Press Release: Source Biomagnetics Diagnostics Corporation

Press Release - Biomagnetics (OTC BMGP) Stem Cell and Biotechnology Developments Friday March 20, 2009 6:01 AM ET

ORANGEVALE, Calif.--(BUSINESS WIRE)-March 20, 2009--Biomagnetics Diagnostics Corp. (OTC: BMGP - News) CEO and President Clayton Hardman states "BMGP welcomes the new administration's support of Stem Cell Research, Biotechnology, and Genetic Engineering. Lifting restrictions on federal funding for research on new stem cell lines will have a global impact; with proper funding and political climate BMGP can complete an impressive agenda using our international resources and domestic assets. BMGP will participate in this leap forward for science and biotechnology, and look to increase shareholder value."

BMGP has been working to place corporate debt to aid the company's development; while funding has been received efforts continue on this front. The company intends to pursue any new State and Federal financing opportunities that become available.

We have been issued two patents for our core diagnostic technology and are working with the following international technology partners to leverage our efforts within the international stem cell and genetic engineering industries. Our focus is international markets using our US based technology:

1. ACGT DNA Technologies (www.acgtcorp.com) to establish a wholly owned Chinese subsidiary and joint research lab with ACGT. Networking with several government and private facilities will provide us with a broad base of markets, quality control solutions for China's food, medical and agricultural industry, and early stage AIDS testing.
2. Austria's Christian Doppler Group (www.cdg.ac.at) with their patented viral painting technology contacted us to determine the feasibility of using our technology with the company's cancer treatment delivery system.
3. Dr. Zhiwei Chen, Director of the University of Hong Kong Li Ka Shing Faculty of Medicine, AIDS Institute (www.hku.hk/aidsinst/index.html) proposed a possible collaboration using our core diagnostic technology for "real time" antigen aids testing opposed to testing for antibodies. Click here for Dr Chen's full CV. The scientific advisory board is chaired by Dr David D Ho, Scientific Director and Chief Executive Officer, Aaron Diamond AIDS Research Center, The Rockefeller University, USA.

BMGP's stock has traded in excess of $1.00 per share over the past 18 months; analyst Victor Sula of Beacon Equity Research issued a target price of $1.42 per share last March predicated on completion of the company's core business plan. With the Administration's Stem Cell Agenda and a potential stock dividend in the Chinese operating company we believe our share valuation will be more in line with historical trading ranges (for disclosure information and a copy of the Research Report refer to www.biomagneticsbmgp.com). For more information contact Paul Hardman (paul@biomagneticsbmgp.com), Operating Officer, at 916-987-7078.

About ACGT Corporation

Founded in 1995, ACGT Corp. is a leader in DNA sequencing and synthesis related services in Canada. Its roots come from the Canadian Genetic Diseases Network system, supplying product and services to both clinical and research interests across the country.

About Christian Doppler

The Christian Doppler Research Association's (http://www.cdg.ac.at) corporate membership roster includes international corporations such as BMW and Siemens, as well as biotech companies including Intercell, (http://www.intercell.co.at) Shire PLC (www.shire.com) and Oridis Biomed (www.oridis-biomed.com).

About University of Hong Kong Li Ka Shing Faculty of Medicine, AIDS Institute

The AIDS Institute (www.hku.hk/aidsinst/index.html) was established in December 1, 2007 with a seed fund of HK$50 millions allocated by the University of Hong Kong and the Li Ka Shing Faculty of Medicine. The launch of the AIDS Institute reflects a major strategic direction of the University on biomedical research. The university aims to become a major player in addressing the global HIV/AIDS crisis in the region by preventing a larger epidemic in Asia.

About Biomagnetics Diagnostics Corporation

BMGP is an advanced medical device and biotechnology company. Our revolutionary diagnostics system tests for any viral or bacterial disease using any body fluid. Initial tests will include HIV, Hepatitis B, H-Pylori, and HPV. Our system will detect the presence of viruses/bacterium itself, not antibodies produced by the body's immune system, which may take weeks/months to appear. This allows for earlier detection and treatment, while delivering the tests at a fraction of current costs. Biomagnetics plans to have products in use in China by 2010, followed by US and European sales in 2011.

Biomagnetics (OTC BMGP) will follow the lead of established Western drug makers and biotech's like Merck & Co. Wyeth, Eli Lilly & Co., Schering-Plough, Genentech, Bristol Meyers Squibb and many others that are ramping up investments in China, India and Singapore. BMGP is exploring opportunities within the international stem cell/ genetic engineering/ biotechnology industry, and is working to establish a separate Chinese operating company with the intent to apply for listing on the Shenzhen or Hong Kong Stock Exchange.

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 performances 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.