Press Release: Source Biomagnetics Diagnostics Corporation

BioMag Engages Lathrop Engineering to Launch its First Product Line Friday December 1, 9:01 am ET

ORANGEVALE, Calif.--(BUSINESS WIRE)--December 1, 2006--BioMag Corp. (OTC: BMGC - News) announced today that it has engaged Lathrop Engineering Inc., a Silicon Valley design engineering firm, to provide the company with a preliminary product requirements/specifications document, high level systems, preliminary functional and high level industrial design concepts including introductory product rendering and computer animation for its first product line, the HTS-MTP technology.

Clayton Hardman, President and CEO of BioMag, stated, "We've vigorously researched over 20 engineering companies globally and selected Lathrop Engineering and its Design team to develop and produce a working model of our HTS-MTP technology. They were chosen for their depth of engineering talent that includes the availability of consultants in Silicon Valley. Their successful track record in product design and proximity to our location simplified the selection process."

Mr. Hardman continued, "The design phase will be completed within 60 days demonstrating the efficacy of our technology which will enable us to build prototypes and move towards clinical trials. We are consistently looking to improve shareholder value, and so far this year we have met many milestones. I expect this progress to continue and expect to rapidly bring our products into the international and domestic markets."

About Lathrop Engineering Inc.

Since 1982, Lathrop Engineering has functioned as a product engineering and development team member serving over 300 clients. These clients have ranged from start-up Biotechs to FORTUNE 500 firms.

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.