size="2">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.

size="2">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).

size="2">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.

size="2">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.

size="2">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.

size="2">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) And Immunoassays

size="2">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.

The company has designed their first products that
will offer our customers a confirmatory test at the same price as
competitors currently charge for a screening test, which provides far less
accuracy.

size="2">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.

size="2"> Using magnetism to detect to perform cost-effective and highly
efficient viral load tests.

size="2">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.

Unique Quality Of Product
Design

size="2">Biomagnetics Diagnostics Corp. has several distinct advantages
over the competition. Foremost are its speed (allowing the lab to perform
far more tests in the same time it takes to do a single test), accuracy,
sensitivity and specificity. Other product strengths include cost,
reliability, and efficiency.

The Company’s Single Test Gives the Following
Results:

size="2">The HTS-MTP is designed to detect the virus and count the viral
load in a matter of minutes. No other screening, or confirmatory test, has
the ability to measure viral load, a critical measurement in developing
drugs and vaccines. It has the capability to screen several hundred percent
more assays, per hour, at a fraction of the cost of current technology. The
Company’s product/process will raise the benchmark for the
industry.

Target Markets

size="2">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.

size="2">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.

size="2">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.

size="2">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

size="2">The Company has filed for a third patent relating to a
multi-analyte immunoassay specifically designed for use by blood bank
centers.

size="2">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.

size="2">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

size="2">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.

size="2">Nationally, blood banks screen 14 million units of blood annually
for seven types of viruses for a total of 91 million tests per
year.