Press Release: Source Biomagnetics Diagnostics Corporation

BioMag Enters into a Letter of Intent to Purchase an Interest in Tianjin Automatic Science & Instrument Co., a Chinese Diagnostic Manufacturer and Distributor Monday September 18, 9:01 am ET

ORANGEVALE, Calif.--(BUSINESS WIRE)--September 18, 2006--BioMag Corp. (OTC: BMGC - News) announced today that is has entered into formal negotiations to purchase an interest in Tianjin Automatic Science & Instrument Co. LTD.

Auto Science is located in Tianjin, China's third-largest city with a population of 9.5 million. Tianjin is a major comprehensive industrial base in northern China. It has over 150 lines of industry consisting primarily of electronics, automobile, metallurgy, pharmaceuticals, textiles, chemicals and mechanics. Tianjin Auto Science has been in business for over 15 years. By acquiring an interest in Tianjin Auto Science, BioMag will gain access to over 1,250 distributors, a laboratory client base of 10,000 and skilled manufacturing in the business community's most exciting markets.

Clayton Hardman, president and CEO of BioMag Corp., stated, "Acquiring an interest in a major manufacturer and distributor in China not only gives our company a significant foothold for immediate revenues, but has the capability of launching and exposing our company to an immediate network of customers for our exclusive patented technologies, upon successful completion of clinical trials. Members of the BioMag team are currently in China conducting their due diligence and we are hopeful to enter into a definitive agreement in the very near future. As evidenced by our most recent progress in Mexico and now our penetration into China, our company continues to remain committed to grow internationally and ultimately domestically."

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.