Research and development for preparing and carrying out preclinical trials

For the first quarter (as of September 30, 2014) of its 2015 financial year Sangui BioTech International, Inc. reports revenues from product sales and royalties in the amount of USD73,470 (Q1/2013: USD26,527). This is an improvement of 73% as compared with the fourth quarter of the previous financial year (as of June 30, 2014).

Research and development expenses amounted to USD93,103 (Q1/2014: USD36,308). The increase is due to preparing and carrying out preclinical trials aimed at demonstrating the functionality of Sangui's technology with respect to various indications. The net loss attributable to shareholders of the parent company came to USD194,168 (Q1/2013: USD172.202), the cash outflow from operations during the quarter amounted to USD207,675 (Q1/2013: USD189,860).

Primarily due to the net loss for the quarter, our stockholders’ equity decreased by USD75,501 from USD7,276 at June 30, 2014 to a stockholders’ deficit of USD68,225 at September 30, 2014.

The complete quarterly report on Form 10-QSB is available at www.sec.gov and www.sanguibiotech.com.

Sangui BioTech International, Inc. ("SGBI") is a holding company the shares of which are being traded on the OTCQB venture stage marketplace for early stage and developing U.S. and international companies (OTCQB: SGBI). Companies are current in their reporting and undergo an annual verification and management certification process. Sangui shares also trade on the OTC markets of Berlin and Hamburg-Hannover stock exchanges (symbol: SBH). Its purpose is to provide financing and access to the capital markets for the enterprises of the Sangui group. SanguiBioTech GmbH is a ninety percent subsidiary of Sangui BioTech International, Inc.

Some of the statements contained in this news release discuss future expectations, contain projections of results of operation or financial condition or state other “forward-looking” information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Sangui BiotechJoachim FleingPhone: +49 (179) 7963472Fax: +49 (2302) 915191e-mail: fleing@sangui.de

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