Press Release: Source Biomagnetics Diagnostics Corporation

Biomagnetics (BMGP) Enters Chinese Biotech Market Monday September 08, 6:01 AM ET

ORANGEVALE, Calif.--(BUSINESS WIRE)- September 8, 2008--Biomagnetics Diagnostics Corp. (OTC: BMGP - News) announces today they have formed a joint venture with Dr. Hai Shiene Chen and ACGT DNA Technologies Corporation, a leader in Canada's DNA industry with extensive ties to China's medical industry, including high level government officials and private industry contacts. The company will focus on:

1. the creation of a separate Chinese Corporation (a subsidiary of BMGP) to establish a functioning presence in China. ACGT currently has a separate operating division based in China. Our goal is to use their expertise and connections to help form BMGP's Chinese division and qualify it for funding assistance from the Chinese government's high tech Incubator Program.
2. developing revenues from BMGP'S core diagnostics system as a solution for current needs within China's healthcare and food industry. The company is finalizing preliminary letters of intent for providing BMGP's testing technology for use within the Chinese food and medical industry.
3. exploring stem cell and genetic engineering application opportunities within China. Unlike the United States, China has no restrictions on stem cell research. Couple that with a highly trained and skilled labor force makes China ideal for biotechnology development.

Clayton Hardman, CEO of BMGP also announced that the company is currently reviewing a proposal from an Austrian based genetic engineering company and an independent research foundation. The proposal will grant us access to their patented cancer treatment system, viral painting technology, scientists, and laboratories to further explore BMGP's proprietary technology.

He further stated that this is the direction that BMGP intends to pursue to leverage its assets. "The international scientific community is standing on the forefront of advances and breakthroughs not seen since the telecommunications industry fifteen years ago. BMGP is committed to aggressively seeking opportunities in the stem cell and genetic engineering industries while developing our core technologies, in an effort to enhance shareholder value."

About ACGT Corporation

Founded in 1995, ACGT Corp. has become 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 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 the viruses/bacterium itself, and not for 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. BMGP will perform clinical trials in Mexico, Thailand, India and China in the first/second quarter of 2009 followed by trials in the US and Europe. Biomagnetics plans to have products in use in China by late 2009/ early 2010, followed by US and European sales sometime in 2011.

Biomagnetics (OTC BMGP) intends to follow the lead of established Western drug makers and biotech's 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.

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 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.