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  SEPTEMBER 30,  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 September 30, 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.

TABLE  OF  CONTENTS

PART  I.  FINANCIAL  INFORMATION

Item  1.  Financial  Statements

Consolidated  Balance  Sheets at September 30,2000 (Unaudited) and June 30, 2000

Consolidated  Statements  of  Operations  and Comprehensive Loss (Unaudited) for
the Three  months  ended  September  30,  2000  and  1999

Consolidated  Statements  of  Cash  Flows (Unaudited) For the Three months ended
September  30,  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


                                     ASSETS
                                     ------

                                                 SEPTEMBER 30,
                                                     2000
                                                  (UNAUDITED)
                                                  -----------

CURRENT  ASSETS
     Cash and cash equivalents                                   $     7,670,265
     Accounts receivable                                                  88,753
     Inventories                                                          74,486
     Prepaid expenses and other assets                                   172,995
                                                                ----------------
     Total Current Assets                                              8,006,499

PROPERTY AND EQUIPMENT - NET                                             368,814

PATENTS                                                                   41,162
                                                                ----------------
TOTAL ASSETS                                                     $     8,416,475
                                                                ================


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

CURRENT  LIABILITIES
      Accounts payable and accrued expenses                        $     199,249

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

     Stock subscriptions receivable                                    (499,437)
     Prepaid consulting fees                                           (991,169)
     Accumulated other comprehensive loss                              (256,011)
     Accumulated deficit                                             (8,567,038)
                                                                ----------------
     Total stockholders' equity                                        8,217,226
                                                                ----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $ 8,416,475
                                                                ================

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>
                                                            FOR THE
                                                       THREE MONTHS ENDED
                                                          SEPTEMBER 30,
                                                            (UNAUDITED)

                                                             2000          1999
                                              --------------------  ------------

SALES. . . . . . . . . . . . . . . . . . . .  $           122,789   $    94,577

COST OF SALES. . . . . . . . . . . . . . . .               90,617        70,143
                                              --------------------  ------------

GROSS PROFIT . . . . . . . . . . . . . . . .               32,172        24,434
                                              --------------------  ------------
OPERATING EXPENSES
Research and development . . . . . . . . . .              184,736       146,829
General and administrative . . . . . . . . .              321,689       231,954
Depreciation and amortization. . . . . . . .               31,422        28,225
Amortization of prepaid consulting fees. . .              113,831       393,125
                                              --------------------  ------------

Total Operating Expenses . . . . . . . . . .              651,678       800,133
                                              --------------------  ------------

LOSS FROM OPERATIONS . . . . . . . . . . . .             (619,506)     (775,699)

OTHER INCOME
Interest income. . . . . . . . . . . . . . .               70,733        23,115
                                              --------------------  ------------
Net Loss . . . . . . . . . . . . . . . . . .             (548,773)     (752,584)

OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustments . .             (145,197)      147,981
                                              --------------------  ------------

COMPREHENSIVE LOSS . . . . . . . . . . . . .  $          (693,970)  $  (604,603)
                                              ====================  ============

BASIC AND DILUTED LOSS PER SHARE . . . . . .  $             (0.02)  $     (0.02)
                                              ====================  ============

BASIC AND DILUTED WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING. . . . . . . . . .           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
                                                                               THREE MONTHS ENDED
                                                                                   SEPTEMBER 30,
                                                                                    (UNAUDITED)
                                                                        ---------------------------------
                                                                                       2000         1999
                                                                        --------------------  -----------

CASH FLOWS FROM OPERATING ACTIVITIES

Net Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $          (548,773)  $ (752,584)
Adjustments to reconcile net loss to cash used by operating activities
  Depreciation and amortization. . . . . . . . . . . . . . . . . . . .               31,422       28,225
  Amortization of prepaid consulting fees. . . . . . . . . . . . . . .              113,831      393,125

Changes in operating asset and liabilities:
  Accounts receivable and grants receivable. . . . . . . . . . . . . .              143,809       55,734
  Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . .                5,204       36,760
  Prepaid expenses and other assets. . . . . . . . . . . . . . . . . .               42,515       32,776
  Accounts payable and accrued expenses. . . . . . . . . . . . . . . .              (30,957)    (111,974)
                                                                        --------------------  -----------

Net cash used in operating activities. . . . . . . . . . . . . . . . .             (242,949)    (317,938)
                                                                        --------------------  -----------
CASH FLOWS FROM INVESTING ACTIVITIES

  Proceeds from sale of equipment. . . . . . . . . . . . . . . . . . .               22,222            -
  Purchase of equipment. . . . . . . . . . . . . . . . . . . . . . . .                    -      (35,350)
  Proceeds from the sale of marketable securities, net . . . . . . . .                    -    1,288,620
  Proceeds from the sale of investment in AMDL, net. . . . . . . . . .                    -        8,984
                                                                        --------------------  -----------

Net cash provided by investing activities. . . . . . . . . . . . . . .               22,222    1,262,254
                                                                        --------------------  -----------
CASH FLOWS FROM FINANCING ACTIVITIES

  Change of stock subscription receivable. . . . . . . . . . . . . . .               46,931            -
  Proceeds from related party payable. . . . . . . . . . . . . . . . .                    -      120,301
                                                                        --------------------  -----------

  Net cash provided by financing activities. . . . . . . . . . . . . .               46,931      120,301
                                                                        --------------------  -----------
Effect of exchange rate changes on cash. . . . . . . . . . . . . . . .             (145,197)     147,981
                                                                        --------------------  -----------

Net (decrease) increase in cash and cash equivalents . . . . . . . . .             (318,993)   1,212,598

Cash and cash equivalents, beginning of period . . . . . . . . . . . .            7,989,258      305,501
                                                                        --------------------  -----------

Cash and cash equivalents, ending of period. . . . . . . . . . . . . .  $         7,670,265   $1,518,099
                                                                        ====================  ===========
</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 generally accepted accounting principles ("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  period  ended September 30, 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.  The  Company,
pursuant to the recapitalization of Sangui  BioTech, Inc. ("SBT"), is engaged in
the  development  of  Immunodiagnostic  tests.

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, under the name 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  Germany  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.

<PAGE>

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

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  said  clearance,  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.


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.  During  the  quarters  ended September 30, 2000 and 1999, the
Company had foreign exchange transaction (losses) gains included in other income
of  approximately  $(145,000)  and  $148,000,  respectively.

<PAGE>

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

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 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 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.  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.

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

<PAGE>

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

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  4).

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 noncompensatory 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

<PAGE>
------
NOTE  2  -  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES,  CONTINUED
----------------------------------------------------------------------

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

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.

<PAGE>
------
NOTE  4  -  BUSINESS  SEGMENTS
------------------------------

The Company reports its business segments based on geographic regions, which are
as  follows  for  the  period  ended  September  30:

<TABLE>
<CAPTION>
<S>                                       <C>              <C>
                                             2000                 1999
                                       ----------  -------------------

  Net sales:
    Sangui USA. . . . . . . . . . . .  $  122,789  $            94,577
    Sangui Bio Tech AG. . . . . . . .           -                    -
    GlukoMediTech, AG . . . . . . . .           -                    -
                                       ----------  -------------------

                                       $  122,789  $            94,577
                                       ==========  ===================


  Net loss:
    Sangui USA. . . . . . . . . . . .  $  244,575  $           525,049
    Sangui Bio Tech AG. . . . . . . .     172,492              137,968
    GlukoMediTech, AG . . . . . . . .     107,592               89,567
    Sangui BioTech PTE Ltd, Singapore      24,114                    -
                                       ----------  -------------------

                                       $  548,773  $           752,584
                                       ==========  ===================

  Depreciation and amortization:
    Sangui USA. . . . . . . . . . . .  $    2,959  $             1,560
    Sangui Bio Tech AG. . . . . . . .      20,904               23,333
    GlukoMediTech, AG . . . . . . . .       7,559                3,332
                                       ----------  -------------------

                                       $   31,422  $            28,225
                                       ==========  ===================



                                             2000
                                       ----------

Identifiable assets:
  Sangui USA. . . . . . . . . . . . .  $1,495,632
  Sangui Bio Tech AG                    3,438,270
  GlukoMediTech, AG                     3,460,833
  Sangui BioTech PTE Ltd, Singapore        21,740
                                       -----------
                                       $8,416,475
                                       ==========
</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, including a
chief  financial  officer,  controller,  quality  control  manager,  biomedical
scientist  and engineers.  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  is  currently  in  discussion  with  several  entities  and  expects to
establish a distribution relationship with at least one of these entities in the
near  term.

FINANCIAL  POSITION

The  current  assets of the Company decreased approximately $511,000, or 6% from
June 30, 2000 to $8,006,499 as of September 30, 2000.  The decrease is primarily
attributable  to  a decrease in cash of approximately $319,000 and a decrease in
grants receivable of approximately $177,000.  The decrease in cash was caused by
the  normal  day  to  day  operations  of  the  Company.  The  change  in grants
receivable  was a result of the Company receiving grant payments from sponsoring
governmental  agencies.

The  Company's  fixed  assets  decreased $48,498 to $368,814 as of September 30,
2000.  The  decrease  in  fixed assets was from depreciation and the disposal of
certain  equipment.

The  Company  funded its operation primarily through its existing cash reserves.
The  change in stockholders' equity and liabilities of approximately $564,000 is
primarily  caused  by  the  Company's  current  period  net  loss  of  $548,773.

RESULTS  OF  OPERATIONS

Three  Months  Ended  September  30,  2000  and  1999:

Sales  for  the three-months ended September 30, 2000 were $122,789, compared to
$94,577  for the same period in the prior year.  This is an increase of $28,212,
or  30%.  The increase is primarily attributable to increased marketing efforts.

Cost  of  sales  for  the  three-months  ended  September 30, 2000 were $90,617,
compared  to  $70,143 for the same period in the prior year. This is an increase
of  $20,474, 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 three-months ended September 30, 2000
were  $184,736, compared to $146,829 in the same period in the prior year.  This
increase  of  $37,907,  or  26%  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 September 30,
2000  were $321,689, compared to $231,954 for the same period in the prior year.
This  increase  of  $89,735,  or  39%,  is  attributed  to  the expansion of the
management  team  and  an  increase  in  professional  fees.

Amortization  of prepaid consulting fee for the three-months ended September 30,
2000  was  $113,831,  compared to $393,125 in the same period in the prior year.
The  decrease  of  $279,294, or 71%, 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  September 30, 2000 was $70,733,
compared  to  $23,115  in  the  same  period in the prior year.  The increase in
interest  income  of  $47,618,  or  206%, is caused by the Company investing the
unused  portion  of  the  cash  raised  during  previous  fund  raisings.

LIQUIDITY  AND  CAPITAL  RESOURCES

As  of  September  30,  2000,  the  Company  had  total  stockholders' equity of
$8,217,226  as  compared  to  $8,750,435  at  June  30,  2000.  The  decrease in
stockholders  equity in the current quarter is primarily caused by the Company's
net  loss  of  $548,773.

The Company had cash and cash equivalents of $7,670,265 at September 30, 2000 as
compared  to  $7,989,258  at  June  30,  2000. The decrease in the cash and cash
equivalents  of $318,993 for the quarter ended September 30, 2000, was primarily
due  to  the  Company  financing  all  research and development projects through
existing  cash  reserves  and  government  grants.

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
--------

None

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
--------

During  the quarter ended September 30, 2000, the Company filed a Report on Form
8-K  and  8-K/A  reporting,  under  Item 4, a change in the Company's certifying
accountant.

<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:  November 17, 2000