Overview
Biomagnetics Diagnostics Corp. through its wholly owned subsidiary, Biospectrum Technologies holds revolutionary patented technologies that can potentially revolutionize the diagnostics industry. The first product is the patented High Throughput Screening-Magnetic Testing Platform (HTS-MTP) diagnostic system. The Company believes that clinical trials will confirm that this system will offer the medical industry a unique method that provides confirmatory and viral load diagnostics at the same cost of screening assays. It is also expected that the HTS-MTP will detect any virus or bacteria and count the viral load in a matter of minutes and will have the capability of screening several hundred percent more assays per hour at a fraction of the cost of current technologies.

The HTS-MTP patented diagnostics system uses Magnetic Resonance (MR) sensors integrated into the company's exclusive technology providing High Throughput Screening (HTS) with the company's proprietary immunoassays incorporating super paramagnetic or ferromagnetic micro-spheres in a ternary complex. The company's initial immunoassays, under development, target the HIV and Hepatitis B viruses.

Market Dynamics Are Favorable
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. As one 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.