Biomagnetics and U.S. Government laboratory continue contract negotiations

Sep 17 2009

Biomagnetics Diagnostics Corp., (PINK SHEETS:BMGP) a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis, and malaria detection, today announced the Company is in continuing contract negotiations to acquire the rights to Integrated Optical Biosensor System (IBOS) technology developed by one of the U.S. Government’s top national security research institutions. Successful conclusion will allow Biomagnetics Diagnostics to quickly enter the growing market for advanced biosensors capable of detecting and characterizing a broad range of infectious agents in a given sample, including viruses, bacteria and fungi. The Company initially plans to target the malaria and bovine tuberculosis testing markets.

“We are very excited about the rapid progress we have made in our negotiations with this U.S. Government laboratory. The team of researchers has developed an innovative approach to pathogen testing and has indicated their strong desire to move this technology into commercial production, commented Clayton Hardman, CEO of Biomagnetics Diagnostics Corp. “We believe this technology upon commercialization will not only be profitable for Biomagnetics, but will also provide an important tool to the medical, research and anti-bioterrorism communities that can potentially improve and save lives. We look forward to completing our contract negotiations in order to bringing this revolutionary technology to an eager market.”

According to the World Health Organization, some 3.2 billion people, or about half the world's population is at risk of malaria transmission in 107 countries and territories worldwide. While there are between 350 million and 500 million new cases of malaria each year, there are very few reliable and field deployable diagnostic tools available. In the case of malaria, early detection substantially improves treatability and survivability. TB (tuberculosis) is the second leading cause of death from infectious disease worldwide. Bovine TB is a growing problem through out the world with an estimated 1.3 billion cattle at risk. In the United States, where the cattle industry is valued at $60 billion annually, the use of existing diagnostic tests currently add $5.00 to $15.00 on average per head to the cattle industry's costs. Field deployable Integrated Optical Biosensor Systems (IBOS), such those Biomagnetics Diagnostics is planning to soon introduce hold the promise to significantly speed the diagnostic testing process and to meaningfully lower costs and improve lives.

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