowed BMGP to protect its
current technology and product offering and pave the way for a broad
spectrum of applications in both testing and diagnosis. BMGP has also filed
a third patent for a new diagnostic system designed for multi-analytic
testing for blood banks (System and Method for Detecting Specific Binding
Reactions Using Magnetic Label).

The first
product being readied for market is the High Throughput Screening -
Magnetic Testing Platform (HTS-MTP). This diagnostic equipment is designed
to detect the target virus by measuring and defining a single paramagnetic
microsphere attached to each virus molecule in a fraction of the time and
cost of existing immuno assays.

It is
important to note that the HTS-MTP is designed to detect both bacterial and
viral pathogens as well as drugs of abuse using a medium of blood, serum,
saliva, urine, hormonal or even spinal fluid. This is accomplished through
the use of proprietary electronics, and chemistry which include specially
designed sensors, which will detect paramagnetic-microspheres coated with
specific antibodies, and will bind to any antigen (or other specified
target) within the sample. Specific software programs will be designed for
each type of pathogenic assay.

Additionally, no current screening, or confirmatory tests, have
the ability to measure viral load; a critical measurement in developing
drugs and vaccines and determining the effectiveness of health care
treatments. The HTS-MTP is designed to detect the virus and count the viral
load in a matter of minutes, and has the capabilities of screening many
more assays per hour, at a fraction of the cost of current technology. This
will revolutionize the diagnostics industry and be of significant
importance to blood banks around the world.

Company
management has identified certain immediacy in the Latin American and Asian
markets. Therefore, initial Company efforts will focus upon conducting
clinical trials and product registrations, not just in the United States
but in Mexico, Thailand, China and Sweden (Sweden will register our
products throughout Europe) as well. Upon completion of clinical trials in
Latin America and Asia, the company will initiate a 510K registration with
the U.S. Food and Drug Administration (F.D.A). In 2002, HIV diagnostics
tests conducted in the US were 22.158 million and in 2002, Hepatitis B
diagnostic tests in the US is estimated at 31 million.

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High Throughput Screening – Magnetic Testing Platform
(HTS-MTP)

Biomagnetics Diagnostics Corp. has designed a revolutionary
system of diagnostics. Our High Throughput Screening – Magnetic Testing
Platform (HTS-MTP) is designed to detect both qualitative (chemical
identification of the elements present in a substance) and quantitative
(number of specific elements in a substance) results from a single
test.

Today’s
immunoassays (a chemical procedure for detecting infections) detect
specific antibodies (blood proteins produced in response to and
counteracting alien substances found in the body such as viruses and
bacteria) but do not evaluate viral load (quantitative analysis), nor do
they detect the antigen (the virus or bacteria itself). The HTS-MTP system
utilizes technology that is simple in concept, but revolutionary in
scope–allowing for the detection of the virus by “measuring” the magnetic
field of micro-particles bonded to the virus in a fraction of the time and
costs of existing assays. Most testing conducted in the United States today
are screening assays (limited to the detection of antibodies), and are
largely for detection purposes only. These tests are limited because they
can only detect the presence of antibodies after a minimum infection time
of two to six weeks. The Western Blot Test, the most widely used
confirmatory test, again tests only for antibodies. The HTS-MTP system is
designed to detect the virus (not the antibodies the human body produces to
react to the virus) in a fraction of the time–72 to 96 hours. All with
near 100% accuracy.

Using
magnetism to detect to perform cost-effective and highly efficient viral
load tests.

Pictured
above (taken with an electronic microscope) are primary antibodies coated
on the base of a testing receptacle, secondary antibodies coated on a
magnetic particle, and the virus sandwiched between. This is one of the
steps of our highly innovative HTS-MTP device.

According
to S & P’s Industry Surveys, Biotechnology, December 29, 2005 revenues
for all publicly traded biotech companies (US and non-US biotech-related
concerns trading on major US stock markets) are expected to reach $50
billion in 2005. One of the largest medical products segments, in-vitro
diagnostics accounted for about 18% of total industry sales, based on
Health Industry Manufacturers Association (HIMA) estimates.

The Company
defines its markets for the first line of products as public, private
laboratories and blood banks. The world market size for manufacturing is
$25 billion and the US retail market is $37 billion. The area of greatest
growth in the in-vitro diagnostics market will be in the area of High
Throughput Screening and Viral Load Detection, two areas in which our
equipment and assays will excel.

The initial
markets for the Company’s products will be Mexico and Thailand. Over the
past 20 years management has developed key government relationships in
these countries. Both countries conduct millions of HIV and Hepatitis B
tests annually.

Upon
completion of clinical trial Latin America and Asia, the company will
initiate a 510 K Registration with the U.S. Food and Drug Administration
(F.D.A.). In 2002, HIV diagnostics tests conducted in the US was 22.15
million and in 2002, Hepatitis B diagnostic tests in the US were estimated
at 31 million.

Multi-Analytes

The Company
has filed for a third patent relating to a multi-analyte immunoassay
specifically designed for use by blood bank centers.

According
to an article in the Medical Laboratory Observer, August 2000 (latest data
available) Blood bank Centers of California, which represents 18 blood
banks that handle 80 percent of the state’s blood supply, reports total
losses of nearly $33 million in three years. To help recoup some of the
increased costs, the nonprofit Sacramento (with losses of $3 million over
the same time period) Blood Center, which operates on a $35 million budget,
has raised its price on a unit of blood twice in the past year. Although it
now charges $100 per unit, the center spends about $105 per unit to
collect, analyze and deliver the blood to users.

The center
has equipment that can detect HIV and hepatitis B before the deadly viruses
show up in normal blood tests. Use of the equipment to screen for hepatitis
B has added $8 to the cost of a unit of blood; use of the equipment
to

Biomagnetics has designed a system that can test for all eight
viruses, currently being screened for in each unit of blood, in a single
assay, thus greatly reducing the cost to analyze incoming
blood.

Nationally,
blood banks screen 14 million units of blood annually for seven types of
viruses for a total of 91 million tests per year.