Biomagnetics Diagnostics discusses utilization of acquired Los Alamos National Security intellectual property

Biomagnetics Diagnostics Corp., (Pink Sheets:BMGP) a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis and malaria detection provides the following recap of yesterday's investor conference call, which discussed the Company’s acquisition of intellectual property rights from Los Alamos National Security and how the Company plans to utilize this intellectual property for the development of a revolutionary, handheld integrated optical biosensor capable of highly accurate and rapid HIV/AIDS, malaria, tuberculosis, and other pathogen detection and disease diagnosis.

Management believes BMGP shares are significantly undervalued considering the very low current total market capitalization of only approximately $13.5 million, the small number of total outstanding shares, and the small public float. Management believes considerable opportunities are currently available for meaningful shareholder value creation.

The Company recently announced on November 30^th that it had a finalized a “Patent License Agreement with Los Alamos National Security.” Under the agreement, Biomagnetics will have access to the Triggered Optical Biosensor and Integrated Optical Biosensor System (IBOS) technology developed at Los Alamos National Laboratory. The agreement was recently enhanced to include the intellectual property for “Quantitative Multiplex Detection of Pathogen Biomarkers,” which was recently protected through a U.S. patent application filed during October 2009.

When utilized with the Integrated Optical Biosensor System (IBOS) licensed by the Company from Los Alamos National Security, this new technology is capable of detecting multiple pathogens from a single blood sample. Importantly, Biomagnetics Diagnostics plans to integrate these technologies into a handheld blood diagnostic device that can be utilized by relatively unskilled personnel to screen potential blood donors for various pathogens at the point of collection.

A replay of the conference call will be available for approximately seven days and can be accessed by dialing (800) 642-1687 and entering pass code 45166038.

The conference call discussed the following areas:

• Background on Biomagnetics Diagnostics Corporation
• Framework of the intellectual property agreement with Los Alamos National Security and the recent enhancements
• Methodologies for protection of this intellectual property
• Development of a multiple test platform targeted at the blood bank market
• Size and operation of the markets for malaria and tuberculosis diagnosis
• Testing cost parameters outlining the extremely low cost per test inherent to the IOBS platform and the effect on probable corporate margins
• Discussion of the strength of the balance sheet, which includes relatively high cash balances and low levels of debt
• Management plans for trials in India, Kenya, and China
• Timeframe for Product Availability - Single test system currently ready for engineering and manufacture with multi-test system likely available in six to nine months.