Biomagnetics Diagnostics Corp., a developer of revolutionary diagnostic systems and other innovative technologies, today announced that Zhuhai Oil Energy Science and Technology Ltd. has significantly increased its biofuel production capacity at its Guangdong operation. Biomagnetics recently signed a letter of intent to acquire Zhuhai Oil Energy including all assets, intellectual property, plant, equipment, and a previously signed contract to supply cleaner burning biofuels to a local Guangdong province electric power plant. The acquisition of Zhuhai is the second in a series of planned highly accretive Chinese technology and product acquisitions targeted at a $1.00 share price for Biomagnetics' common shares.

The Zhuhai plant is now operational. Upgraded biofuel production capacity stands at up to 60 metric tons per hour. This higher level of production has been achieved through the recent installation of several new systems and through the expansion of other plant operations, in order to begin delivery on a previously signed contract to supply cleaner burning biofuels to a local Guangdong electric power station. The current Chinese benchmark price for diesel fuel is currently 6,460 RMB per ton.

Biomagnetics Diagnostics Corporation is an advanced medical device and biotechnology company and an acquirer of other innovative technologies based in California. The company is positioning itself to perform clinical trials in Mexico, Kenya, India and China in the fourth quarter of 2010 followed by trials in the US and Europe.

Source:www.biomagneticsbmgp.com.