Press Release: Source Biomagnetics Diagnostics Corporation

BioMag to Pursue Clinical Trials in China Thursday June 22, 9:02 am ET

ORANGEVALE, Calif.--(BUSINESS WIRE)--June 22, 2006--BioMag Corp. (OTC: BMGC - News) announced today that Clayton Hardman, president/CEO, has been invited to meet with the president/CEO of Haixing Bio-Tech Co. Ltd., a Chinese subsidiary of ACGT, to discuss a possible collaboration and initiate clinical trials in China.

ACGT Corp. is a privately held biomedical company located in Toronto, Ontario, Canada, with 11 years of DNA operations. Haixing Bio-Tech Co. Ltd. works with local, state and federal regulatory agencies in China. They can assist in obtaining all approvals to market Biomag's products in China as well as assist in obtaining government financing should the company decide to manufacture in China.

Clayton Hardman, president and CEO of BioMag Corp., stated, "As we continue to grow and expand our reach communicating the impact that our patented technologies can potentially bring, there is a common theme, in which the diagnostic industry is embracing this revolutionary technology. We are excited to be working with ACGT Corp. and to have the opportunity to initiate clinical trials in China, to further substantiate our technologies worldwide."

About ACGT Corp.

ACGT Corp. is a producer and supplier of custom oligonucleotides (a complete product line) and DNA sequencing services in boutique format or for large-scale diagnostic use. ACGT Corp.'s products are ordered and sent to clients in North America, China, and other parts of the world.

About BioMag Corp.

BioMag Corp., through its wholly owned subsidiary, Biospectrum Technologies Inc., a company that has designed and patented revolutionary diagnostic equipment and immunoassays, will identify market inadequacies and fill those needs with new technologies and highly specific and sensitive assays that are qualitative (yes/no) and quantitative (viral load/degree of infection), easily performed and cost-effective.

Forward-Looking Statement

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the company's actual results to differ materially from those indicated in the forward-looking statements.

Contact: Paul Hardman, (916) 987-7078
Source: BioMag Corp.