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,  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 March 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 March 31, 2000 (Unaudited) and June 30,
1999

         Consolidated  Statements of Income and Comprehensive Income (Unaudited)
Three months ended March 31, 2000 and 1999, Nine months ended March 31, 2000 and
1999  and  from  inception  on  August  2,  1996  to  March  31,  2000

         Consolidated  Statements  of  Shareholders'  Equity

         Consolidated  Statements  of  Cash  Flows (Unaudited) Nine months ended
March  31,  2000 and 1999 and from inception of August 2, 1996 to March 31, 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>
ITEM  1.  FINANCIAL  STATEMENTS





                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                        CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2000

<PAGE>
                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
                           Consolidated Balance Sheets


                                     ASSETS
                                     ------
<TABLE>
<CAPTION>



<S>                            <C>         <C>
                                March 31,    June 30,
                                     2000        1999
                               ----------  ----------
                               (Unaudited)

CURRENT ASSETS

Cash and cash equivalents      $6,085,557  $  305,501
Accounts receivable                70,998      99,574
Inventories                        87,633     112,036
Marketable securities             995,490   1,288,620
Prepaid assets                  1,346,922   1,703,099
                               ----------  ----------

Total Current Assets            8,586,600   3,508,830
                               ----------  ----------

PROPERTY AND EQUIPMENT - NET      451,566     407,601
                               ----------  ----------

OTHER ASSETS

Patents and licenses               50,363      66,185
Other assets                      178,443   1,174,701
                               ----------  ----------

TOTAL ASSETS                   $9,266,972  $5,157,317
                               ==========  ==========
</TABLE>

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

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
                     Consolidated Balance Sheets (Continued)


                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      ------------------------------------


<TABLE>
<CAPTION>



<S>                                                  <C>           <C>
                                                       March 31,      June 30,
                                                            2000          1999
                                                     ------------  ------------
                                                       (Unaudited)

CURRENT LIABILITIES

Accounts payable and accrued expenses                $   141,626   $   102,420
Stock subscriptions                                            -        50,000
                                                     ------------  ------------

Total Current Liabilities                                141,626       152,420
                                                     ------------  ------------

COMMITMENTS AND CONTINGENCIES                             25,000        25,000
                                                     ------------  ------------

STOCKHOLDERS' EQUITY

Preferred stock: no par value; 5,000,000 shares
 authorized, 505,000 shares issued and outstanding         5,050         5,050
Common stock: no par value; 50,000,000 shares
 authorized, 40,514,363 and 31,867,878 issued
 and outstanding, respectively                        18,705,831    10,277,373
Stock subscriptions receivable                        (2,231,515)     (341,072)
Currency translation adjustment                         (107,000)      (63,068)
Deficit accumulated during the development stage      (7,272,020)   (4,898,386)
                                                     ------------  ------------

Total Stockholders' Equity                             9,100,346     4,979,897
                                                     ------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY           $ 9,266,972   $ 5,157,317
                                                     ============  ============
</TABLE>

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

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
           Consolidated Statements of Income and Comprehensive Income

<TABLE>
<CAPTION>
                                     For The                     For The                From Inception on
                                Three Months Ended           Nine Months Ended          August 2, 1996 to
                                     Narch 31,                   March 31,                   March 31,

                                2000             1999          2000       1999                2000
                                _________________________    ____________________           __________
<S>                             <C>            <C>            <C>            <C>            <C>
                                (Unaudited)   (Unaudited )   (Unaudited )   (Unaudited )   (Unaudited )

SALES                           $  115,329   $     80,681   $    330,786   $    151,402     $  620,062

COST OF SALES                       68,753         54,056        206,645        102,038        393,412
                                 __________     __________     __________     __________     __________

GROSS MARGIN                        46,576         26,625        124,141         49,364        226,650
                                 __________     __________     __________     __________     __________

COST AND EXPENSES

Research and development           225,116        201,414        774,902        681,687      2,768,893
General and administrative         731,721         96,320      1,859,527        310,453      4,157,823
Depreciation                        35,507         31,513         97,507         61,561        211,882
                                  __________    __________     __________     __________     __________

Total Costs and Expenses           992,344        329,247      2,726,936      1,053,701      7,138,598
                                  __________    __________     __________     __________     __________

NET LOSS FROM OPERATIONS          (945,768)      (302,622)    (2,602,795)    (1,004,337)    (6,911,948)
                                  __________    __________     __________     __________     __________

OTHER INCOME (EXPENSE)

Interest income                     14,155          3,706         49,916         29,815        123,716
Interest expense                    (2,486)        (3,442)        (2,486)        (3,484)       (18,050)
Other income                         8,329              -        181,731         20,978        440,131
Loss on marketable securities            -       (880,138)             -       (905,869)      (905,869)
                                  __________    __________     __________     __________     __________

Total Other Income (Expense)        19,998       (879,874)       229,161       (858,560)      (360,072)
                                    ------       --------        -------       ---------      ---------

BASIC LOSS                        (925,770)    (1,182,496)    (2,373,634)    (1,862,897)    (7,272,020)


OTHER COMPREHENSIVE
 LOSS

Foreign currency adjustments       (16,523)       (79,841)       (43,932)      (106,589)      (107,000)

                                  __________      __________     __________     __________     _________
COMPREHENSIVE LOSS              $ (942,293)  $ (1,262,337)  $ (2,417,566)  $ (1,969,486)  $ (7,379,020)
                                ============  ============= ============== =============== ===============

BASIC LOSS PER SHARE            $    (0.03)  $      (0.04)  $      (0.07)  $      (0.08)
                                ____________    __________     __________     __________
WEIGHTED AVERAGE NUMBER         32,879,796     28,151,393     32,848,690   $ 24,319,421
                                ============   ===========    ===========   =============
 OF SHARES OUTSTANDING
</TABLE>

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

<PAGE>


                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
                 Consolidated Statements of Shareholders' Equity


<TABLE>
<CAPTION>



<S>                                <C>        <C>       <C>      <C>      <C>         <C>               <C>          <C>
                                                                                                         Deficit
                                                                                                         Accumulated
                                                                                        Other             During the
                                  Preferred Stock        Common Stock       Stock     Comprehensive      Development   Total
                                    Shares     Amount   Shares    Amount  Subscriptions Income (Loss)      Stage      Equity
                                  ----------  -------  ---------  ------- ------------- -------------   ------------  -------
Balance at inception August 2,

                                         -         -   3,400,000   98,465       -                -           -       98,465
Issuance of common stock
 for cash at $0.001 per share            -         -   1,600,000    1,600     (1,600)            -           -            -

Currency translation adjustment          -         -       -         -          -           29,457           -       29,457

Net loss for the period ended
 December 31, 1996                       -         -       -         -          -                -   (539,853)     (539,853)
                                   ---------   -------  ---------  -------  -----------  ---------  -----------  ------------

 Balance, December 31, 1996                             5,000,000 $100,065  $ (1,600)       $29,457  $(539,853)    $(411,931)
                                   =========   ======= =========== ======== ===========  =========  ===========  ============


</TABLE>
The accompanying notes are an integral part of these consolidated
financial statements.

<PAGE>

 SANGUI BIOTECH INTERNATIONAL, INC.
                                    (A Development Stage Company)
                    Consolidated Statements of Shareholders' Equity (Continued)



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

                                                                                                          Deficit
                                                                                                         Accumulated
                                                                                          Other          During the
                                Preferred Stock        Common Stock           Stock       Comprehensive   Development   Total
                                 Shares     Amount      Shares    Amount     Subscriptions Income (Loss)    Stage       Equity
                                 --------  --------- --------- ------------- ------------ -----------   -----------   --------

Balance, December 31, 1996             -           -   5,000,000  $  100,065  $  (1,600)   $  29,457    $(539,853)   $(411,931)

Stock issued for the
 acquisition of Sangui BioTech   505,000       5,050   1,800,000         900           -           -            -        5,950
  recorded at predecessor cost

Common stock issued for
note payable at $0.10 per share        -           -   6.000,000     600,000           -           -            -      600,000

Common stock issued for cash
 at $0.10 per share                    -           -   4,000,000     400,000           -           -            -      400,000

Receipt of stock
subscription receivable                -           -           -           -      1,600            -            -        1,600

Issuance of common stock
 for cash at $0.40 per share           -           -     250,000     100,000         -             -            -      100,000

Issuance of common stock
 for cash at $0.235 per share          -           -   2,744,681     645,000   (25,000)            -            -      620,000

Currency translation adjustment        -           -           -           -         -       126,924            -      126,924
Net loss for the year ended
 December 31, 1997                     -           -           -           -         -             -   (1,181,272)  (1,181,272)
                                ---------- ---------- ----------  ----------  ---------  ---------  ----------- -----------
Balance at December 31, 1997     505,000  $    5,050  19,794,681  $1,845,965  $(25,000)    $ 156,381  $(1,721,125) $   261,271
                               ==========  ========== ========== ===========  =========    =========   ===========  ==========
</TABLE>

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

<PAGE>

                                  SANGUI BIOTECH INTERNATIONAL, INC.
                                    (A Development Stage Company)
                    Consolidated Statements of Shareholders' Equity (Continued)


<TABLE>
<CAPTION>



<S>                                 <C>      <C>     <C>         <C>         <C>         <C>              <C>            <C>
                                                                                                          Deficit
                                                                                                          Accumulated
                                                                                           Other          During the
                                Preferred Stock        Common Stock          Stock         Comprehensive  Development    Total
                                 Shares     Amount    Shares     Amount    Subscriptions    Income (Loss) Stage          Equity
                                ---------- --------  --------- ----------- -------------  --------------  -----------  ---------

Balance, December 31, 1997          505,000 $ 5,050  19,794,681 $ 1,845,965 $  (25,000)    $  156,381     $(1,721,125)   $ 261,271

Issuance of common stock
 for cash at $.235 per share              -       -     755,320     177,500     25,000              -              -       202,500

Issuance of common stock
  for subscriptions receivable at
  $0.50 per share                         -       -   1,062,394     531,197   (531,197)             -              -             -

Issuance of common stock
  for marketable securities at
  $0.50 per share                         -       -   1,928,995     964,498          -              -              -       964,498

Issuance of common stock
  for cash at  $0.50 per share            -       -   4,600,000   2,300,000          -              -              -     2,300,000

Issuance of stock options for
services valued at $1.375 per
share                                     -       -           -      13,650          -              -              -        13,650

Exercise of stock options at
0.01 per share                            -       -      10,000         100          -              -              -           100

Accrued interest contributed
 to capital                               -       -           -      15,505          -              -              -        15,505

Receipt of stock subscriptions            -       -           -           -     63,223              -              -        63,223
                                    -------  ------  ----------  ----------  ----------    -----------   ------------  -----------
Balance Forward                     505,000  $5,050  28,151,390  $5,848,415  $(467,974)     $ 156,381    $(1,721,125)  $ 3,820,747
                                    =======  ======  ==========  ==========  ==========    ==========    ============  ===========
</TABLE>

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

<PAGE>

                        SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
           Consolidated Statements of Shareholders' Equity (Continued)

<TABLE>
<CAPTION>



<S>                                 <C>      <C>     <C>         <C>         <C>         <C>              <C>            <C>
                                                                                                          Deficit
                                                                                                          Accumulated
                                                                                           Other          During the
                                Preferred Stock        Common Stock          Stock         Comprehensive  Development    Total
                                 Shares     Amount    Shares     Amount    Subscriptions    Income (Loss) Stage          Equity
                                ---------- --------  --------- ----------- -------------  --------------  -----------  ---------



Balance Forward                   505,000  $ 5,050  28,151,390 $ 5,848,415  $     (467,974) $   156,381  $ (1,721,125) $3,820,747

Unrealized loss in AMDD
 investment                             -        -           -            -               -    (814,413)            -    (814,413)

Currency translation adjustment         -        -           -            -               -     (59,767)            -     (59,767)

Net loss for the year ended
 December 31, 1998                      -        -           -            -               -           -    (1,357,825) (1,357,825)
                                 ---------------  -------------  ----------  --------------  ------------- ----------- -----------

Balance at December 31, 1998      505,000    5,050 28,151,390    5,848,415        (467,974)    (717,799)   (3,078,950)  1,588,742

Issuance of common stock
 for cash at $1.15 per share            -        -    650,000      747,500               -            -             -     747,500

Issuance of common stock
 for services received                  -        -  2,600,000    3,145,000               -            -             -   3,145,000

Issuance of common stock
 for cash at $1.15 per share            -        -    466,488      536,458               -            -             -     536,458

Receipt of stock subscriptions          -        -          -            -         126,902            -             -     126,902

Recognition of loss on
 investments                            -        -          -            -               -      814,413             -     814,413


Balance Forward                   505,000  $ 5,050 31,867,878  $10,277,373  $     (341,072)   $  96,614   $(3,078,950) $6,959,015
                                 ---------------  -------------  ----------  --------------  ------------ ------------ -----------

</TABLE>

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

<PAGE>

                         SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
           Consolidated  Statements  of  Shareholders'  Equity  (Continued)


<TABLE>
<CAPTION>

<S>                              <C>      <C>       <C>        <C>       <C>              <C>              <C>            <C>
                                                                                                          Deficit
                                                                                                          Accumulated
                                                                                            Other          During the
                                 Preferred Stock        Common Stock          Stock         Comprehensive  Development    Total
                                 Shares     Amount    Shares     Amount    Subscriptions    Income (Loss) Stage          Equity
                                ---------- --------  --------- ----------- -------------  --------------  -----------  ---------



Balance Forward                  505,000  $  5,050  31,867,878  $ 10,277,373  $ (341,072)  $   96,614    $ (3,078,950) $6,959,015

Currency translation
 adjustment                            -         -           -             -           -     (159,682)              -    (159,682)

Net loss for the six months
 and year ended
 June 30, 1999                         -         -           -             -           -            -      (1,819,436) (1,819,436)
                                --------   -------  -----------  -----------   ---------   -----------   -------------  ----------

Balance at June 30, 1999         505,000     5,050  31,867,878    10,277,373    (341,072)     (63,068)     (4,898,386)  4,979,897

</TABLE>

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

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
           Consolidated  Statements  of  Shareholders'  Equity  (Continued)


<TABLE>
<CAPTION>

<S>                              <C>      <C>       <C>        <C>       <C>              <C>              <C>            <C>
                                                                                                          Deficit
                                                                                                          Accumulated
                                                                                            Other          During the
                                 Preferred Stock        Common Stock          Stock         Comprehensive  Development    Total
                                 Shares     Amount    Shares     Amount    Subscriptions    Income (Loss) Stage          Equity
                                ---------- --------  --------- ----------- -------------  --------------  -----------  ---------

Balance at June 30, 1999           505,000  $5,050  31,867,878  $10,277,373  $  (341,072)  $ (63,068)  $(4,898,386)  $ 4,979,897

Common stock issued for
 cash at $1.15 per share                 -       -     466,485      536,458            -           -             -       536,458

Common Stock issued for
Cash and subscriptions receivable
at $0.964 per share                      -       -   8,000,000    7,712,000   (1,976,200)          -             -     5,735,800

Common Stock issued for
Services valued at $1.00
per share                                -       -      80,000       80,000            -           -             -        80,000

Common Stock issued for the
acquisition of Felnam
valued at $1.00 per share                -       -     100,000      100,000            -           -             -       100,000

Subscriptions received                   -       -           -            -       85,757           -             -        85.757

Currency translation
 adjustment                              -       -           -            -            -     (43,932)            -       (43,932)

Net loss for the nine months
 ended March 31, 2000                    -       -           -            -            -           -    (2,373,634)   (2,373,634)
                                   -------  ------  ----------  -----------  ------------  ----------  ------------  ------------

Balance at March 31, 2000          505,000  $5,050  40,514,463  $18,705,831  $(2,231,515)  $(107,000)  $(7,272,020)  $ 9,100,346
                                   =======  ======  ==========  ===========  ============  ==========  ============  ============

</TABLE>

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

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
                Consolidated Statement of Cash Flows (Unaudited)

<TABLE>
<CAPTION>



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

                                                    For the nine    For the nine   From Inception of
                                                    months ended    months ended    August 2, 1996
                                                    March 31, 2000  March 31, 2000    through
                                                                                    March 31, 2000
                                                    ----------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES

Net Loss                                             $ (2,373,634)  $(1,862,897)  $(7,272,020)
Adjustments to reconcile net loss to
      cash used by operating activities
      Depreciation expense                                 97,507        51,143       211,882
      Amortization of service contract                  1,179,375       247,400     1,660,525
      Loss on sale of securities                                -       905,869       905,869

Changes in operating asset and liabilities:
        Accounts receivable                                28,576       (43,698)      (70,995)
        Inventories                                        24,403       (42,929)      (87,633)
        Prepaid assets                                    309,304       (71,720)      151,205
        Other assets                                     (120,421)      (10,812)     (199,917)
        Accounts payable and accrued expenses             (10,795)       52,355       132,136
                                                     -------------  ------------  ------------

Net cash used in operating activities                    (865,685)     (775,289)   (4,568,958)

CASH FLOWS FROM INVESTING ACTIVITIES

       Proceeds from sale of marketable securities        293,130        50,620       351,758
       Purchases of marketable securities                       -    (1,288,620)   (1,288,620)
       Grants for property and equipment                        -       185,000       185,000
       Purchases of property and equipment               (141,472)     (479,224)     (854,113)
                                                         ________    __________    __________
Net cash provided by (used in) investing activities       151,658    (1,532,224)   (1,605,975)

CASH FLOWS FROM FINANCING ACTIVITIES

       Issuance of common stock                         8,428,458     2,199,000    12,661,616
       Reverse acquisition                                      -             -         5,950
       Change of stock subscription receivable         (1,890,443)            -    (1,038,541)
       Proceeds from issuance of note payable                   -        72,801       640,000
       Currency translation adjustment                    (43,932)            -      (107,000)
                                                         _________    ___________    __________
Net cash provided by financing activities               6,494,083     2,271,801    12,162,025
</TABLE>

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

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
          Consolidated Statements of Cash Flows (Unaudited) - Continued


<TABLE>
<CAPTION>



<S>                                             <C>         <C>              <C>
                                               For the nine  For the nine    From Inception of
                                               months ended  months ended    August 2, 1996
                                               March 31,2000 March 31, 2000    through
                                                                              March 31, 2000
                                               __________________________________________________

Net increase in cash and cash equivalents        5,780,056   (35,712)        5,987,092
Cash and cash equivalents, Beginning of period     305,501   483,756            98,465
                                                ----------  ---------        ----------
Cash and cash equivalents, End of period         6,085,557   448,044         6,085,557
                                                ==========  =========        ==========

CASH PAID FOR:
Interest                                        $        -  $      -        $        -
Income tax                                      $        -  $      -        $        -

</TABLE>

Schedule  1:  Noncash  Investing  and  Financing  Activities

     Common  stock  valued  at  $100,000  issued  for  acquisition
     Common  stock  valued  at $80,000 issued for professional services rendered

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
                   Notes to Consolidated Financial Statements



NOTE  1  -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES

     Development  Stage  Activities

Sangui BioTech International, Inc. (a development stage company) (the "Company")
was  incorporated  in  Colorado on July 14, 1995.  The Company is engaged in the
development  of  immunodiagnostic  tests.  On  May  15, 1997, the Company issued
common  stock  for  all  the  outstanding  common  stock of Sangui BioTech, Inc.
("Sangui  USA").  Sangui USA is located in Santa Ana, California, and is devoted
to  immunodiagnostic  research,  development,  manufacturing  and  distributing,
marketing,  and  administrative  functions.  Sangui USA is the parent company of
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, and are engaged in the
development  of  artificial  oxygen  carriers  and  glucose  sensors in Germany.

     Consolidation

The  accompanying  financial  statements  present  the  historical  consolidated
financial  statements  of  Sangui  USA  from August 2, 1996 (date of inception),
through of May 15, 1997 and the consolidated financial statements of the Company
and  Sangui  USA  since  that  date.  All  significant intercompany accounts and
transactions  have  been  eliminated  upon  consolidation.


     Cash  and  Equivalents

The  Company considers all highly liquid investments with original maturities of
three  months  or  less  to  be  cash  equivalents.

     Inventories

Inventories  consist of immunodiagnostic products and related materials, and are
stated  at  the  lower of cost or market.  The cost of inventories is determined
using  the  first-in,  first-out  (FIFO)  method.

<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
              Notes to Consolidated Financial Statements -Continued


NOTE  1  -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  Continued


     Marketable  Securities

The  Company  invests  in various short-term debt securities with maturity dates
less  than  one  year.  These  securities  are  classified  as  held-to-maturity
securities  and  are  valued  at  amortized  cost which approximates fair market
value.

     Property  and  Equipment

Property  and  equipment  are  recorded  at  cost  and are depreciated using the
straight-line  method  over  expected  useful  lives  of  three  to  five years.
Expenditures  for  normal  maintenance  and  repairs  are charged to income, and
significant  improvements  are  capitalized.

     Patents

Patents  and  licenses  are  recorded  at  cost  and  are  depreciated using the
straight-line  method  over  expected  useful  lives  of  3  to  11  years.

     Revenue  Recognition

Revenues  are  recognized  when  products  are  shipped  to  the  customers.

     Research  and  Development

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

     Foreign  Currency  Translation

Assets  and  liabilities of the Company's foreign operations are translated into
U.S. dollars at period-end exchange rates.  Translation adjustments are recorded
as a separate component of stockholders' equity. Income and expense accounts are
translated  at  weighted  average  exchange  rates  for  the  period.

On  March  29,  2000, the Company entered into a foreign exchange contract. This
contract  allows  the  Company  to  manage financial exposure on fluctuations of
foreign  currency  rates  relating  to  cash  and cash equivalents maintained by
Sangui  AG  and  Gluko.

<PAGE>


                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
             Notes to Consolidated Financial Statements - Continued


NOTE  1  -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  Continued

     Grants

The  Company  receives  grants from the German government which are used to fund
research  and  development activities and the acquisition of equipment.  Revenue
from  grants  for  the  reimbursement  of  research and development expenses are
recorded as other income when the related expenses are incurred.  Grants related
to  the  acquisition  of property are recorded as a reduction of the properties'
historical  cost.

     Earnings  per  Share

Basic  earnings  per  share  are  computed  on the basis of the weighted average
number  of  common shares outstanding each period.  Fully diluted loss per share
is  not  presented  because  any  common  stock equivalents are anti-dilutive in
nature.

     Major  Customers  and  Concentration  of  Credit  Risk

The Company's six largest customers accounted for approximately 80% of sales for
the  three months and nine months ended March 31, 2000. The loss of one of these
customers  could  have  a  significant  negative  effect  on  future  sales.

The  Company  maintains  its  cash balances in various financial institutions in
accounts  that are not insured by the Federal Deposit Insurance Corporation. The
Company  has  not  experienced  any  losses  in  such accounts. The Company also
maintains  bank  accounts  in  Germany.

     Use  of  Estimates

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

     Unaudited  Financial  Statements

The  accompanying  unaudited  interim  financial  statements  include all of the
adjustments  which  are,  in  the  opinion  of  management, necessary for a fair
statement of the results for the interim period presented.  Such adjustments are
of  a  normal  recurring  nature.

<PAGE>
                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A DEVELOPMENT STAGE COMPANY)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE  1  -     SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  -  Continued

Certain  information  and  note  disclosures  normally  included  in  financial
statements  prepared in accordance with generally accepted accounting principals
have  been  omitted. The results for the three month and nine month period ended
March  31, 2000 are not necessarily indicative of the results to be obtained for
the  full  year.


NOTE  2  -     BUSINESS  ACQUISITION

On  March  30,  2000,  the  Company acquired all the outstanding common stock of
Felnam  Investments,  Inc.  ("Felnam").  The  transaction was funded through the
issuance of 100,000 shares of the Company's stock valued at $1.00 per share. The
transaction  was  accounted  for  using  the  purchase method. The excess of the
purchase  price  0f  $100,000  over  the relative fair value of zero for the net
assets  of  Felnam  has been capitalized and is being amortized over five years.
The  net  assets  and  results  of operations of Felnam were not material to the
Company's  consolidated  financial  statements. Accordingly, pro forma financial
information  has  not  been disclosed.  In conjunction with the transaction, the
Company  incurred approximately $ 180,000 of transaction costs which are charged
to  operations.


NOTE  3  -     PRIVATE  PLACEMENTS

On  July  6, 1999, the Company sold 466,485 shares of common stock for $1.15 per
share  to  EURO-AMERICAN  GmbH. Proceeds from the offering amounted to $536,458.
The  co-owners  of  EURO-AMERICAN  GmbH  also serve as directors of the Company.

On  March 29, 2000, the Company sold 8,000,000 shares of common stock for $0.964
per  share  to  EURO-AMERICAN  GmbH.  Proceeds  from  the  offering  amounted to
$5,735,800  and  subscription  receivable  of  $1,976,200.  The  co-owners  of
EURO-AMERICAN  GmbH  also  serve  as  directors  of  the  Company.


NOTE  4  -  COMMITMENTS  AND  CONTINGENCIES

     Operating  Lease

The  Company  leases  its office and laboratory facilities under three operating
leases  which  expire  through  March  31,  2003.

<PAGE>


                       SANGUI BIOTECH INTERNATIONAL, INC.
                          (A Development Stage Company)
             Notes to Consolidated Financial Statements - Continued


NOTE  4  -  COMMITMENTS  AND  CONTINGENCIES  -  Continued


Future  minimum  lease  payments  under  these  leases  at  March  31, 2000 are:

2000                               $     106,390
2001                                     147,278
2002                                     145,094
2003                                     189,217
2004                                       1,782
                                           -----
Total  minimum  lease  payments    $     625,224
                                   =============

Rent  expense for the three months ended March 31, 1999 and 2000 was $26,332 and
$35,463  respectively. Rent expense for the nine months ended March 31, 1999 and
2000  was  $88,740  and  $101,882,  respectively.

     Patent  Issues

The Company's lead product in its immunodiagnostic business is a blood test kit.
A  competitor  was  granted  a  patent  in the U.S. in August 1998 for a similar
competing  product.  The  Company  has  reserved $25,000 for the potential costs
associated  with
defending  its  product  against  potential  patent  infringement  claims.

     SEC  Investigation

Certain officers and directors of the Company have been investigated by the U.S.
Securities  and  Exchange Commission related to the timing and nature of certain
common stock transactions.  Although these officers and directors may be exposed
to  potential  fines  and  penalties  stemming  from  the  SEC's  investigation,
management  of  the  Company  believes  that  the  Company  has  no contingency.









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

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, 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,  changes  in  economic  and market
conditions,  acceptance  of  our  products  by the health care and reimbursement
communities,  health  care  legislation  and  regulation,  new  development  of
competitive  products and treatments, administrative and regulatory approval and
related  considerations,  and  other  factors  discussed in our filings with the
Securities  and  Exchange  Commission.


GENERAL


RESULTS  OF  OPERATIONS

Three  Months  Ended  March  31,  2000  and  1999:

Sales for the three month period ended March 31, 2000 were $115,329, compared to
$80,681  for  the same period in the prior year.  This increase is attributed to
an  increase in sales of the Company's CDT test kit. One of the Company's German
distributors,  DPC Biermann, discontinued its sale of the Company's CDT test kit
in  January, 2000.  Management does not believe this will have a material effect
on  overall  sales  of  the  Company.

Cost  of  sales  for  the  three month period ended March 31, 2000 were $68,753,
compared  to  $54,056  for  the  same period in the prior year. This increase is
attributed  to  an  increase  in  sales  of  the  Company's  CDT  test  kit.

Research  and  development  expenses  for the three month period ended March 31,
2000  were $225,116, compared to $201,414 for the same period in the prior year.
This  increase is attributed to an increase in research and development projects
conducted  by  the  German  subsidiaries  at  Witten,  Germany.

General  and administrative for the three month period ended March 31, 2000 were
$731,721,  compared  to  $96,320  for  the  same period in the prior year.  This
increase  is  attributed  to  the  amortization of a prepaid service contract of
$393,125 and an increase in consulting fees of $180,000 related to the Company's
issuance  of  common  stock.

Loss  on  marketable  securities  for  the three months ended March 31, 2000 was
zero,  compared to $880,138 for the same period in the prior year.  The decrease
is  attributed  to  the Company's sale of securities in the prior year at a loss
with  no  such  sale  in  the  current  year.

The  basic  loss for the three month ended March 31, 2000 was $925,770, compared
to  $1,182,496  for the same period in the prior year.  The decrease is a result
of  increased  sales,  increased  general  and  administrative expenses, and the
decreased  loss  on  marketable  securities  described  above.



Nine  Months  Ended  March  31,  2000  and  1999:

Sales  for the nine month period ended March 31, 2000 were $330,786, compared to
$151,402  for the same period in the prior year.  This increase is attributed to
an  increase in sales of the Company's CDT test kit. One of the Company's German
distributors,  DPC Biermann, discontinued its sale of the Company's CDT test kit
in  January, 2000.  Management does not believe this will have a material effect
on  overall  sales  of  the  Company.

Cost  of  sales  for  the  nine month period ended March 31, 2000 were $206,645,
compared  to  $102,038  for the same period in the prior year.  This increase is
attributed  to  an  increase  in  sales  of  the  Company's  CDT  test  kit.

Research and development expenses for the nine month period ended March 31, 2000
were  $774,902, compared to $681,687 for the same period in the prior year. This
increase  is  attributed  to  an  increase  in research and development projects
conducted  by  the  German  subsidiaries  at  Witten,  Germany.

General  and  administrative  expenses for the nine month period ended March 31,
2000  were  $1,859,527,  compared  to  $310,453 for the same period in the prior
year.  This  increase  is  primarily attributed to the amortization of a prepaid
service  contract  of  $1,179,375 and an increase in consulting fees of $180,000
related  to  the  Company's  issuance  of  common  stock.

Loss  on marketable securities for the nine month ended March 31, 2000 was zero,
compared  to  $905,869  for  the  same period in the prior year. The decrease is
attributed  to the Company's sale of securities in the prior year at a loss with
no  such  sale  in  the  current  year.

The basic loss for the nine months ended March 31, 2000 was $2,373,634, compared
to  $1,862,897  for the same period in the prior year.  The increase is a result
of  increased  sales,  increased  general  and  administrative expenses, and the
decreased  loss  on  marketable  securities  described  above.


LIQUIDITY  AND  CAPITAL  RESOURCES

During  the  nine  months  ended  March  31,  2000,  the  Company generated cash
primarily  by  issuance  of  stock  and  sales  of  its  diagnostic  products.

The  Company's  principal  sources  of  capital  have  been  as  follows:

(i)     On  July  6, 1999, the Company issued 466,485 shares of common stock for
$536,458  at  $1.15  per  share.
(ii)     On  March 24, 2000, the Company issued 8,000,000 shares of common stock
for  $5,735,800  and subscriptions receivable of $1,926,200 at $0.964 per share.

The  Company  had  cash and cash equivalents of $6,085,557 and $305,501 at March
31,  2000  and June 30, 1999, respectively. The increase of $5,780,056 primarily
reflects  the  issuance  of  common  stock,  offset  by the funding of operating
activities.

The  Company's  continuing  losses  from  operations  could impact the Company's
capital  resources.  Management  believes that based on funds at March 31, 2000,
operations  can  continue  at  least  through  December  2001.


NEW  ACCOUNTING  PRONOUNCEMENT

The  Company  will implement the provisions of Statement of Financial Accounting
Standards  No.  133,  "Accounting  for  Derivative  Instruments  and  Hedging
Activities",  as amended by Statement of Financial Accounting Standards No. 137,
in  fiscal year 2001, for which the Company is presently assessing its impact on
the  consolidated  financial  statements,  if  any.


YEAR  2000  COMPLIANCE

To  date,  the  Company  has not encountered any significant effects of the Year
2000  problem,  either internally or with third parties. This does not guarantee
that  problems  will  not  occur  in  the  future or have not yet been detected.



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

The  Company  may  from  time  to  time be involved in various claims, lawsuits,
disputes with third parties, actions involving allegations of discrimination, or
breach  of  contract  actions  incidental to the operation of its business.  The
Company is not currently involved in any such litigation which it believes could
have  a  materially  adverse  effect  on  its  financial condition or results of
operations.

ITEM  2.  CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS

     (a)  Not  applicable

     (b)  Not  applicable

     (c)  On  March  24,  2000  the  Company accepted subscription for 8,000,000
shares  of  its common  stock  at  U.S.  $  0.964  per  share  by  Euro-American
Beteiligungsvermittlungsges.  mbH, a German brokerage company. On March 30, 2000
the Company issued the 8,000,000 shares to Euro-American. On March 29, 2000, the
Company  received  U.S.  $  5,735,800  in  exchange  for  the issued stock. Such
proceeds  are  used  and  will  be  used  (i) to enable the Company's subsidiary
GlukoMediTech AG to prove its ability to cover 60% of the projected costs of the
research  and development of the Company's long-term implantable glucose sensor,
so  that  the  subsidiary  qualifies  for  reimbursement out of the grant of the
German state North-Rhine-Westphalia according to the terms and conditions of the
grant  as  notified  to the subsidiary in September 1999; (ii) to partially fund
the  research  and  development  of  the Company's artificial oxygen carrier and
other  projects  of  the  Company's subsidiary Sangui BioTech AG; (iii) to cover
near-term  general  and  administrative  expenses  of  the  Company  and  its
subsidiaries.

     On  March  29, 2000 the Company entered into an exchange agreement with the
shareholders  of  Felnam  Investment,  Inc.  ("Felnam")  to  acquire 100% of the
outstanding  shares  of  Felnam.  In  exchange  the Company issued the aggregate
amount  of  100,000  shares of its common stock to the shareholders of Felnam on
March  31,  2000.

     On  March  31, 2000 the Company issued 80,000 shares of its common stock to
Cales  Investments,  Inc. to compensate for services rendered in connection with
the  acquisition  of  Felnam.

     (d)  Not  applicable

ITEM  3.  DEFAULTS  UPON  SENIOR  SECURITIES

     None

ITEM  4.  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

     No  matters  were  submitted  to the security holders for a vote during the
period  covered  by  this  report.

ITEM  5.  OTHER  INFORMATION

     None

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

(A)  EXHIBITS

     None

(B)  REPORTS  ON  FROM  8-K

     The  registrant  filed  a Form 8-K for the acquisition by the registrant of
Felnam  Investments,  Inc.  in  accordance with Items 1, 2, 7 and 8 of Form 8-K.
The  registrant  filed  Consolidated  Financial  Statements  for  Sangui Biotech
International,  Inc.  for  the  fiscal  years  ended December 31, 1998 and 1997,
Consolidated Financial Statements for Sangui Biotech International, Inc. for the
six  months  ended  June  30, 1999, Consolidated Financial Statements for Sangui
Biotech  International,  Inc.  for  the  six  months  ended  December  31,  1999
(unaudited)  and  Consolidated Pro Forma Financial Statements for Sangui Biotech
International,  Inc. combined with Felnam Investments, Inc. at December 31, 1999
(unaudited).

     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  11,  1999