SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

     (Mark One)
[ X ]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED December 31, 2002
[   ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

                         Commission file number 0-21271

                       SANGUI BIOTECH INTERNATIONAL, INC.
             (Exact Name of Registrant as Specified in its Charter)

              COLORADO                                      84-1330732
       (State  or  other  jurisdiction  of                (I.R.S.  Employer
       incorporation  or  organization)                 Identification  No.)

                            Alfred-Herrhausen-Str. 44
                                  58455 Witten
                                     Germany

               (Address of Principal Executive Offices) (Zip Code)
     Registrant's Telephone Number, Including Area Code: 011-49-2302-915-204


 Former Address: 1508 BROOKHOLLOW DRIVE, SUITE 354, SANTA ANA, CALIFORNIA 92705

   (Former name, former address and former fiscal year, if changed since last
                                     report)

                                   -----------

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports)  and  (2)  has  been  subject  to such  filing
requirements for the past 90 days.
     Yes  [  X  ]  No  [    ]

Indicate  the  number of shares  outstanding  of each of the  issuer's  class of
common stock, as of the latest practicable date:

Title of each class of Common Stock            Outstanding at February 13, 2003
-----------------------------------------      --------------------------------
  Common  Stock,  no par  value                    40,655,363


Transitional  Small  Business  Disclosure  Format
(Check  one);

Yes  [   ]  No  [ X ]


<PAGE>



INDEX


                        SANGUI BIOTECH INTERNATIONAL, INC.

                          PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

         Consolidated Balance Sheet at December 31, 2002 (Unaudited).........3

         Consolidated Statements of Operations and Comprehensive Loss
         (Unaudited)Three and Six Months Ended December 31, 2002 and 2001....4

         Consolidated Statements of Cash Flows (Unaudited)Six Months
         Ended December 31, 2002 and 2001....................................5

         Notes to Consolidated Financial Statements (Unaudited)..............6

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations..........................................12

Item 3.  Controls and Procedures............................................15

                           PART II. OTHER INFORMATION

Item 1.  Legal Proceedings..................................................16

Item 2.  Change in Securities and Use of Proceeds...........................17

Item 3.  Defaults Upon Senior Securities....................................17

Item 4.  Submission of Matters to a Vote of Securities Holders..............17

Item 5.  Other Information..................................................17

Item 6.  Exhibits and Reports on Form 8-K...................................17



                                                                             -2-

<PAGE>


                       SANGUI BIOTECH INTERNATIONAL, INC.
                           CONSOLIDATED BALANCE SHEET


      ASSETS


                                                               December 31
                                                                  2002
                                                               (Unaudited)
                                                              ------------

Current assets
       Cash and cash equivalents                              $    245,874
       Available for sale securities                             1,911,332
       Grant receivable                                             53,193
       Prepaid expenses and other assets                           314,445
                                                              ------------
            Total current assets                                 2,524,844

Property and equipment-net                                         362,598

Patents and licenses-net                                            40,637

                                                              ------------
Total assets                                                  $  2,928,079
                                                              ============



              LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
       Accounts payable and accrued expenses                  $    134,840
                                                              ------------

Commitments and contingencies

Stockholders' equity
       Preferred stock, no par value, 5,000,000 shares
       authorized, no shares issued and outstanding                     --
       Common stock,  no par value, 50,000,000 shares
       authorized, 40,655,363 shares issued and outstanding     18,345,491
       Additional paid-in capital                                2,000,000
       Accumulated other comprehensive loss                        (72,653)
       Accumulated deficit                                     (17,479,599)
                                                              ------------

       Total stockholders' equity                                2,793,239

                                                              ------------
Total liabilities and stockholders' equity                    $  2,928,079
                                                              ============



                                                                             -3-

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
          CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

<TABLE>
<S>                                            <C>              <C>             <C>              <C>


                                                             For The                        For The
                                                        Three Months Ended             Six Months Ended
                                                           December 31,                    December 31,
                                                           (Unaudited)                     (Unaudited)
                                                  ------------    ------------    ------------    ------------
                                                      2002            2001           2002               2001
                                                  ------------    ------------    ------------    ------------


Revenues                                          $         --    $         --    $         --    $         --

Operating expenses:
Research and development                               174,623         244,204         404,329         536,333
General and administrative                             242,088         462,698         516,690         850,587
Depreciation and amortization                           45,902          35,467          91,497          69,999
Compensation expense related to stock options               --         250,000              --         500,000
Amortization of prepaid consulting fees                     --         110,000              --         220,000
                                                  ------------    ------------    ------------    ------------

Total operating expenses                               462,613       1,102,369       1,012,516       2,176,919

Other income:
Interest income                                         24,295          16,104          39,436          60,174
Other income                                            29,000          39,572          76,112          68,051
                                                  ------------    ------------    ------------    ------------
Total other income                                      53,295          55,676         115,548         128,225

Loss from continuing operations                       (409,318)     (1,046,693)       (896,968)     (2,048,694)

Loss from discontinued operations                      (91,938)       (189,368)       (138,997)       (303,523)

                                                  ------------    ------------    ------------    ------------
Net loss                                              (501,256)     (1,236,061)     (1,035,965)     (2,352,217)

Other comprehensive income (loss):
Foreign currency translation adjustments                54,593         (20,876)       (154,631)        196,460
Unrealized (loss) gain on marketable securities        (19,318)        (11,253)        (80,964)        146,469
                                                  ------------    ------------    ------------    ------------

Comprehensive loss                                $   (465,981)   $ (1,268,190)   $ (1,271,560)   $ (2,009,288)
                                                  ============    ============    ============    ============

Net loss available to common
shareholder per common share:
Net loss from continuing operations               $      (0.01)   $      (0.03)   $      (0.02)   $      (0.05)
                                                  ============    ============    ============    ============
Net loss from discontinued operations             $      (0.00)   $      (0.00)   $      (0.00)   $      (0.01)
                                                  ============    ============    ============    ============
Net loss                                          $      (0.01)   $      (0.03)   $      (0.02)   $      (0.06)
                                                  ============    ============    ============    ============

Basic and diluted weighted average
number of common shares outstanding                 40,655,363      40,514,363      40,655,363      40,514,363
                                                  ============    ============    ============    ============

</TABLE>


                                                                             -4-

<PAGE>


                       SANGUI BIOTECH INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<S>                                                                         <C>             <C>


                                                                                       For The
                                                                                   Six Months Ended
                                                                                     December 31,
                                                                                     (Unaudited)
                                                                              -----------    -----------
                                                                                 2002           2001
                                                                              -----------    -----------


CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                                                      $(1,035,965)   $(2,352,217)
Adjustments to reconcile net loss to net cash used in operating activities:
     Depreciation and amortization                                                 91,497         77,187
     Realized gains on marketable securities                                      (45,170)            --
     Realized gain on sale of assets of discontinued operations                   (16,980)            --
     Loss on impairment of assets                                                 106,927             --
     Compensation expense related to stock options                                     --        500,000
     Amortization of prepaid consulting fees                                           --        220,000
Changes in operating assets and liabilities:
     Accounts receivable                                                           84,919         22,095
     Grant receivable                                                             161,128             --
     Inventories                                                                   16,362        (32,916)
     Prepaid expenses and other assets                                             79,927         89,020
     Accounts payable and accrued expenses                                       (432,391)      (105,490)
                                                                              -----------    -----------

Net cash used in operating activities                                            (989,746)    (1,582,321)
                                                                              -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

     Increase in marketable securities                                         (1,684,600)    (4,212,845)
     Maturities of marketable securities                                        2,296,671      4,360,886
     Purchase of property and equipment                                           (53,950)       (17,132)
                                                                              -----------    -----------

Net cash provided by investing activities                                         558,121        130,909
                                                                              -----------    -----------


Effect of exchange rate changes                                                  (154,631)       196,460
                                                                              -----------    -----------

Net decrease in cash and cash equivalents                                        (586,256)    (1,254,952)

Cash and cash equivalents, beginning of period                                    832,130      2,354,584
                                                                              -----------    -----------

Cash and cash equivalents, ending of period                                   $   245,874    $ 1,099,632
                                                                              ===========    ===========


Supplemental disclosures:
     Cash paid during the period for:
     Interest                                                                 $        --    $        --
                                                                              ===========    ===========
     Income taxes                                                             $        --    $        --
                                                                              ===========    ===========



</TABLE>


     During the six months ended December 31, 2002, the Company  recorded a note
     receivable for $60,000 from the sale of inventory and equipment  related to
     its  discontinued  operations,  which is recorded in prepaid  expenses  and
     other assets.

                                                                             -5-

<PAGE>


                       SANGUI BIOTECH INTERNATIONAL, INC.
             Notes to Consolidated Financial Statements (Unaudited)


NOTE 1 - BASIS OF PRESENTATION
------------------------------

The accompanying  consolidated  financial  statements have been prepared without
audit in accordance with accounting  principles generally accepted in the United
States of America for interim financial information and with the instructions to
Form 10-QSB and Item 301 of Regulation  S-B.  Certain  information  and footnote
disclosures  normally  included in financial  statements  prepared in accordance
with accounting  principles  generally  accepted in the United States of America
have been  condensed  or omitted  pursuant  to such rules and  regulations.  The
unaudited consolidated financial statements and notes should, therefore, be read
in conjunction with the consolidated  financial  statements and notes thereto in
the  Company's  Form 10-KSB for the year ended June 30, 2002.  In the opinion of
management,  all  adjustments  (consisting of normal and recurring  adjustments)
considered necessary for a fair presentation, have been included. The results of
operations  for the three and six month periods ended  December 31, 2002 are not
necessarily  indicative  of the results that may be expected for the full fiscal
year ending June 30, 2003.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
---------------------------------------------------

Nature of Business
------------------

Sangui BioTech  International,  Inc.,  incorporated in Colorado in 1995, and its
subsidiaries  (collectively,  the "Company")  have been engaged in the research,
development, manufacture, and sales of medical products.

The operations of Sangui BioTech, Inc. ("Sangui USA"), a wholly owned subsidiary
of the  Company,  were  discontinued  during  2002 upon the sale of its in vitro
immunodiagnostics business and the subsequent merger of Sangui USA with and into
the parent company,  Sangui BioTech International,  Inc., effective December 31,
2002 (see Note 5). The merger of the two German  subsidiaries  SanguiBioTech  AG
("Sangui AG") and GlukoMediTech AG ("Gluko AG) is planned to be finalized during
the third quarter of fiscal 2003.

After  completion of this merger,  Sangui AG, will be engaged in the development
of artificial  oxygen carriers  (external  applications  of  haemoglobin,  blood
substitute and blood additives) as well as in the development of glucose implant
sensors.

Sangui  Singapore,  incorporated in Singapore in 1999, was a regional office for
the Company that carried out research and  development  projects in  conjunction
with Sangui AG and Gluko AG. The Company  decided to discontinue  the operations
of Sangui Singapore in August 2002 (see Note 5). The Singapore office was closed
effective December 31, 2002.

Consolidation
-------------

The  consolidated  financial  statements  include the accounts of Sangui BioTech
International,   Inc.  and  its  wholly  owned  subsidiaries.   All  significant
intercompany  accounts and transactions  have been eliminated in  consolidation.
Certain  amounts in the three and six months  ended  December 31, 2001 have been
reclassified  to conform to the three and six months  ended  December  31,  2002
presentation.

Use of Estimates
----------------

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities  and disclosure of contingent  assets and liabilities at the date of
the  financial  statements  and the  reported  amounts of revenues  and expenses
during the respective  reporting period.  Actual results could differ from those

                                                                             -6-



<PAGE>



estimates.  Significant  estimates  made by management  are,  among others,  the
realization  of  receivables,  long-lived  assets,  and  valuation  allowance on
deferred tax assets.

Risk and Uncertainties
----------------------

The Company's line of future pharmaceutical products (artificial oxygen carriers
or blood  substitute  and  additives) and in vivo  biosensors  (glucose  implant
sensor) being developed by Sangui AG and Gluko AG, are deemed as medical devices
or  biologics,  and as such  are  governed  by the  Federal  Food  and  Drug and
Cosmetics  Act and by the  regulations  of state  agencies  and various  foreign
government   agencies.   The  pharmaceutical  and  biosensor   products,   under
development  in  Germany,   will  be  subject  to  more   stringent   regulatory
requirements,  because they are in vivo products for humans. The Company and its
subsidiaries have no experience in obtaining regulatory clearance on these types
of  products.  Therefore,  the Company will be subject to the risks of delays in
obtaining or failing to obtain regulatory clearance.

The Company's  management  believes,  based on its current  operating  plan, its
current cash and highly liquid marketable securities totaling approximately $2.2
million at December 31, 2002,  are  sufficient to fund the Company's  operations
and working capital  requirements at least through  December 31, 2003.  However,
the Company will need substantial additional funding to fulfil its business plan
and the Company intends to explore financing sources for its future  development
activities. No assurance can be given that these efforts will be successful.

Foreign Currency Translation
----------------------------

Assets and liabilities of the Company's  foreign  operations are translated into
U.S.  dollars  at  period-end  exchange  rates.  Net  exchange  gains or  losses
resulting from such  translation  are excluded from net loss but are included in
comprehensive   income  (loss)  and  accumulated  in  a  separate  component  of
stockholders'  equity.  Income and expenses are  translated at weighted  average
exchange rates for the period.

Cash and Cash Equivalents
-------------------------

The Company maintains its cash in uninsured  accounts and not in bank depository
accounts  insured by the  Federal  Deposit  Insurance  Corporation  (FDIC).  The
Company has not  experienced any losses in these  uninsured  accounts.  Cash and
cash equivalents include time deposits for which the Company has no requirements
for compensating  balances.  The Company also maintains bank accounts in Germany
and Singapore.

Marketable  Securities
----------------------

Marketable securities are classified as available-for-sale. Unrealized gains and
losses are excluded  from net loss and are  reported as a separate  component of
other comprehensive loss in stockholders' equity.  Realized gains and losses are
included in other income and are determined based on the specific identification
of the securities bought and sold (see Note 3).

Revenue Recognition
-------------------

Revenues from product sales are recognized at the time of shipment.

Research and Development
------------------------

Research and  development  costs are charged to operations as they are incurred.
Legal fees and other direct costs incurred in obtaining and  protecting  patents
are expensed as incurred.

Stock Compensation
------------------

The Company accounts for stock-based  compensation issued to employees using the
intrinsic  value based  method as  prescribed  by  Accounting  Principles  Board
Opinion No. 25,  "Accounting  for Stock  Issued to  Employees"  ("APB  25"),  as
amended. Under the intrinsic value based method,  compensation is the excess, if
any, of the fair value of the stock at the grant date or other  measurement date
over the amount an employee must pay to acquire the stock. Compensation, if any,
is recognized over the applicable  service period,  which is usually the vesting

                                                                             -7-

<PAGE>

period. The Financial  Accounting  Standards Board ("FASB") has issued Statement
of Financial  Accounting Standards ("SFAS") No. 123, "Accounting for Stock-Based
Compensation." This standard, if fully adopted, changes the method of accounting
for all  stock-based  compensation  to the fair value  based  method.  For stock
options and  warrants,  fair value is determined  using an option  pricing model
that takes into account the stock price at the grant date,  the exercise  price,
the  expected  life of the option or warrant  and the annual  rate of  quarterly
dividends.  Compensation  expense,  if any, is  recognized  over the  applicable
service period, which is usually the vesting period.

The  adoption of the  accounting  methodology  of SFAS No. 123 for  employees is
optional  and the Company has elected to  continue  accounting  for  stock-based
compensation  issued to employees using APB 25; however,  pro forma disclosures,
as if the Company adopted the cost recognition  requirements under SFAS No. 123,
are required to be presented (see Note 4).

Basic and Diluted Earnings (Loss) Per Common Share
--------------------------------------------------

Basic earnings (loss) per common share is computed based on the weighted average
number of shares  outstanding for the period.  Diluted earnings (loss) per share
is  computed  by  dividing  net income  (loss) by the  weighted  average  shares
outstanding  assuming  all  dilutive  potential  common  shares  were issued (at
December 31, 2002, there were no potential common shares).

Comprehensive Income (Loss)
---------------------------

Total  comprehensive  income (loss)  represents the net change in  stockholders'
equity during a period from sources other than  transactions  with  stockholders
and as such,  includes net earnings.  For the Company,  the  components of other
comprehensive  income (loss) are the changes in the cumulative  foreign currency
translation  adjustments  and  unrealized  gains  (losses) on securities and are
recorded as components of stockholders' equity.

Segments of an Enterprise and Related Information
-------------------------------------------------

The Company applies SFAS No. 131,  "Disclosures  about Segments of an Enterprise
and Related Information".  SFAS No. 131 establishes standards for the way public
companies  report  information  about segments of their business in their annual
financial statements and requires them to report selected segment information in
their quarterly  reports issued to  shareholders.  It also requires  entity-wide
disclosures  about the products and  services an entity  provides,  the material
countries in which it holds assets and reports  revenues and its major customers
(see Note 7).

New Accounting Pronouncements
-----------------------------

In August 2001, the FASB issued SFAS No. 144,  "Accounting for the Impairment or
Disposal of Long-Lived Assets".  SFAS No. 144 addresses financial accounting and
reporting for the impairment of long-lived  assets and for long-lived  assets to
be disposed  of. The  provisions  of SFAS No. 144 are  effective  for  financial
statements  issued for fiscal years  beginning  after  December  15,  2001,  and
interim periods within these fiscal years, with early adoption  encouraged.  The
adoption  of SFAS  No.  144 did not  have a  material  effect  on the  Company's
financial statements.

In April 2002, the FASB issued SFAS No. 145,  "Rescission of FASB No. 4, 44, and
64, Amendment of FASB Statement No. 13, and Technical  Corrections",  to update,
clarify  and  simplify  existing  accounting  pronouncements.  SFAS No. 4, which
required all gains and losses from debt  extinguishment to be aggregated and, if
material,  classified as an extraordinary  item, net of related tax effect,  was
rescinded.  Consequently,  SFAS No. 64, which  amended SFAS No. 4, was rescinded
because it was no longer necessary.  The Company does not expect SFAS No. 145 to
have a material effect on its financial statements.

In June 2002,  the FASB issued SFAS No. 146,  "Accounting  for Costs  Associated
with Exit or Disposal  Activities".  SFAS 146 addresses accounting and reporting
for costs  associated  with exit or disposal  activities and nullifies  Emerging
Issues Task Force Issue No. 94-3,  "Liability  Recognition for Certain  Employee
Termination  Benefits  and Other  Costs to Exit an Activity  (Including  Certain
Costs Incurred in a Restructuring)".  SFAS No. 146 requires that a liability for
a cost associated  with an exit or disposal  activity be recognized and measured
initially  at fair  value  when the  liability  is  incurred.  SFAS  No.  146 is
effective for exit or disposal  activities that are initiated after December 31,
2002, with early  application  encouraged.  The adoption of SFAS No. 146 did not
have a material effect on the Company's financial statements.

                                                                             -8-

<PAGE>

NOTE 3 - AVAILABLE FOR SALE SECURITIES
--------------------------------------

Available for sale securities consist of the following at December 31, 2002:



                                         Cost      Fair market   Unrealized
                                                     value       Gain (Loss)

Mutual funds                          $  215,653   $   135,385    $(80,268)
Corporate bonds due within one year      783,477       785,064       1,587
Corporate bonds due within five years    993,166       990,883      (2,283)

                                      ----------   -----------    ---------

                                      $1,992,296   $ 1,911,332    $(80,964)
                                      ==========   ===========    =========



NOTE 4 - COMPENSATION EXPENSE RELATED TO STOCK OPTIONS
------------------------------------------------------

Per APB No.  25,  "Accounting  for  Stock  Issued  to  Employees",  the  Company
recognized  compensation  expense for previously issued options in the amount of
$250,000 and $500,000 in the accompanying statements of operations for the three
and six months ended December 31, 2001,  respectively.  Effective June 30, 2002,
these  options were  cancelled by mutual  agreement  between the Company and the
option holder. As a result, no compensation expense related to stock options was
recorded for the three and six months ended December 31, 2002.

NOTE 5  - DISCONTINUED OPERATIONS
---------------------------------

Sangui USA manufactured in vitro immunodiagnostic blood test kits that have been
primarily  sold  in the  United  States  and  Europe.  The  Company  decided  to
discontinue the in vitro immunodiagnostics  business in August 2002, sold Sangui
USA's  inventory and property and  equipment to an unrelated  party for $60,000,
and  closed  the  facility.  The sale  resulted  in a gain of  $16,980  which is
included  as part of  loss  from  discontinued  operations  in the  accompanying
statements  of  operations  for the six months ended  December 31, 2002. In July
2002,  the  Company  received   $100,000  as  part  of  an  agreement  to  cease
manufacturing  and selling  certain  blood test kits which is included in a loss
from  discontinued  operations in the accompanying  statements of operations for
the six months ended December 31, 2002. The Company  decided to discontinue  the
operations  of Sangui  Singapore in August 2002,  took an  impairment  charge on
property and equipment of $106,927,  and closed the facility  effective December
31, 2002.

Components of amounts  reflected in the accompanying  income  statements for the
three months ended December 31, 2002 and 2001 are presented below:

<TABLE>
<S>                    <C>                <C>           <C>                <C>            <C>                <C>



                                         2002                                                      2001
                                         ----                                                      ----
                            Sangui           Sangui                            Sangui          Sangui
                             USA            Singapore          Total             USA          Singapore          Total
                         -------------    ------------    --------------    ------------    ------------    --------------

Sales                    $                $               $                 $  141,012      $               $    141,012
                                  -                -                 -                               -
Cost of sales                     -                -                 -          89,218               -            89,218
Operating expenses           12,504           82,797            95,301         183,854          57,308           241,162
                         -------------    ------------    --------------    ------------    ------------    --------------

Loss from operations        (12,504)         (82,797)          (95,301)       (132,060)        (57,308)         (189,368)
Other income                      -            3,363             3,363               -               -                 -

                         -------------    ------------    --------------    ------------    ------------    --------------
Loss from
 discontinued
 operations              $  (12,504)      $  (79,434)     $    (91,938)     $ (132,060)     $  (57,308)     $   (189,368)
                         =============    ============    ==============    ============    ============    ==============


</TABLE>
                                                                             -9-

<PAGE>


Components of amounts  reflected in the accompanying  income  statements for the
six months ended December 31, 2002 and 2001 are presented below:

<TABLE>
<S>                    <C>               <C>             <C>               <C>           <C>              <C>

                                             2002                                              2001
                                             ----                                              ----
                            Sangui          Sangui                             Sangui         Sangui
                             USA           Singapore          Total             USA          Singapore          Total
                         -------------    ------------    --------------    ------------    ------------    --------------

Sales                    $   138,542      $               $    138,542      $  242,253      $               $    242,253
                                                   -                                                -
Cost of sales                 94,747               -            94,747         170,419               -           170,419
Operating expenses            88,564         107,644           196,208         248,768         126,589           375,357
                         -------------    ------------    --------------    ------------    ------------    --------------

Loss from operations         (44,769)       (107,644)         (152,413)       (176,934)       (126,589)         (303,523)
Other income                 116,980           3,363           120,343               -               -                 -
Impairment of assets               -        (106,927)         (106,927)              -               -                 -
                         -------------    ------------    --------------    ------------    ------------    --------------
Income (loss) from
 discontinued
 operations              $    72,211      $ (211,208)     $   (138,997)     $ (176,934)     $ (126,589)     $   (303,523)
                         =============    ============    ==============    ============    ============    ==============

</TABLE>


NOTE  6 - LITIGATION RELATED TO THE OPERATING BUSINESS
------------------------------------------------------

The Company may, from time to time, be involved in various litigation  resulting
from the ordinary course of operating its business.  Management is currently not
able to predict the outcome of any such cases. However, management believes that
the amount of ultimate liability,  if any, with respect to such actions will not
have a  material  effect on the  Company's  financial  position  and  results of
operations.

                                                                            -10-



<PAGE>



NOTE 7 - BUSINESS SEGMENTS
--------------------------

The Company reports it business segments based on geographic regions,  which are
as follows:

<TABLE>
<S>                               <C>              <C>                <C>               <C>

                                    Three months ended December 31,      Six months ended December 31,
                                    -------------------------------      -----------------------------
                                          2002           2001                 2002           2001
                                          ----           ----                 ----           ----

Net sales:
----------
Sangui USA                           $        --     $   141,012         $    138,542   $    242,253
Sangui BioTech International, Inc.            --             --                   --             --
Sangui BioTech AG                             --             --                   --             --
GlukoMediTech, AG                             --             --                   --             --
Sangui BioTech PTE Ltd, Singapore             --             --                   --             --
                                     ------------------------------      -----------------------------
                                     $        --     $   141,012         $    138,542   $    242,253
                                     ==============================      =============================


Net income (loss):
------------------
Sangui USA                           $   (12,504)    $  (132,060)        $     72,211   $   (176,934)
Sangui BioTech International, Inc.       (20,304)       (527,119)            (109,626)    (1,122,072)
Sangui BioTech AG                       (262,982)       (308,193)            (467,038)      (514,981)
GlukoMediTech, AG                       (126,032)       (211,381)            (320,304)      (411,641)
Sangui BioTech PTE Ltd, Singapore        (79,434)        (57,308)            (211,208)      (126,589)
                                     ------------------------------      -----------------------------
                                     $  (501,256)    $(1,236,061)        $ (1,035,965)  $ (2,352,217)
                                     ==============================      =============================


Depreciation and amortization
-----------------------------
Sangui USA                           $        --     $     3,595         $        --    $      7,188
Sangui BioTech International, Inc.            --              --                  --             --
Sangui BioTech AG                         33,606          25,421               67,097         50,107
GlukoMediTech, AG                         12,296          10,046               24,400         19,892
Sangui BioTech PTE Ltd, Singapore             --              --                  --             --
                                     ------------------------------      -----------------------------
                                     $    45,902     $    39,062         $     91,497   $     77,187
                                     ==============================      =============================
</TABLE>


Identifiable assets
-------------------
Sangui USA                           $        --
Sangui BioTech International, Inc.       212,943
Sangui BioTech AG                        780,148
GlukoMediTech,AG                       1,934,988
Sangui BioTech PTE Ltd, Singapore             --
                                     -------------
                                     $ 2,928,079
                                     =============


                                                                            -11-


<PAGE>


ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
--------------------------------------------------------------------------------
OF OPERATIONS
-------------

Forward-looking Statements
--------------------------

The following  discussion  of our financial  condition and results of operations
should be read in conjunction with the consolidated financial statements and the
related notes thereto included  elsewhere in this quarterly report.  Some of the
information  in  this  quarterly  report  contains  forward-looking  statements,
including statements related to anticipated operating results,  margins, growth,
financial resources,  capital requirements,  adequacy of the Company's financial
resources,  trends in spending on research and  development,  the development of
new markets, the development,  regulatory approval,  manufacture,  distribution,
and  commercial  acceptance  of new  products,  and future  product  development
efforts.  Investors are cautioned that forward-looking  statements involve risks
and  uncertainties,  which may affect our business and prospects,  including but
not limited  to, the  Company's  expected  need for  additional  funding and the
uncertainty of receiving the additional funding,  changes in economic and market
conditions,  acceptance  of our  products by the health  care and  reimbursement
communities,   new   development   of  competitive   products  and   treatments,
administrative and regulatory approval and related  considerations,  health care
legislation and regulation,  and other factors discussed in our filings with the
Securities and Exchange Commission.

GENERAL
-------

The  Company is  primarily  involved in the  development  of  artificial  oxygen
carriers and glucose sensors.

The Company's  development projects are primarily in the preliminary stages. The
Company  is  diligently   developing   several   applications  for  its  primary
development projects, but does not anticipate beginning any government protocols
or clinical trials in the near term.

In 2002, the Board of Directors  analyzed progress and outlook for all units and
current projects within the group and assessed the key cost factors. In order to
improve the  probability of successful  market entry for its key projects in the
haemoglobin area, the Board initiated a comprehensive  refocusing  program aimed
at cost reduction and fast market entry.

Group Structure
---------------

In the pursuit of this program,  the Company has begun to reduce the  complexity
of the group structure by closing the Singapore  subsidiary,  merging Sangui USA
with the parent  company  Sangui  BioTech  International,  Inc. and planning the
merger of the two German  subsidiaries,  GlukoMediTech AG and  SanguiBioTech AG,
into  SanguiBioTech  AG. The Company  should  benefit from the clearer  focus of
management  attention  and the  decrease in  consolidation  efforts.  Management
expects to save  approximately  50% of the group's total accounting and auditing
expenses, which, in fiscal 2002, amounted to more than $180,000.

Sangui Singapore's operations used to encompass mainly a test laboratory serving
the  purpose  of  carrying  out  experiments  on  animals.  The  closing  of the
operations in Singapore is expected to result in annual savings of approximately
$200,000 as the net loss of Sangui  BioTech PTE Ltd.  was  $220,156 and $183,068
for the years ended June 30, 2002 and 2001, respectively.

After having sold the immunodiagnostic  test kit business to Axis/Shield ASA and
Biomerica,  Inc. in the first quarter of fiscal year 2003,  Sangui USA no longer
had any significant  operations  within the group.  Sangui USA,  therefore,  was
merged with the parent  company at the end of the second  quarter of fiscal year
2003. In accordance with the Company's goals and plan of  restructuring,  Sangui
Singapore  and  Sangui  USA are  presented  as  discontinued  operations  in the
accompanying consolidated financial statements.

In the course of the merger of the two German  subsidiaries  it was  resolved to
reduce further expenditures in the blood substitute,  blood additive and glucose
sensor  projects  to the  amount  necessary  to find  financing,  industrial  or
distribution  partners for further  development  and  marketing of the resulting
products.

                                                                            -12-

<PAGE>


Cost Savings
------------

As will be  discussed  below,  the  ongoing  cost-cutting  exercise  has already
contributed to reducing the operating  expenditures  of the Company.  Management
has  begun to  implement  more  efficient  processes  and  shift to  alternative
suppliers and materials offering better price-performance ratios. Staff has been
shifted to work on the most  promising  projects,  while  expenses for long-term
development  projects have been reduced.  Long-term projects are currently being
continued by in-house scientists and technicians, while costly external projects
and orders have been terminated or delayed.  In the course of this process,  the
number of employees was reduced by 40% to 18 fulltime  employees at December 31,
2002 from 30 employees at June 30, 2002.  Contracts  with 8 employees are due to
expire during the third quarter of fiscal 2003.

On the other hand,  consulting and legal fees related to the restructuring  have
resulted in  non-recurring  expenses of  approximately $130,000 in the first six
months of fiscal 2003.  Management believes,  that additional  opportunities for
significant cost savings will be identified.  Special attention is being paid to
the pending lawsuits (see below). Management has requested its attorneys to take
the steps necessary to dismiss the liability claim.

In total, management has been able to reduce the Company's operating expenses by
55% to approximately $1 million in the first six months of fiscal 2003, compared
to approximately $2.2 million in the respective period of last fiscal year. This
is partially due to the elimination of  amortization  expense related to prepaid
consulting fees which were written off at June 30, 2002, and to the cancellation
of stock options at the end of fiscal 2002.  Research and  development  expenses
and  general  and  administrative  expenses  have been  reduced  by 25% and 39%,
respectively,  in the  first  six  months  of  fiscal  2003 as  compared  to the
respective  period of last fiscal year. This effort is also reflected in the net
cash used in  operating  activities  which  decreased  37% to  approximately  $1
million from last year's  approximately  $1.6  million.  Management,  therefore,
assumes that the current  planning is realistic and that the Company's funds and
liquidity are  sufficient to finance its  activities at least through the period
ending December 31, 2003.


FINANCIAL POSITION
------------------

The Company's current assets decreased  approximately $1.5 million, or 38%, from
June 30, 2002 to  approximately  $2.5 million at December 31, 2002. The decrease
is  primarily  attributable  to a  decrease  in cash  and  cash  equivalents  of
approximately   $586,000,  a  decrease  in  available  for  sale  securities  of
approximately   $648,000,  a  decrease  in  grant  receivable  of  approximately
$161,000,  a decrease in accounts  receivable of  approximately  $85,000,  and a
decrease in inventories of approximately  $52,000. The decrease in cash and cash
equivalents and available for sale securities results primarily from funding the
current year's operations of the Company with little or no revenues in the three
and six month period ended December 31, 2002.

The Company's net property and equipment decreased  approximately  $147,000,  or
29%,  from June 30, 2002 to  approximately  $363,000 at December 31,  2002.  The
decrease is primarily  attributable to the Company's  write-off of approximately
$107,000 of leasehold improvements at Sangui Singapore.

The Company funded its operations  primarily through its existing cash reserves.
The Company's  stockholders'  equity decreased  approximately $1.3 million.  The
primary  decrease  is  caused  by the  Company's  current  period  net  loss  of
approximately  $1 million,  and an increase in accumulated  other  comprehensive
loss of approximately  $236,000 due to foreign currency translation  adjustments
and unrealized losses on marketable securities.

                                                                            -13-

<PAGE>

RESULTS OF OPERATIONS
---------------------

Three Months Ended December 31, 2002 and 2001:

Sangui AG
---------
RESEARCH AND  DEVELOPMENT.  Research and development  expenses  decreased 36% to
approximately $85,000 in 2002 from approximately  $132,000 in 2001. The decrease
is due to the refocusing of research and development activities.

GENERAL AND ADMINISTRATIVE. General and administrative expenses decreased 12% to
approximately  $170,000  in 2002  from  approximately  $193,000  in  2001.  This
decrease is mainly attributed to the ongoing refocusing program.

Gluko AG
--------
RESEARCH AND  DEVELOPMENT.  Research and development  expenses  decreased 20% to
approximately $90,000 in 2002 from approximately  $112,000 in 2001. The decrease
is due to the refocusing of research and development activities.

GENERAL AND ADMINISTRATIVE. General and administrative expenses decreased 49% to
approximately  $50,000 in 2002 from approximately $98,000 in 2001. This decrease
is mainly attributed to the ongoing refocusing program.

Sangui BioTech International, Inc.
----------------------------------
GENERAL AND ADMINISTRATIVE. General and administrative expenses decreased 87% to
approximately $22,000 in 2002 from approximately $172,000 in 2001. This decrease
is related to legal costs incurred in 2001 by the Company in a lawsuit against a
former  director of the Company and a decrease in  professional  and  consulting
fees.

COMPENSATION  EXPENSE RELATED TO STOCK OPTIONS.  Compensation expense related to
stock options was $250,000 in 2001,  which  represented the  amortization of the
fair value of stock  options  previously  issued to the chairman of the Company.
Effective  June  30,  2002,  these  options  were  cancelled  and  there  is  no
compensation expense related to stock options in the three months ended December
31, 2002.

AMORTIZATION OF PREPAID CONSULTING FEES. Amortization of prepaid consulting fees
was  $110,000 in 2001.  At June 30,  2002,  management  determined  that no more
benefit  would be  received  in  relation  to the  prepaid  consulting  fees and
accordingly the unamortized  balance was written off in fiscal 2002. Thus, there
was no amortization in the three months ended December 31, 2002.

Consolidated
------------
NET  LOSS.  As a result  of the above  factors  and the loss  from  discontinued
operations (see Note 5), the Company's  consolidated net loss was  approximately
$501,000,  or $0.01 per common share, in 2002,  compared to  approximately  $1.2
million, or $0.03 per common share, in 2001.

RESULTS OF OPERATIONS
---------------------

Six Months Ended December 31, 2002 and 2001:
--------------------------------------------

Sangui AG
---------
RESEARCH AND  DEVELOPMENT.  Research and development  expenses  decreased 31% to
approximately $170,000 in 2002 from approximately $247,000 in 2001. The decrease
is due to the refocusing of research and development activities.

GENERAL AND ADMINISTRATIVE.  General and administrative expenses decreased 4% to
approximately  $279,000  in 2002  from  approximately  $291,000  in  2001.  This
decrease is mainly attributed to the ongoing refocusing program.

Gluko AG
--------
RESEARCH AND  DEVELOPMENT.  Research and development  expenses  decreased 19% to
approximately $235,000 in 2002 from approximately $289,000 in 2001. The decrease
is due to the refocusing of research and development activities.

GENERAL AND ADMINISTRATIVE. General and administrative expenses decreased 13% to
approximately  $122,000  in 2002  from  approximately  $141,000  in  2001.  This
decrease is mainly attributed to the ongoing refocusing program.

                                                                            -14-

<PAGE>

Sangui BioTech International, Inc.
----------------------------------
GENERAL AND ADMINISTRATIVE. General and administrative expenses decreased 72% to
approximately  $115,000  in 2002  from  approximately  $416,000  in  2001.  This
decrease is related to legal costs  incurred in 2001 by the Company in a lawsuit
against a former  director of the Company  and a decrease  in  professional  and
consulting fees.

COMPENSATION  EXPENSE RELATED TO STOCK OPTIONS.  Compensation expense related to
stock options was $500,000 in 2001,  which  represented the  amortization of the
fair value of stock  options  previously  issued to the chairman of the Company.
Effective  June  30,  2002,  these  options  were  cancelled  and  there  is  no
compensation  expense  related to stock options in the six months ended December
31, 2002.

AMORTIZATION OF PREPAID CONSULTING FEES. Amortization of prepaid consulting fees
was  $220,000 in 2001.  At June 30,  2002,  management  determined  that no more
benefit  would be  received  in  relation  to the  prepaid  consulting  fees and
accordingly the unamortized  balance was written off in fiscal 2002. Thus, there
was no amortization in the six months ended December 31, 2002.

Consolidated
------------
NET  LOSS.  As a result  of the above  factors  and the loss  from  discontinued
operations (see Note 5), the Company's  consolidated net loss was  approximately
$1 million,  or $0.02 per common share, in 2002,  compared to approximately $2.4
million, or $0.05 per common share, in 2001.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

For the  six  months  ended  December  31,  2002,  net  cash  used in  operating
activities decreased to approximately $1 million from approximately $1.6 million
in the  corresponding  period in 2001,  primarily  related to a decrease  in the
Company's consolidated net loss as a result of the ongoing refocusing program.

For the six months  ended  December  31,  2002,  net cash  provided by investing
activities  increased to approximately  $558,000 from approximately  $131,000 in
the corresponding  period in 2001. The principal  increase in cash is due to the
maturity of  marketable  securities  and  decrease in  purchases  of  marketable
securities.

Working capital was approximately  $2.4 million at December 31, 2002, a decrease
of approximately  $1.1 million from June 30, 2002 due primarily to the Company's
net loss for the six month period. A substantial  portion of the Company's total
assets consists of cash and highly liquid  marketable  securities  classified as
available  for sale  securities.  Marketable  securities  at  December  31, 2002
include  approximately  $135,000 of  investments  in money market  mutual funds,
which are  convertible  to cash daily.  The highly liquid nature of these assets
provides the Company with  flexibility  in financing  and managing its business.
For the  six-months  ended  December 31, 2002,  realized  gains on the Company's
marketable securities were approximately $45,000, and unrealized net losses were
approximately $81,000.

At December 31, 2002, the Company had cash and liquid  marketable  securities of
approximately $2.2 million. The Company believes that its available cash will be
sufficient  to satisfy  its  requirements  at least  through  the period  ending
December 31, 2003. However, the Company will need substantial additional funding
to fulfil its business plan and the Company intends to explore financing sources
for its future  development  activities.  No  assurance  can be given that these
efforts will be successful.

ITEM 3 - CONTROLS AND PROCEDURES
--------------------------------

As of February 3, 2003, an evaluation was performed  under the  supervision  and
with the participation of the Company's  management,  including the CEO/CFO,  of
the  effectiveness  of the  design and  operation  of the  Company's  disclosure
controls and procedures.  Based on that  evaluation,  the Company's  management,
including  CEO/CFO,   concluded  that  the  Company's  disclosure  controls  and
procedures were effective as of February 3, 2003. There have been no significant
changes  in the  Company's  internal  controls  or in other  factors  that could
significantly affect internal controls subsequent to February 3, 2003.

                                                                            -15-

<PAGE>

ITEM 4 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
-------------------------------------------------------------------

The  Company  has no  derivative  financial  instruments.  Exposure  to  foreign
currency exchange rates is limited as the Company has no operating  business nor
staff outside Germany since December 31, 2002.


PART II - OTHER INFORMATION
---------------------------

ITEM 1 - LEGAL PROCEEDINGS
--------------------------

On July 26,  2001,  the Company  filed a lawsuit in the United  States  District
Court for the  District of Colorado  against  Helmut  Kappes,  a director of the
Company.  In the  lawsuit,  the Company  alleges  that Mr.  Kappes is engaged in
conduct  related to the Company's  affairs that is  fraudulent,  dishonest and a
gross abuse of his  authority or  discretion  as a director and that his removal
from the  Company's  Board of  Directors  would be in the best  interest  of the
Company.  Among other  things,  the Company  alleges that Mr.  Kappes caused the
Company  to  enter  into a  contract  with  Axel  Kleinkorres  without  adequate
disclosure of Mr. Kappes'  conflicts of interest and that the remuneration  paid
to Mr.  Kleinkorres  was excessive.  The Company also alleges that Mr. Kappes is
engaged in an improper  exchange offer campaign  involving the Company's shares.
The Court issued a Temporary  Restraining  Order  suspending Mr. Kappes from the
Board of Directors of the Company and  restraining  Mr. Kappes from pursuing the
exchange offer.  The Temporary  Restraining  Order has expired.  The Company has
filed a Motion for  Preliminary  Injunction.  The  Company  seeks the  permanent
removal of Mr.  Kappes from the  Company's  Board of  Directors,  an  injunction
against Mr. Kappes and his affiliates from  exchanging the Company's  shares for
shares of an entity in which Mr. Kappes has a financial  interest,  compensatory
damages in an amount to be  determined  and costs of the action.  Mr. Kappes has
filed an answer denying the Company's claims. In October 2002, the Court granted
the motion of counsel  to Mr.  Kappes to  withdraw  from  representation  of Mr.
Kappes.  Upon  consideration  by the Board of  Directors  of the legal  costs to
prosecute  the claims  against Mr.  Kappas and the  likelihood  of being able to
collect on any obtained  judgment,  the company has  requested  its attorneys to
take the steps necessary to dismiss the liability claim .

In September 2002, Mr. Kappes' wife, Kerstin Kappes, and Petra Schwabe-Kutscher,
the  wife of Axel  Kutscher,  who is a former  director  of the  Company  and an
associate of Mr. Kappes, commenced an action in the United States District Court
for the District of Colorado  against the Company and its  attorneys for alleged
wrongful  refusal  to permit  Mrs.  Kappes and Mrs.  Kutscher  to  transfer  the
Company's stock. In November 2002, the Company finalized a settlement  agreement
with Mr. and Mrs. Kappes and Mrs. Kutscher  providing for the permitted transfer
by them of their Company stock under certain  conditions.  No money will be paid
by the Company in  connection  with the  settlement.  The legal  action has been
dismissed.

On August 10, 2002,  Sieglinde  Borchert,  a former director of Sangui BioTechAG
and Gluko  Meditech  AG,  filed a lawsuit  against  the two German  Corporations
alleging that she is still member of the Board of Management of these Companies.
The parties agreed on a settlement in January,  2003, which was submitted to the
Court for  approval.  The  settlement  did not  materially  affect the financial
position  or results  of  operations  of the  Company  for the six months  ended
December 31, 2002.

In December 2000, Axis/Shields ASA, a Norway corporation (Axis), filed a lawsuit
against Sangui USA alleging that Sangui USA's Carbohydrate-Deficient Transferrin
("CDT") test kit, which is used to detect chronic alcohol abuse,  constituted an
infringement  of patent  rights owned by Axis.  In March 2001, a settlement  was
reached and Sangui USA agreed to cease manufacture and sale of the CDT test kit.
Sangui USA subsequently designed a new test kit, which was then manufactured and
sold. In December 2001,  Axis filed another  lawsuit in the U.S.  District Court
for the Central District of California  against Sangui USA alleging that the new
test kit also  infringed  on Axis'  patent  rights.  Sangui  USA filed an answer
denying the claims of Axis and  counterclaimed  against  Axis for a  declaratory
judgment  of  invalidity  of the  patent of Axis and for  antitrust  violations.
Because of the  substantial  funds required to defend itself against the lawsuit
filed by Axis,  despite of a high  probability of not being found infringing the
patent held by Axis,  the Company  decided to offer its CDT business for sale to
Axis. In July, 2002, an agreement was entered into between Axis and the Company,
according  to which the  Company  agreed to cease to sell CDT kits  among  other
intangible  information for  consideration of U.S.  $100,000 paid by Axis to the
Company. As a result of this settlement,  Axis caused a dismissal with prejudice
of all its claims,  and the Company  caused a dismissal  with  prejudice  of the
Company's  counterclaim.  In summary,  this lawsuit from Axis has been resolved.
Further,  with the loss of sales from its CDT  business,  which was  expected to
negatively impact its  immunodiagnostics  business,  the Company also decided to

                                                                            -16-

<PAGE>

discontinue its small in vitro immunodiagnostic  operations in the United States
by the end of September  2002, so that it can focus its resources on the product
development projects in Germany.

ITEM 2 - CHANGE IN SECURITIES AND USE OF PROCEEDS
-------------------------------------------------

None

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
----------------------------------------

Not applicable

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
--------------------------------------------------------------

Not applicable

ITEM 5 - OTHER INFORMATION
--------------------------

As of October 29, 2002, Edgar Fritschi, VM.D., has resigned from his position as
a Director of Sangui BioTech International, Inc. and from all other positions he
previously held in the Company.

ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
-----------------------------------------

CHANGES IN REGISTRANTS CERTIFYING ACCOUNTANT.

Effective  January 1, 2003,  certain  principals of Corbin & Wertz ("C&W"),  the
Company's  independent  auditors,  formed  Corbin & Company  LLP  ("C&C"),  as a
successor public accounting firm and transferred significantly substantially all
of C&W's audit and attest  engagements  clients to C&C. As a result, on February
10, 2003,  the Board of Directors  has  approved  the  engagement  of C&C by the
Company as its independent auditors for the fiscal year ending June 30, 2003.

C&W did not resign or decline to stand for  reelection,  but were  dismissed  on
February 10, 2003 to allow the appointment of C&C.

During the past two fiscal years ending June 30,  2002,  C&W's audit  opinion on
the  Registrant's  financial  statements did not contain an adverse opinion or a
disclaimer  of opinion,  nor was it  modified  as to audit  scope or  accounting
principles.  C&W's report was modified to include an explanatory paragraph where
they expressed substantial doubt about the Registrant's ability to continue as a
going concern.

There were no  disagreements  with C&W during  the past two most  recent  fiscal
years and  through  the date of their  dismissal  on any  matter  of  accounting
principals or practices,  financial  statement  disclosure or auditing  scope or
procedure.  Additionally,  there were no other reportable  matters as defined in
Item 304(a)(1)(iv)(B) of Regulation S-B, during that period of time.

Registrant has provided C&W with a copy of the disclosures  Registrant is making
in this 10-QSB in response to the  disclosures  required by Regulation S-B, Item
304(a).  C&W has furnished  Registrant with a letter addressed to the Commission
stating its agreement and absence of any  disagreement  with the statements made
by  Registrant in response to this Item.  Registrant  has filed  herewith  C&W's
letter as Exhibit 16.1 to this Form 10-QSB.

                                                                            -17-

<PAGE>


EXHIBITS

16.1    Corbin & Wertz letter

99.1    Certification  of Chief  Executive  Officer/Chief  Financial  Officer
        pursuant to 18 U.S.C.  Section 1350,  as Adopted  Pursuant to Section
        906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES
----------

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

SANGUI BIOTECH INTERNATIONAL, INC.


By:      /s/ Wolfgang Barnikol
         ---------------------------------------
         Wolfgang Barnikol
         President, Chief Executive Officer and
         Chief Financial Officer
Date:    February 13, 2003






                                  CERTIFICATION

The undersigned, Prof. Dr. Wolfgang Barnikol, Chief Executive Officer and Chief
Financial Officer, certifies that:

                               CERTIFICATION UNDER
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly  Report of Sangui BioTech  International,  Inc.
(the  "Company") on Form 10-QSB for the period ended December 31, 2002, as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
the  undersigned  certifies,  pursuant  to 18 U.S.C.  Section  1350,  as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, that:

         1. I have  reviewed  this  quarterly  report  on Form  10-QSB of Sangui
Biotech International, Inc. (the "Company");

         2. Based on my knowledge,  this  quarterly  report does not contain any
untrue  statement of a material fact or omit to state a material fact  necessary
to make the  statements  made,  in  light  of  circumstances  under  which  such
statements  were made, not misleading with respect to the period covered by this
quarterly report;

         3. Based on my knowledge, the financial statements, and other financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
Company as of, and for, the periods presented in this quarterly report;

         4. The Company's  other  certifying  officers and I are responsible for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Company and have:

                  a) designed such disclosure  controls and procedures to ensure
that material  information  relating to the Company,  including its consolidated
subsidiaries, is made known to us by others within those entities,  particularly
during the period in which this quarterly report is being prepared;

                  b) evaluated the  effectiveness  of the  Company's  disclosure
controls and  procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

                  c) presented in this quarterly  report our  conclusions  about
the  effectiveness  of the  disclosure  controls  and  procedures  based  on our
evaluation as of the Evaluation Date;

         5. The Company's other certifying officers and I have disclosed,  based
on our most recent evaluation, to the Company's auditors and the audit committee
of  Company's   board  of  directors  (or  persons   performing  the  equivalent
functions):

                                                                            -18-



<PAGE>



                  a) all significant  deficiencies in the design or operation of
internal  controls which could adversely affect the Company's ability to record,
process,  summarize  and  report  financial  data  and have  identified  for the
Company's auditors any material weaknesses in internal controls; and

                  b)  any  fraud,   whether  or  not  material,   that  involves
management  or other  employees  who have a  significant  role in the  Company's
internal controls; and

         6. The Company's other certifying officers and I have indicated in this
quarterly report whether there were significant  changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent  evaluation,  including any corrective  actions with
regard to significant deficiencies and material weaknesses.


Date:    February 13, 2003         By:      /s/ Wolfgang. Barnikol
                                        -------------------------------------
                                         Wolfgang Barnikol, Chief Executive
                                         Officer and Chief Financial Officer






Exhibit 16.1

February 10, 2003


Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549


Gentlemen:

We have read Item 6 of Form 10-QSB of Sangui BioTech International, Inc. for the
event  that  occurred  on  February  10,  2003,  and are in  agreement  with the
statements contained therein insofar as they relate to our firm.


                            /s/Corbin & Wertz
                            ------------------------
                               CORBIN & WERTZ
                               Irvine, California



Exhibit 99.1

                                  CERTIFICATION

The undersigned, Prof. Dr. W. Barnikol, Chief Executive Officer and Chief
Financial Officer, certifies that:

                CERTIFICATION PURSUANT TO 18 U.S.C.SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly  Report of Sangui BioTech  International,  Inc.
(the  "Company") on Form 10-QSB for the period ended December 31, 2002, as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
the  undersigned  certifies,  pursuant  to 18 U.S.C.  Section  1350,  as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the  requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and

(2)The  information  contained in the Report  fairly  presents,  in all material
respects, the financial condition and results of operations of the Company.


Date:    February 13, 2003              /s/ Wolfgang Barnikol
                                        -------------------------------------
                                           Wolfgang Barnikol
                                           President, Chief Executive
                                           Officer and Chief Financial Officer

                                                                            -19-