Biomagnetics Announces LOI to Acquire Lanzhou New Sunshine Plastics Industry LTD Fourth Chinese Asset Targeted at $1.50 BMGP Share Price

Biomagnetics Diagnostics Corp., (PINK SHEETS:BMGP) a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis and malaria detection, and other innovative technologies, today announced the signing of a Letter of Intent (LOI) with Lanzhou New Sunshine Plastics Industry LTD. This expected acquisition is the fourth planned acquisition targeted at a share price of US $1.50 for Biomagnetics Diagnostics’ common shares.

Under the terms of the LOI, Biomagnetics will acquire all assets of New Sunshine Plastics manufacturing facility, and issue 4,220,000 shares of Biomagnetics common stock. Biomagnetics intends to use this manufacturing facility to house the equipment and technologies being acquired from Lanzhou Sanhuan New Technology Development Ltd. in order to meet the strong and growing Chinese and worldwide demand for biodegradable PVA plastic film.

Clayton Hardman, President and CEO of Biomagnetics commented, "We originally planned to build a new manufacturing plant to produce our PVA biodegradable plastic, but when this opportunity was presented, it was obvious this would be our best course of action. By acquiring New Sunshine we will be able to avoid the time and expense of new construction allowing us to begin producing this revolutionary biodegradable PVA plastic film much sooner. There is clearly a huge demand for this product and considering the large contract we already have for this plastic film, getting to the revenue production phase quicker will significantly benefit our Company and its shareholders.”

About Biomagnetics Diagnostics Corp.

Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company and an acquirer other innovative technologies. The Company is currently developing a waveguide-based advanced integrated optical biosensor through its cooperative research and development agreement with Los Alamos National Security, LLC, which will initially be used for cholera, tuberculosis and malaria diagnosis. More information on Biomagnetics Diagnostics Corp. can be seen at www.biomagneticsbmgp.com.