Press Release: Source Biomagnetics Diagnostics Corporation

BioMag Obtains Initial Financing From International Investment Capital Corporation Tuesday July 11, 9:00 am ET

ORANGEVALE, Calif.--(BUSINESS WIRE)--July 11, 2006--BioMag Corp. (OTC: BMGC - News) announced today that it has completed a Private Placement in the amount of $350,000 with International Investment Capital Corporation.

International Investment Capital Corporation ("IICC") is a privately owned company that was established in 2002 to facilitate securitizations of senior life settlement contracts. IICC has completed an initial round of financing in the amount of $350,000 at a $1.00 per share. Clayton M. Hardman, president and CEO of Biomag Corp. holds a 90% ownership position in IICC.

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.