Press Release: Source Biomagnetics Diagnostics Corporation

Biomagnetics Diagnostics Announces a Corp Restructure Which Includes the Retirement of 15,308,938 Shares to the Treasury Thursday July 19, 9:01 am ET

ORANGEVALE, Calif.--(BUSINESS WIRE)--July 19, 2007--Biomagnetics Diagnostics Corp. (OTC: BMGP - News) announced today that it has completed a corporate restructure. Through the efforts of Biomagnetics' President and CEO Clayton Hardman, Biomagnetics Diagnostics Corp. just completed a restructuring of the Company involving the return of 15,308,938 million shares back to the treasury and reorganization of the Board.

Clayton Hardman states, "We're in the business of developing medical diagnostics systems and would be remiss in not diagnosing ourselves. Our analysis indicated we needed to be proactive on an ongoing basis which would facilitate not only the acquisition of additional capital investment to continue product development but would also build a solid foundation for a potential future buyout."

Clayton continued "By substantially reducing the Company's outstanding shares, reducing the float and broadening the Board to include professional's in the health care industry, we are better positioning d ourselves to attract the right type of financing and ensure our success."

About Biomagnetics Diagnostics Corporation

Biomagnetics Diagnostics Corporation, 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.

For more information please visit: www.biomagneticsbmgp.com

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.