Research and development focuses on preclinical trials

For the first half (as of December 31, 2014) of its 2015 financial year Sangui BioTech International, Inc. reports revenues from product sales and royalties in the amount of USD104,906 an increase of 74.0% over the revenues in the first half of the financial year 2014. In the second quarter (October through December 2014) revenues amounted to USD31,166 a decrease of 57.7% as compared with the most recent quarter(July through September 2014).

Research and development expenses amounted to USD134,977 (H1/2014: USD 107,234). The increase is due to the ongoing 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 USD355,928 (H1/2014: USD570,032), the cash outflow from operations during the six months amounted to USD318,740 (H1/2014: USD337,419).

As of December 31, 2014, the equity ratio was minus 33.3% (June 30, 2014: 2.8%).

In the course of the second quarter, preclinical trials at Giessen University demonstrated that a hemoglobin based product developed by SanguiBioTech is apt to improve the oxygen supply of vital organs. It is now being supposed that Sangui's hemoglobin-based artificial oxygen carriers may interrupt the self-perpetuating mechanism of septic shock, that has so far been highly resistant to treatment, and may thus ultimately reduce the high mortality rates.

Sangui BioTech International, Inc. ("SGBI") is a holding company the shares of which are being traded on the OTCQB marketplace (www.otcmarkets.com: SGBI) and the OTC markets of Berlin and Hamburg-Hannover stock exchanges. 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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