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,  2000
[     ]     TRANSITION REPORT  PURSUANT TO SECTION 13 OF 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.)


                      1508  BROOKHOLLOW  DRIVE,  SUITE  354
                           SANTA ANA, CALIFORNIA 92705
               (Address of Principal Executive Offices) (Zip Code)
       Registrant's Telephone Number, Including Area Code: (714) 429-7807

                                       N/A
    (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 December  31, 2000
-----------------------------------------      -----------------------------
  Common  Stock,  no par  value                           40,514,363


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  Sheets  at  December  31,  2000  (Unaudited)

         Consolidated  Statements  of  Operations  and  Comprehensive  Loss
         (Unaudited) Three months and Six months ended December 31, 2000 and
         1999.

         Consolidated  Statements  of  Cash  Flows  (Unaudited) Six months ended
         December  31,  2000  and  1999.

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

PART  II.  OTHER  INFORMATION

Item  1.  Legal  Proceedings

Item  2.  Changes  in  Securities

Item  3.  Defaults  Upon  Senior  Securities

Item  4.  Submission  of  Matters  to  a  Vote  of  Security  Holders

Item  5.  Other  Information

Item  6.  Exhibits  and  Reports  on  Form  8-K


<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>



<S>                                                      <C>
                              ASSETS
                              ------
                                                           DECEMBER 31,
                                                                  2000
                                                            (UNAUDITED)
                                                        ---------------

CURRENT ASSETS
  Cash and cash equivalents . . . . . . . . . . . . . .  $   7,032,635
  Accounts receivable . . . . . . . . . . . . . . . . .        113,288
  Inventories . . . . . . . . . . . . . . . . . . . . .         66,730
  Prepaid expenses and other assets . . . . . . . . . .        295,890
                                                         --------------
  Total Current Assets. . . . . . . . . . . . . . . . .      7,508,543

PROPERTY AND EQUIPMENT - NET. . . . . . . . . . . . . .        581,193

PATENTS . . . . . . . . . . . . . . . . . . . . . . . .         43,133
                                                         --------------

TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . .  $   8,132,869
                                                         ==============



               LIABILITIES & STOCKHOLDERS' EQUITY
               ----------------------------------

CURRENT LIABILITIES
  Accounts payable and accrued expenses . . . . . . . .  $     189,506
  Liability for patent-related litigation . . . . . . .        115,000
                                                         --------------
  Total current liabilities . . . . . . . . . . . . . .        304,506

COMMITMENTS & 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, 40,514,363 shares issued and outstanding.     18,530,881

  Additional paid-in capital. . . . . . . . . . . . . .        500,000
  Stock subscriptions receivable. . . . . . . . . . . .       (225,000)
  Prepaid consulting fees . . . . . . . . . . . . . . .       (881,169)
  Accumulated other comprehensive loss. . . . . . . . .       (131,848)
  Accumulated deficit . . . . . . . . . . . . . . . . .     (9,964,501)
                                                         --------------

  Total stockholders' equity. . . . . . . . . . . . . .      7,828,363
                                                         --------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY. . . . . . .  $   8,132,869
                                                         ==============
</TABLE>

The accompanying notes are an integral part of these consolidated financial
statements


<PAGE>

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

<TABLE>
<CAPTION>



<S>                                             <C>                   <C>                 <C>           <C>
                                                                    FOR THE                         FOR THE
                                                             THREE MONTHS ENDED                SIX MONTHS ENDED
                                                                DECEMBER 31,                      DECEMBER 31,
                                                                (UNAUDITED)                        (UNAUDITED)
                                                           --------------------                 ------------------
                                                               2000                1999          2000          1999
                                                --------------------  ------------------  ------------  ------------


SALES. . . . . . . . . . . . . . . . . . . . .  $           138,082   $         114,491   $   262,983   $   209,068

COST OF SALES. . . . . . . . . . . . . . . . .               83,205              67,438       173,822       137,581
                                                --------------------  ------------------  ------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . . .               54,877              47,053        89,161        71,487

OPERATING EXPENSES
Research and development . . . . . . . . . . .              345,556             221,786       494,304       368,615
General and administrative . . . . . . . . . .              721,871             250,697       897,807       482,652
Compensation expense related to stock options.              500,000                   -       500,000             -
Depreciation and amortization. . . . . . . . .               34,390              31,668        65,052        63,392
Amortization of prepaid consulting fees. . . .              110,000             393,125       223,831       786,250
                                                --------------------  ------------------  ------------  ------------

Total Operating Expenses . . . . . . . . . . .            1,711,817             897,276     2,180,994     1,700,909

LOSS FROM OPERATIONS . . . . . . . . . . . . .           (1,656,940)           (850,223)   (2,091,833)   (1,629,422)

OTHER INCOME
Interest income. . . . . . . . . . . . . . . .               74,734               8,146       145,597        31,261
                                                --------------------  ------------------  ------------  ------------

Loss from continuing operations. . . . . . . .           (1,582,206)           (842,077)   (1,946,236)   (1,598,161)

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments . . .              308,906              15,330       (21,034)      116,810
                                                --------------------  ------------------  ------------  ------------

COMPREHENSIVE LOSS . . . . . . . . . . . . . .  $        (1,273,300)  $        (826,747)  $(1,967,270)  $(1,481,351)
                                                ====================  ==================  ============  ============

NET LOSS AVAILABLE TO COMMON
SHAREHOLDERS PER COMMON STOCK
Loss from continuing operations. . . . . . . .               ($0.04)             ($0.03)       ($0.05)       ($0.05)
Comprehensive Income (loss). . . . . . . . . .  $              0.01   $            0.00        ($0.00)  $      0.00
                                                --------------------  ------------------  ------------  ------------
                                                             ($0.03)             ($0.03)       ($0.05)       ($0.05)
                                                ====================  ==================  ============  ============

BASIC AND DILUTED WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING. . . . . . . . . . . . . . . . . .           40,514,303          31,867,878    40,514,303    31,867,878
                                                ====================  ==================  ============  ============
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>



<S>                                                                           <C>                 <C>
                                                                                            FOR THE
                                                                                       SIX MONTHS ENDED
                                                                                         DECEMBER 31,
                                                                                         (UNAUDITED)
                                                                                      ------------------
                                                                                           2000          1999
                                                                              ------------------  ------------

CASH FLOWS FROM OPERATING ACTIVITIES

Net Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $      (1,946,236)  $(1,598,161)
Adjustments to reconcile net loss to cash used by operating activities
  Compensation expense related to vesting of previously issued stock options            500,000             -
  Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . .             65,052        63,392
  Amortization of prepaid consulting fees. . . . . . . . . . . . . . . . . .            223,831       786,250

Changes in operating asset and liabilities:
  Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . .            (57,570)       44,340
  Grant receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            176,844             -
  Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             12,960        67,748
  Prepaid expenses and other assets. . . . . . . . . . . . . . . . . . . . .            (80,380)      (32,142)
  Accounts payable and accrued expenses. . . . . . . . . . . . . . . . . . .            (40,699)      254,383
  Liability for patent-related litigation. . . . . . . . . . . . . . . . . .            115,000             -
                                                                              ------------------  ------------

Net cash used in operating activities. . . . . . . . . . . . . . . . . . . .         (1,031,198)     (414,190)

CASH FLOWS FROM INVESTING ACTIVITIES

  Proceeds from sale of marketable securities. . . . . . . . . . . . . . . .                  -     1,288,620
  Purchase of property and equipment . . . . . . . . . . . . . . . . . . . .           (228,933)     (126,666)
                                                                              ------------------  ------------

Net cash (used in) provided by investing activities. . . . . . . . . . . . .           (228,933)    1,161,954

CASH FLOWS FROM FINANCING ACTIVITIES
  Change of stock subscription receivable. . . . . . . . . . . . . . . . . .            321,367             -

Effect of exchange rate changes. . . . . . . . . . . . . . . . . . . . . . .            (17,859)       94,684
                                                                              ------------------  ------------

Net (decrease) increase in cash and cash equivalents . . . . . . . . . . . .           (956,623)      842,448
                                                                                              -
Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . .          7,989,258       305,501
                                                                              ------------------  ------------

Cash and cash equivalents, ending of period. . . . . . . . . . . . . . . . .  $       7,032,635   $ 1,147,949
                                                                              ==================  ============

Supplemental disclosures:
  Cash paid during the period for:
  Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $             973   $     1,008
                                                                              ==================  ============
  Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $               -   $         -
                                                                              ==================  ============
  Non-cash activities:
  Increase in additional paid-in capital pursuant to stock options . . . . .  $         500,000   $         -
                                                                              ==================  ============
</TABLE>


The accompanying notes are an integral part of these consolidated financial
statements

<PAGE>


                       SANGUI BIOTECH INTERNATIONAL, INC.
                   Notes to Consolidated Financial Statements

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 ("GAAP") for interim information and with the instructions to
Form  10-QSB  and  Item  301  of  Regulation S-B.  Accordingly, the accompanying
consolidated  financial  statements  do  not  include  all  the  information and
footnotes  required  by  GAAP  for complete financial statements.  The unaudited
consolidated  financial  statements  and  notes  should,  therefore,  be read in
conjunction  with  the financial statements and notes thereto in Form 10-KSB for
the  year  ended  June  30, 2000.  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-month
and  six-month periods ended December 31, 2000 are not necessarily indicative of
the  results  that  may  be  expected  for  the  entire  fiscal  year.


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

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

Sangui  BioTech  International,  Inc.  (the "Company") ("SGBI") was incorporated
under  the  laws  of the state of Colorado on July 14, 1995.    Since inception,
the  Company  has  primarily  been  engaged  in  the  commercial development and
manufacturing  of  immunodiagnostic kits, which are sold by the Company in niche
markets  in  the  United  States  and  Europe,  by of the Company's wholly owned
subsidiary  Sangui  BioTech,  Inc.  ("Sangui USA").  Sangui USA's laboratory and
headquarters  are located in Santa Ana, California, and this facility is devoted
to  immunodiagnostic  research,  development,  manufacturing  and  distributing,
marketing,  and  administrative  functions  for  the  Company.  Sangui  USA  was
incorporated  in  the  state  of  Delaware on August 2, 1996.  Sangui USA is the
parent  company to two wholly owned subsidiaries, SanguiBioTech AG ("Sangui AG")
and  GlukoMediTech,  AG  ("Gluko").  Sangui  AG  and  Gluko were incorporated in
Mainz,  Germany on November 25, 1995 and July 15, 1996, respectively.  Sangui AG
and  Gluko  are  engaged  in  the  development of artificial oxygen carriers and
glucose  implant  sensors,  respectively.

On May 15, 1999, Sangui BioTech PTE Ltd. ("SBTS") was incorporated in Singapore.
SBTS  is  expected to become a regional office for SGBI and its subsidiaries and
to  be engaged in the business of carrying out research and development projects
in  conjunction  with  the  German  subsidiaries.

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

The  consolidated  financial  statements include the accounts of the Company and
its  wholly  owned  domestic  and  foreign  subsidiaries.  All  significant
inter-company accounts and transactions have been eliminated upon consolidation.

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

Both  the Company's small line of in vitro immunodiagnostic products, as well as
the  future  pharmaceutical  (artificial oxygen carriers or blood substitute and
additives)  and  in  vivo biosensors (glucose implant sensor) being developed by
its German subsidiaries, 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.
Currently, most of the Company's immunodiagnostic tests for use with humans have
been  cleared  by the above regulatory agencies.  There can be no assurance that
the  Company  will  maintain  the  regulatory  approvals  required to market its
products  elsewhere.  The  pharmaceutical  and  biosensor  products,  under
development  in  Germany  and  Singapore  (in  the  future),  will be subject to
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  failure  in obtaining regulatory clearance as well as the timely
receipt  of  the  clearances,  if  obtained.

The  Company's  revenues  from  product  sales derived from its immunodiagnostic
operations in the U.S. are small.  However, management believes its current cash
position  is  sufficient  to  fund  the Company's operations and working capital
requirements  through  June  30,  2001.



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

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

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

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

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

The  Company  has  adopted  Statement of Financial Accounting Standards  No. 128
(SFAS  No.  128)  "Earnings  Per Share." SFAS No. 128 changes the methodology of
calculating  earnings  per  common  share.  The adoption of SFAS No. 128 has not
materially  impacted  the Company's financial position or results of operations.

Basic  earnings  (loss)  per  common  share  are  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.
Basic  and diluted loss per share are the same as the effect of stock options on
loss  per  share are anti-dilutive and thus not included in the diluted loss per
share  calculation.

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

Assets  and  liabilities  of the Company's German 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 earnings but are included
in comprehensive income and accumulated in a separate component of stockholders'
equity.  Income  and  expenses are translated at weighted average exchange rates
for  the period.  The Company had foreign exchange transaction gains (losses) of
$308,906  and $15,330 for the three months ended December 31, 2000 and 1999, and
$(21,304)  and  $116,810  for  the  six months ended December 31, 2000 and 1999,
respectively.

Comprehensive  Income
---------------------

The Company has adopted SFAS No. 130, "Reporting Comprehensive Income." SFAS No.
130  establishes standards for reporting and display of comprehensive income and
its  components  in  a  full set of general-purpose financial statements.  Total
comprehensive  income 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  are  the  changes  in  the  cumulative  foreign  currency  translation
adjustments  and  unrealized gains (losses) on marketable securities recorded as
components  of  stockholders'  equity.

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

The  Company  has  adopted  SFAS  No.  131,  "Disclosures  about  Segments of an
Enterprise  and  Related  Information".  SFAS  No.  131  changes  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  5).

Web  Site  Development  Costs
-----------------------------

The  Company  has  adopted  the  Emerging  Issues  Task  Force  Issue  No. 00-2,
"Accounting  for  Web  Site  Development  Costs",  ("EITF 00-2").  The consensus
states  that  for  specific  web site development costs, the accounting for such
costs  should  be  accounted  for under Statement on Position 98-1 ("SOP 98-1"),
"Accounting  for  the  Costs  of  Computer  Software  Developed  or Obtained for
Internal  Use".  The adoption of EITF 00-2 did not have a material effect on its
financial  statements.

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

The  Company  adopted the FASB Interpretation No. 44 ("FIN 44"), "Accounting for
Certain Transactions involving Stock Compensation, an interpretation of APB 25."
FIN  44  clarifies  the application of APB 25 for (a) the definition of employee
for purposes of applying APB 25, (b) the criteria for determining whether a plan
qualifies as a non-compensatory plan, (c) the accounting consequence for various
modifications  to the terms of a previously fixed stock option or award, and (d)
the  accounting  for  an  exchange  of  stock  compensation awards in a business
combination.  The  adoption  of  FIN  44  did  not have a material effect on the
financial  statements.

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

The FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging
Activities".  SFAS  No.  133  establishes accounting and reporting standards for
derivative  instruments,  including  certain  derivative instruments embedded in
other  contracts,  and  for  hedging  activities.  It  requires  that  an entity
recognize  all  derivatives as either assets or liabilities on the balance sheet
at  their  fair value.  This statement is effective for financial statements for
all  fiscal  quarters  of  all  fiscal  years  beginning after June 15, 2000 (as
amended  by  SFAS  No.  137).  The  Company does not expect the adoption of this
standard  to  have  a  material  impact  on its results of operations, financial
position  or  cash  flows  as  it currently does not engage in any derivative or
hedging  activities.

In December 1999, the Securities and Exchange Commission issued Staff Accounting
Bulletin  101  ("SAB  101"),  "Revenue  Recognition,"  which  outlines the basic
criteria  that  must  be  met  to  recognize  revenue  and provides guidance for
presentation  of  revenue  and  for  disclosure  related  to revenue recognition
policies  in  financial  statements  filed  with  the  Securities  and  Exchange
Commission.  The  effective  date of this pronouncement is the fourth quarter of
the  fiscal  year  beginning after December 15, 1999.  The Company believes that
adopting  SAB  101 will not have a material impact on its financial position and
results  of  operations.

Reclassifications
-----------------

Certain  prior  period  amounts have been reclassified to conform to the current
period  presentation.

NOTE  3  -  RETIREMENT  OF  PREFERRED  STOCK
--------------------------------------------

During  the  six  months  ended  December  31, 2000, the Company retired all the
outstanding  shares  of  its  preferred  stock.  As  a  result,  preferred stock
decreased  by  $5,050  and  common  stock  increased  by  $5,050.

NOTE  4  -  LIABILITY  FOR  PATENT-REALATED  LITIGATION
-------------------------------------------------------

On December 20, 2000, Axis/Shields ASA, a Norway Corporation, filed a lawsuit in
the  United  States District Court in the Southern California District, alleging
that  the  manufacture  or  sale  by  Sangui  USA  of its Carbohydrate-Deficient
Transferring  ("CDT")  test  kit, which is used to detect chronic alcohol abuse,
constituted  an infringement of patent rights owned by Axis. The lawsuit further
sought  to enjoin the manufacture and sale of the CDT kits by Sangui of the type
manufactured  by  Sangui  USA at the time Axis filed its complaint.  The Company
does  not  believe  that  it  has  infringed on the patent rights owned by Axis;
however,  any  proceeding  or  litigation  has  the  element  of uncertainty and
accordingly,  the  Company  has  recorded  a  liability of $115,000 for its best
estimate  of  potential  costs  to  be  incurred  defending  against  the patent
infringement  claims.  In  the  opinion of the Company, the accrued liability is
adequate,  and  the  ultimate resolution of this matter will not have a material
effect  on the Company's consolidated financial position, results of operations,
or  cash  flows.

NOTE  5  -  BUSINESS  SEGMENTS
------------------------------

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

<TABLE>
<CAPTION>



<S>                                <C>                               <C>                             <C>         <C>
                                               Three Months Ended December 31,      Six Months Ended December 31,
                                               --------------------------------     ------------------------------
                                                2000               1999              2000        1999
                                                ----               ----              ----        ----

Net sales:
----------
Sangui USA. . . . . . . . . . . .  $              138,082  $            114,491  $  262,983  $  209,068
Sangui BioTech AG . . . . . . . .                       -                     -           -           -
GlukoMediTech,AG. . . . . . . . .                       -                     -           -           -
Sangui BioTech PTE Ltd, Singapore                       -                     -           -           -
                                   ----------------------  --------------------  ----------  ----------
                                   $              138,082  $            114,491  $  262,983  $  209,068
                                   ======================  ====================  ==========  ==========


Net loss:
---------
Sangui USA. . . . . . . . . . . .  $              877,156  $            493,878  $1,119,619  $1,022,427
Sangui BioTech AG . . . . . . . .                 460,042               279,772     571,265     417,740
GlukoMediTech,AG. . . . . . . . .                 219,264                68,427     205,494     157,994
Sangui BioTech PTE Ltd, Singapore                  25,744                     -      49,858           -
                                   ----------------------  --------------------  ----------  ----------
                                   $            1,582,206  $            842,077  $1,946,236  $1,598,161
                                   ======================  ====================  ==========  ==========


Depreciation and amortization
-----------------------------
Sangui USA. . . . . . . . . . . .  $              114,097  $            396,625  $  229,887  $  793,250
Sangui BioTech AG . . . . . . . .                  21,410                21,176      43,324      44,509
GlukoMediTech,AG. . . . . . . . .                   8,883                 6,992      15,672      11,883
Sangui BioTech PTE Ltd, Singapore                       -                     -           -           -
                                   ----------------------  --------------------  ----------  ----------
                                   $              144,390  $            424,793  $  288,883  $  849,642
                                   ======================  ====================  ==========  ==========

Identifiable assets
-------------------
Sangui USA. . . . . . . . . . . .  $            1,231,281
Sangui BioTech AG . . . . . . . .               3,162,176
GlukoMediTech,AG. . . . . . . . .               3,319,699
Sangui BioTech PTE Ltd, Singapore                 419,713
                                   ----------------------
                                   $            8,132,869
                                   ======================
</TABLE>


<PAGE>

ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF FINANCIAL CONDITION AND
--------
RESULTS  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,  which  are  made pursuant to the Safe Harbor provisions of the Private
Securities  Litigation  Reform  Act  of  1995.  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,  and  in  the  manufacturing,  marketing  and
distribution  of  in  vitro  immunodiagnostic  test  kits.

In  1999, the Company established a subsidiary in Singapore.  This subsidiary is
expected  to  become  the Company's Pacific Rim headquarters.  In the near term,
the  Company  expects  to  perform  research  and development activities in this
facility.  Future  activities  at this location are expected to include clinical
trials  as  well  as  being  the  center of the Pacific Rim sales, marketing and
distribution  divisions.


The  Company  is actively building its management and support team.  The Company
has  recently  retained  a chief scientific officer and biomedical scientist for
its  Singapore  operation and a biomedical scientist and project coordinator for
its  German operations.  The Company is currently looking to attract several key
positions  in  its  German,  Singapore and United States operations.  Management
plans  to  fill  these  positions  as  qualified  personnel  are  identified and
retained.

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

Efforts  to  expand  the  distribution  channels  for  the  Company's diagnostic
products  have  attracted  interest both domestically and internationally.   The
Company  has  recently  engaged an European consultant, who has over a decade of
successful  experience  in marketing and distribution management with her former
employer.


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

The  current  assets  of the Company decreased $1,008,477, or 12%, from June 30,
2000  to  $7,508,543  as  of  December  31,  2000.  The  decrease  is  primarily
attributable  to  a  decrease  in  cash of approximately $957,000, a decrease in
grants  receivable of approximately $177,000, an increase in accounts receivable
of  approximately  $58,000,  and  an  increase  in  prepaid  and other assets of
approximately $80,000.  The decrease in cash and increase in accounts receivable
and  prepaid  and other assets was caused by the normal day to day operations of
the  Company.  The  change  in  grants  receivable  was  a result of the Company
receiving  a  lower  amount  of  grant  payments  from  sponsoring  governmental
agencies.

The  Company's  property  and  equipment  increased  $163,881, to $581,193 as of
December 31, 2000.  Property and equipment increased approximately $229,000 from
the  purchase  of  certain  property  and  equipment and decreased approximately
$65,000  due  to  depreciation.

The  Company funded its operations primarily through its existing cash reserves.
The  decrease  in stockholders' equity and liabilities of approximately $848,000
is  primarily  caused  by the Company's current period net loss of $1,946,236, a
reduction  in  stock subscription receivable of $321,367, a reduction in prepaid
consulting  fees  of  $223,831, and an increase in additional paid-in capital of
$500,000.


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

Three  Months  Ended  December  31,  2000  and  1999:

Sales  for  the  three-months  ended December 31,2000 were $138,082, compared to
$114,491 for the same period in the prior year.  This is an increase of $23,591,
or  21%.  The increase is primarily attributable to increased marketing efforts.

Cost  of  sales  for  the  three-months  ended  December  31, 2000 were $83,205,
compared  to $67,438 for the same period in the prior year.  This is an increase
of  $15,767, or 23%, and is directly related to the increase in the sales of the
Company's  immunodiagnostic  test  kits.

Research  and  development expenses for the three-months ended December 31, 2000
were  $345,556, compared to $221,786 in the same period in the prior year.  This
increase  of  $123,770,  or  56% is attributed to the Company expanding both the
number  of  developmental projects in process and the number of employees in the
research  and  development  area.  The Company anticipates that the research and
development  costs  of  the  Company will continue to increase in the near term.

General and administrative expenses for the three-months ended December 31, 2000
were $721,871, compared to $250,697 for the same period in the prior year.  This
increase  of $471,174, or 188%, is attributed to the expansion of the management
team,  an  increase  in  professional fees, and the recording of a liability for
patent-related  litigation.

Compensation  expense  related  to  stock  options  for  the  three-months ended
December  31,  2001  was $500,000, which represents the amortization of the fair
value  of stock options previously issued to the chairman of the Company.  There
was  no compensation expense related to stock options for the same period in the
prior  year.

Amortization  of  prepaid consulting fee for the three-months ended December 31,
2000  was  $110,000,  compared to $393,125 in the same period in the prior year.
The  decrease  of  $283,125, or 72%, results from an extension in the consulting
agreement  for  an additional 24 months effective at the beginning of July 2000.
Interest  income  for  the  three-months  ended  December  31, 2000 was $74,734,
compared  to  $8,146  in  the  same  period  in the prior year.  The increase in
interest  income  of  $66,588,  or  817%, is caused by the Company investing the
unused  portion  of  the  cash  raised  during  previous  fund  raisings.



Six  Months  Ended  December  31,  2000  and  1999:

Sales  for  the  six-months  ended  December  31,2000 were $262,983, compared to
$209,068 for the same period in the prior year.  This is an increase of $53,915,
or  26%.  The increase is primarily attributable to increased marketing efforts.

Cost of sales for the six-months ended December 31, 2000 were $173,822, compared
to  $137,581  for  the  same  period  in the prior year.  This is an increase of
$36,241,  or  26%,  and  is directly related to the increase in the sales of the
Company's  immunodiagnostic  test  kits.

Research  and  development  expenses  for the six-months ended December 31, 2000
were  $494,304, compared to $368,615 in the same period in the prior year.  This
increase  of  $125,689,  or  34% is attributed to the Company expanding both the
number  of  developmental projects in process and the number of employees in the
research  and  development  area.  The Company anticipates that the research and
development  costs  of  the  Company will continue to increase in the near term.

General  and  administrative expenses for the six-months ended December 31, 2000
were $897,807, compared to $482,652 for the same period in the prior year.  This
increase  of  $415,155, or 86%, is attributed to the expansion of the management
team,  an  increase  in  professional fees, and the recording of a liability for
patent-related  litigation.

Compensation  expense related to stock options for the six-months ended December
31,  2001  was  $500,000, which represents the amortization of the fair value of
stock  options  previously  issued to the chairman of the Company.  There was no
compensation  expense  related to stock options for the same period in the prior
year.


Amortization  of  prepaid  consulting  fee for the six-months ended December 31,
2000  was  $223,831,  compared to $786,250 in the same period in the prior year.
The  decrease  of  $562,419, or 72%, results from an extension in the consulting
agreement  for  an additional 24 months effective at the beginning of July 2000.
Interest  income  for  the  six-months  ended  December  31,  2000 was $145,597,
compared  to  $31,261  in  the  same  period in the prior year.  The increase in
interest  income  of  $114,336,  or 366%, is caused by the Company investing the
unused  portion  of  the  cash  raised  during  previous  fund  raisings.



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

As  of  December  31,  2000,  the  Company  had  total  stockholders'  equity of
$7,828,363  as  compared  to  $8,750,435  at  June  30,  2000.  The  decrease in
stockholders  equity  in  the  six  months  ended December 31, 2000 is primarily
caused  by  the  Company's  net  loss  of  $1,946,236.

For  the  six-month  period  ended  December 31, 2000, cash and cash equivalents
declined $956,623, or 12%, to $7,032,635 at December 31, 2000 from $7,989,258 at
June  30,  2000.  Cash  flows used in operating activities were $1,031,198.  The
principal  source  of  cash  flow  from  operating  activities was approximately
$177,000  from the Company receiving grant payments from sponsoring governmental
agencies  and  an  increase  in  the  liability for patent-related litigation of
$115,000.  The  principal  uses of cash flow from operating activities was a net
loss  before  depreciation,  amortization,  and  compensation  related  to stock
options,  of approximately $1,157,000 primarily due to the Company financing all
research  and development projects through existing cash reserves and government
grants, an increase in accounts receivable of approximately $58,000, an increase
in prepaid expenses and other assets of approximately $80,000, and a decrease in
accounts payable and accrued expenses of approximately $41,000.  Cash flows used
in  investing  activities  totaled  approximately  $229,000, for the purchase of
property  and  equipment.  Cash  flows  provided by financing activities totaled
approximately  $321,000,  from  the  receipt  of stock subscriptions receivable.

The  Company  intends  to  intensify  its development efforts during the current
fiscal  year ending June 30, 2001.  The Company believes that its available cash
will  be sufficient to satisfy its requirements through June 30, 2001.  However,
the  Company  will  need  substantial additional funding to fulfill its business
plan  and  the  Company  intends  to  explore  financing  sources for its future
development  activities during the current year.  No assurance can be given that
these  efforts  will  be  successful.


ITEM  3.          QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT MARKET RISK
--------


The  Company  has no derivative financial instruments and no exposure to foreign
currency  exchange  rates  or  interest  rate  risk

PART  II.     OTHER  INFORMATION


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

On December 20, 2000, Axis/Shields ASA, a Norway Corporation, filed a lawsuit in
the  United  States District Court in the Southern California District, alleging
that  the  manufacture  or  sale  by  Sangui  USA  of its Carbohydrate-Deficient
Transferring  ("CDT")  test  kit, which is used to detect chronic alcohol abuse,
constituted  an infringement of patent rights owned by Axis. The lawsuit further
sought  to enjoin the manufacture and sale of the CDT kits by Sangui of the type
manufactured  by  Sangui  USA at the time Axis filed its complaint.  The Company
does  not  believe  that  it  has  infringed on the patent rights owned by Axis;
however,  any  proceeding  or  litigation  has  the  element  of uncertainty and
accordingly,  the  Company  has  recorded  a  liability of $115,000 for its best
estimate  of  potential  costs  to  be  incurred  defending  against  the patent
infringement  claims.  In  the  opinion of the Company, the accrued liability is
adequate,  and  the  ultimate resolution of this matter will not have a material
effect  on the Company's consolidated financial position, results of operations,
or  cash  flows.


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
--------

Not  applicable


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

None

<PAGE>

     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  &  CEO


Dated:  February 14, 2001