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  March 31. 2001
[     ]     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 May 14, 2001
-----------------------------------------          -----------------------------
  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 Sheet at March 31, 2001 (Unaudited)

        Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
Three months and Nine months ended March 31, 2001 and 2000.

         Consolidated  Statements  of  Cash  Flows (Unaudited) Nine months ended
March 31, 2001 and 2000.

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


                                     ASSETS
                                     ------
<TABLE>
<CAPTION>
<S>                                                      <C>
                                                             MARCH 31,
                                                                 2001
                                                           (UNAUDITED)
                                                         -------------

CURRENT ASSETS
  Cash and cash equivalents . . . . . . . . . . . . . .  $  6,214,401
  Accounts receivable . . . . . . . . . . . . . . . . .       106,074
  Inventories . . . . . . . . . . . . . . . . . . . . .        80,559
  Prepaid expenses and other assets . . . . . . . . . .       426,266
                                                         -------------
  Total Current Assets. . . . . . . . . . . . . . . . .     6,827,300

PROPERTY AND EQUIPMENT - NET. . . . . . . . . . . . . .       558,124

PATENTS . . . . . . . . . . . . . . . . . . . . . . . .        38,109

TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . .  $  7,423,533
                                                         =============

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

CURRENT LIABILITIES
  Accounts payable and accrued expenses . . . . . . . .  $    191,674

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

  Additional paid-in capital. . . . . . . . . . . . . .       750,000
  Stock subscriptions receivable. . . . . . . . . . . .      (225,000)
  Prepaid consulting fees . . . . . . . . . . . . . . .      (771,169)
  Accumulated other comprehensive loss. . . . . . . . .      (393,535)
  Accumulated deficit . . . . . . . . . . . . . . . . .   (10,659,318)
                                                         -------------

  Total stockholders' equity. . . . . . . . . . . . . .     7,231,859

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY. . . . . . .  $  7,423,533
                                                         =============
</TABLE>

<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                       NINE MONTHS ENDED
                                                               MARCH 31,                              MARCH 31,
                                                             (UNAUDITED)                             (UNAUDITED)
                                                        --------------------                     -------------------
                                                               2001                 2000          2001          2000
                                                --------------------  -------------------  ------------  ------------


SALES. . . . . . . . . . . . . . . . . . . . .  $           151,680   $          115,329   $   414,662   $   330,786

COST OF SALES. . . . . . . . . . . . . . . . .               92,411               68,753       266,786       206,645
                                                --------------------  -------------------  ------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . . .               59,269               46,576       147,876       124,141

OPERATING EXPENSES
Research and development . . . . . . . . . . .              232,879              219,273       722,866       595,657
General and administrative . . . . . . . . . .              191,073              338,596     1,092,857       675,152
Compensation expense related to stock options.              250,000                    -       750,000             -
Depreciation and amortization. . . . . . . . .               37,312               35,507       102,013        97,507
Amortization of prepaid consulting fees. . . .              110,000              393,125       333,831     1,179,375
                                                --------------------  -------------------  ------------  ------------

Total Operating Expenses . . . . . . . . . . .              821,264              986,501     3,001,567     2,547,691

LOSS FROM OPERATIONS . . . . . . . . . . . . .             (761,995)            (939,925)   (2,853,691)   (2,423,550)

OTHER INCOME
Interest income. . . . . . . . . . . . . . . .               67,178               14,155       212,638        49,916
                                                --------------------  -------------------  ------------  ------------
Net loss . . . . . . . . . . . . . . . . . . .             (694,817)            (925,770)   (2,641,053)   (2,373,634)

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments . . .             (261,687)             (16,523)     (282,721)      (43,932)
                                                --------------------  -------------------  ------------  ------------

COMPREHENSIVE LOSS . . . . . . . . . . . . . .  $          (956,504)  $         (942,293)  $(2,923,774)  $(2,417,566)
                                                ====================  ===================  ============  ============

NET LOSS AVAILABLE TO COMMON
SHAREHOLDERS PER COMMON SHARE
Net loss . . . . . . . . . . . . . . . . . . .               ($0.02)              ($0.03)       ($0.07)       ($0.07)
                                                ====================  ===================  ============  ============

BASIC AND DILUTED WEIGHTED AVERAGE
NUMBER OF COMMON SHARES
OUTSTANDING. . . . . . . . . . . . . . . . . .           40,514,303           32,879,796    40,514,303    32,848,690
                                                ====================  ===================  ============  ============
</TABLE>

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
<S>                                                                           <C>                  <C>
                                                                                               FOR THE
                                                                                           NINE MONTHS ENDED
                                                                                                MARCH 31
                                                                                               (UNAUDITED)
                                                                                          -------------------
                                                                                            2001          2000
                                                                              -------------------  ------------


CASH FLOWS FROM OPERATING ACTIVITIES

Net Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $       (2,641,053)  $(2,373,634)
Adjustments to reconcile net loss to cash used by operating activities
  Compensation expense related to vesting of previously issued stock options             750,000             -
  Depreciation and amortization. . . . . . . . . . . . . . . . . . . . . . .             102,013        97,507
  Amortization of prepaid consulting fees. . . . . . . . . . . . . . . . . .             333,831     1,179,375

Changes in operating asset and liabilities:
  Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . .             (50,356)       28,576
  Grant receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             176,844             -
  Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                (869)       24,403
  Prepaid expenses and other assets. . . . . . . . . . . . . . . . . . . . .            (210,756)      188,883
  Accounts payable and accrued expenses. . . . . . . . . . . . . . . . . . .             (38,531)      (10,795)


Net cash used in operating activities. . . . . . . . . . . . . . . . . . . .          (1,578,877)     (865,685)
                                                                              -------------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES

  Proceeds from sale of marketable securities. . . . . . . . . . . . . . . .                   -       293,130
  Purchase of property and equipment . . . . . . . . . . . . . . . . . . . .            (234,626)     (141,472)


Net cash (used in) provided by investing activities. . . . . . . . . . . . .            (234,626)      151,658
                                                                              -------------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . .                   -     6,538,015
  Collection of stock subscription receivable. . . . . . . . . . . . . . . .             321,367             -
                                                                              -------------------  ------------

Net cash provided by investing activities. . . . . . . . . . . . . . . . . .             321,367     6,538,015
                                                                              -------------------  ------------

Effect of exchange rate changes. . . . . . . . . . . . . . . . . . . . . . .            (282,721)      (43,932)
                                                                              -------------------  ------------

Net (decrease) increase in cash and cash equivalents . . . . . . . . . . . .          (1,774,857)    5,780,056
                                                                                               -
Cash and cash equivalents, beginning of period . . . . . . . . . . . . . . .           7,989,258       305,501
                                                                              -------------------  ------------

Cash and cash equivalents, ending of period. . . . . . . . . . . . . . . . .  $        6,214,401   $ 6,085,557
                                                                              ===================  ============


Supplemental disclosures:
  Cash paid during the period for:
  Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $            1,049   $     1,008
                                                                              ===================  ============
  Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $              800   $         -
                                                                              ===================  ============
</TABLE>

<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  nine-month  periods  ended March 31, 2001 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 in
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 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. ("Sangui Singapore") was incorporated
in  Singapore.  SBTS is expected to become a regional office for the Company and
its  subsidiaries and to be engaged in the business of carrying out research and
development  projects  in  conjunction  with  the  German  subsidiaries.

<PAGE>

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

The  consolidated  financial  statements include the accounts of the Company and
its  wholly  owned  domestic  and  foreign  subsidiaries.  All  significant
intercompany  accounts  and  transactions have been eliminated in 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.

<PAGE>

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  losses  of
$(261,687) and $(16,523) for the three months ended March 31, 2001 and 2000, and
$(282,721)  and  $(43,932)  for  the  nine months ended March 31, 2001 and 2000,
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  6).


<PAGE>

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  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.

Accounting  for  Derivative  Instruments  and  Hedging  Activities
------------------------------------------------------------------

The  Company  has  adopted  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.  The  adoption  of  this standard did not  have a
material  impact  on  the Company's results of operations, financial position or
cash  flows  as  it  currently  does  not  engage  in  any derivative or hedging
activities.

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


<PAGE>

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

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

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

During  the  nine  months  ended  March  31,  2001,  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  -  PATENT  RELATED  LITIGATION  SETTLEMENT
---------------------------------------------------

On  December  20,  2000,  Axis/Shields ASA, a Norway Corporation (Axis), 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.  On  March  26,  2001,  an agreement was reached with Axis to resolve this
lawsuit.  Sangui  USA  agreed to cease the manufacture or sale of  its ChronAlco
CDT  test  kit  by  June  26, 2001.  Sangui USA has redesigned a new CDT kit and
plans to introduce the new kit to current and potential new customers by May 31,
2001.


NOTE  5  -  COMPENSATION  EXPENSE  RELATED  TO  STOCK  OPTIONS

Per  Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to
Employees",  the  Company  has  recognized  compensation  expense for previously
issued  options  in  the  amount  of  $250,000  and $750,000 in the accompanying
statement  of  operations  for  the  three and nine months ended March 31, 2001,
respectively.

<PAGE>

NOTE  6  -  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     Nine months ended
                                           March 31,              March 31,
                                         2001      2000        2001        2000
                                   ----------  --------  ----------  ----------

Net sales:
---------------------------------
Sangui USA. . . . . . . . . . . .  $  151,680  $115,329  $  414,662  $  330,786
Sangui BioTech AG . . . . . . . .           -         -           -           -
GlukoMediTech,AG. . . . . . . . .           -         -           -           -
Sangui BioTech PTE Ltd, Singapore           -         -           -           -
                                   ----------  --------  ----------  ----------
                                   $  151,680  $115,329  $  414,662  $  330,786
                                   ==========  ========  ==========  ==========


Net loss:
---------------------------------
Sangui USA. . . . . . . . . . . .  $  344,975  $638,052  $1,475,895  $1,478,691
Sangui BioTech AG . . . . . . . .     215,826   174,848     778,946     595,025
GlukoMediTech,AG. . . . . . . . .      97,305   112,870     299,642     299,918
Sangui BioTech Singapore PTE Ltd.      36,711         -      86,570           -
                                   ----------  --------  ----------  ----------
                                   $  694,817  $925,770  $2,641,053  $2,373,634
                                   ==========  ========  ==========  ==========


Depreciation and amortization
---------------------------------
Sangui USA. . . . . . . . . . . .  $  117,019  $402,946  $  344,985  $1,200,310
Sangui BioTech AG . . . . . . . .      21,410    20,233      65,703      62,313
GlukoMediTech,AG. . . . . . . . .       8,883     5,453      25,156      14,259
Sangui BioTech Singapore PTE Ltd.           -         -           -           -
                                   ----------  --------  ----------  ----------
                                   $  147,312  $428,632  $  435,844  $1,276,882
                                   ==========  ========  ==========  ==========

Identifiable assets
-------------------
Sangui USA. . . . . . . . . . . .  $1,129,168
Sangui BioTech AG . . . . . . . .   2,846,320
GlukoMediTech,AG. . . . . . . . .   3,031,661
Sangui BioTech Singapore PTE Ltd.     416,384
                                   ----------
                                   $7,423,533
                                   ==========
</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 approximately $1,690,000, or 20%,
from  June  30,  2000  to  approximately  $6,827,000  as of March 31, 2001.  The
decrease  is  primarily  attributable  to  a  decrease  in cash of approximately
$1,775,000,  a  decrease  in  grants  receivable  of  approximately $177,000, an
increase  in  accounts  receivable  of approximately $51,000, and an increase in
prepaid  and  other  assets of approximately $211,000.  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  approximately  $141,000, to
approximately  $558,000  as of March 31, 2001.  Property and equipment increased
approximately  $235,000  from the purchase of certain property and equipment and
decreased  approximately  $94,000  due  to  depreciation.

The  Company funded its operations primarily through its existing cash reserves.
The decrease in stockholders' equity and liabilities of approximately $1,557,000
is  primarily  caused  by  the  Company's  current  period comprehensive loss of
approximately  $2,924,000,  a  reduction  in  stock  subscription  receivable of
approximately  $321,000 due to cash collected, a reduction in prepaid consulting
fees  of  approximately $334,000 due to amortization of the prepaid, an increase
in  additional  paid-in  capital  of $750,000 due to the value of options, and a
decrease  in  accounts  payable  of  approximately  $38,000.

<PAGE>

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

Three  Months  Ended  March  31,  2001  and  2000:

Sales  for  the  three-months  ended March 31, 2001 were approximately $152,000,
compared  to approximately $115,000 for the same period in the prior year.  This
is  an  increase  of $37,000, or 32%.  The increase is primarily attributable to
increased  marketing  efforts  of  the  Company's  immunodiagnostic  kits.

Cost  of  sales  for  the  three-months  ended March 31, 2001 were approximately
$92,000,  compared  to  approximately  $69,000  for the same period in the prior
year.  This  is  an  increase of $23,000, or 33%, 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 March 31, 2001 were
approximately $233,000, compared to approximately $219,000 in the same period in
the  prior  year.  This  increase of $14,000, or 6% is attributed to the Company
maintaining  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 increase in the near
term.

General  and  administrative  expenses for the three-months ended March 31, 2001
were  approximately  $191,000,  compared  to approximately $339,000 for the same
period in the prior year.  This decrease of $148,000, or 44%, is attributed to a
decrease  in  professional  and  consulting  fees.

Compensation  expense  related to stock options for the three-months ended March
31,  2001  was  $250,000, 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 March 31, 2001
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 March 31, 2001 was approximately
$67,000, compared to approximately $14,000 in the same period in the prior year.
The  increase  in  interest income of $53,000, or 379%, is caused by the Company
investing  the  unused portion of the cash raised during previous fund raisings.

As  a result, net loss for the three-months ended March 31, 2001 was $(694,817),
or  $(0.02)  per  share,  compared  to  $(925,770), or $(0.03) per share for the
three-months  ended  March  31,  2000.


<PAGE>

Nine  Months  Ended  March  31,  2001  and  2000:

Sales  for  the  nine-months  ended  March 31, 2001 were approximately $415,000,
compared  to approximately $331,000 for the same period in the prior year.  This
is  an  increase  of $84,000, or 25%.  The increase is primarily attributable to
increased  marketing  efforts  of  the  Company's  immunodiagnostic  kits.

Cost  of  sales  for  the  nine-months  ended  March 31, 2001 were approximately
$267,000,  compared  to  approximately $207,000 for the same period in the prior
year.  This  is  an  increase of $60,000, or 29%, and is directly related to the
increase  in  the  sales  of  the  Company's  immunodiagnostic  test  kits.

Research  and development expenses for the nine-months ended March 31, 2001 were
approximately $723,000, compared to approximately $596,000 in the same period in
the  prior year.  This increase of $127,000, or 21% is attributed to the Company
maintaining  both the number of developmental projects in process and the number
of  employees  in the research and development area and a decrease of government
grants  to  offset research and development expenses from approximately $177,000
in  the  prior year to no subsidies received in the current period.  The Company
anticipates that the research and development costs of the Company will increase
in  the  near  term.

General  and  administrative  expenses  for the nine-months ended March 31, 2001
were  approximately  $1,093,000, compared to approximately $675,000 for the same
period  in  the prior year.  This increase of $418,000, or 62%, is attributed to
the  expansion  of  the  management  team  and  an  increase in professional and
consulting  fees.

Compensation expense related to stock options for the nine-months ended December
31,  2001  was  $750,000, 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 nine-months ended March 31, 2001
was   $333,831,  compared  to  $1,179,375  in the same period in the prior year.
The  decrease  of  $845,544, 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  nine-months  ended  March 31, 2001 was approximately
$213,000,  compared  to  approximately  $50,000  in the same period in the prior
year.  The  increase  in  interest income of $163,000, or 326%, is caused by the
Company  investing  the  unused  portion of the cash raised during previous fund
raisings.

As a result, net loss for the nine-months ended March 31, 2001 was $(2,641,053),
or  $(0.07)  per  share,  compared to $(2,373,634), or $(0.07) per share for the
nine-months  ended  March  31,  2000.


<PAGE>

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

As  of  March  31,  2001,  the  Company  had  total  stockholders'  equity  of
approximately  $7,232,000  as  compared  to approximately $8,750,000 at June 30,
2000.  The  decrease  in  stockholders equity in the nine months ended March 31,
2001  is  primarily  caused by the Company's comprehensive loss of approximately
$2,924,000,  offset  by  an  increase  in additional paid in capital of $750,000
related to the amortization of the fair value of stock options previously issued
to the chairman of the Company, and a decrease in prepaid consulting fees due to
amortization  of  the prepaid of approximately $334,000, and a decrease in stock
subscriptions  receivable  due  to  cash collections of  approximately $321,000.

For  the  nine-month  period  ended  March  31,  2001, cash and cash equivalents
declined  approximately $1,775,000, or 22%, to approximately $6,214,000 at March
31,  2001  from  approximately  $7,989,000 at June 30, 2000.  Cash flows used in
operating  activities  were  approximately  $1,579,000.  The principal source of
cash  flow from operating activities was approximately $177,000 from the Company
receiving  grant  payments from sponsoring governmental agencies.  The principal
uses  of cash flow from operating activities was a net loss before depreciation,
amortization,  and  compensation  related  to  stock  options,  of approximately
$1,455,000  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 $51,000, an increase in prepaid expenses
and  other  assets of approximately $211,000, and a decrease in accounts payable
and  accrued  expenses  of  approximately $38,000.  Cash flows used in investing
activities  totaled  approximately  $235,000,  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 remaining
quarter  of  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.

<PAGE>

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

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

On  December  20,  2000,  Axis/Shields ASA, a Norway Corporation (Axis), filed a
lawsuit in the United States District Court in the Southern California District,
alleging  that  the manufacture or sale by the Company's subsidiary, 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.  On March 26, 2001,  an agreement was reached with Axis to resolve this
lawsuit.  Sangui  USA agreed to cease the manufacture or sale of l its ChronAlco
CDT  test  kit  by  June  26, 2001.  Sangui USA has redesigned a new CDT kit and
plans to introduce the new kit to current and potential new customers by May 31,
2001.


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:  May  16 ,2001