Press Release: Source Biomagnetics Diagnostics Corporation

BioMag Conducts Initial Due Diligence on Chinese Diagnostic Manufacturer and Distributor Wednesday October 4, 9:01 am ET

ORANGEVALE, Calif.--(BUSINESS WIRE)--October 4, 2006--BioMag Corp. (OTC: BMGC - News) announced today that it has returned from China conducting initial due diligence on Tianjin Automatic Science & Instrument Co. LTD. ("Auto Science").

BioMag meets Auto Science

BioMag management recently met with Auto Science in Tianjin, China and conducted extensive due diligence of their facility, and witnessed first hand their diverse manufacturing capabilities.

Clayton Hardman President and CEO stated; "We are pleased with our progress in establishing a value for the purchase of a minority interest in Auto Science. We are also impressed with the remarkable growth Mr. Jing Sheng Xu (President of Auto Science) has achieved over the last 15 years. Acquiring an interest in a growth oriented manufacturing facility with distribution throughout China, and 7 other countries, solves production issues and will expose our company to an existing network of laboratory customers for our exclusive patented technologies."

About 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. Tianjin Auto Science has been in business for over 15 years, has over 1,250 distributors, and a laboratory client base of 10,000.

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.