Biomagnetics Announces Test Results of Unique PVA Film Formulation – Biodegradability, Ultra-low Gas Permeation and Extreme Flexibility

SAN FRANCISCO-- July 14, 2010 (BUSINESS WIRE)--Biomagnetics Diagnostics Corp., (PINK SHEETS: BMGP)a developer of revolutionary diagnostic systems and technology for HIV, hepatitis, tuberculosis and malaria detection, and other innovative technologies, today announced the results of recent testing of the unique PVA film formulation produced by Lanzhou Sanhuan New Technology Development Ltd. of Ganzu, China. Earlier this week, Biomagnetics announced its intent to acquire Lanzhou as the first of several planned acquisitions to be done at a $1.00 share price valuation for Biomagnetics Diagnostics’ common shares.

PVA, or polyvinal alcohol film, is an extremely flexible, high tensile strength plastic film with many unique properties. Importantly, PVA is fully biodegradable and dissolves in the natural environment and, for this reason, is considered one of the most environmentally friendly plastic films in the marketplace. Lanzhou’s unique formulation and manufacturing process produces a water soluble, low static, highly transparent, and nontoxic PVA formulation enhances ordinary PVA film.

Recent laboratory testing determined the gas barrier properties of the Lanzhou produced PVA film. Under normal atmospheric conditions, its barrier rate to oxygen is approximately 1,000 times that of current PVA mixtures and nearly 300 times that of polypropylene film. The formulation also has favorable properties relative to carbon dioxide, nitrogen, hydrogen, argon and helium gases. A gas permeation analysis relative to other plastics is listed below. This analysis is based on the SALAME indexes of ventilation (cc.20u/m2.24h.atm) of different plastics.

(HDPE – high density polyethylene; PS – polystyrene; LDPE – low density polyethylene; PET – polyethylene terephthalate)

Clayton Hardman, CEO of Biomagnetics Diagnostics commented, “The unique formulation and manufacturing process produces a version of PVA film that has many unmatched properties. If you have ever wrapped an onion in ordinary household plastic film (PVDC), you will have noticed that you can still smell the onion through the plastic wrap. When this new type of PVA film is used, its very low gas permeation qualities make smelling the onion aroma through the plastic wrap almost impossible. This makes it perfect for food, drug and hospital applications where high levels of protection are required. It is no wonder why the Chinese garlic industry has contracted with Lanzhou for up to 600,000 tons of this material as part of a large Chinese government contract.” Continued Hardman, “We are excited about the market potential with this superior product and think it makes sense to add Lanzhou and its PVA film to our company portfolio as further enhancement and diversification of our revenue stream in order to drive shareholder value.”

 

About Biomagnetics Diagnostics Corp.

Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company. The Company’s revolutionary diagnostic systems, which are based on advanced magnetics, test for any viral or bacterial disease using any body fluid. The Company's technology allows laboratories to perform far more tests in the same amount of time it takes to do a single test. The HTS-MTP platform is designed to detect the actual virus and viral load in body fluids and not just simply screen for the presence of viral antibodies. More information on Biomagnetics Diagnostics Corp. can be seen at www.BiomagneticsBMGP.com.

Contacts:
Joe Noel, 925-922-2560
Biomagnetics Diagnostics Corp.