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, 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 November 7, 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

                                                                        Page
                                                                        ----

Item  1.  Financial  Statements

   Consolidated Balance Sheet at September 30, 2001 (Unaudited)           2

   Consolidated Statements of Operations and Comprehensive Loss
     (Unaudited) Three months ended September 30, 2001 and 2000           3

   Consolidated Statements of Cash Flows (Unaudited)
     Three months ended September 30, 2001 and 2000                       4

   Notes to Consolidated Financial Statements                             5

Item 2.  Management's Discussion and Analysis of Interim Financial
   Condition and Results of Operations                                    8

                          PART II. OTHER INFORMATION

Item  1.  Legal Proceedings                                              10

Item  2.  Changes in Securities                                          10

Item  3.  Defaults Upon Senior Securities                                10

Item  4.  Submission of Matters to a Vote of Security Holders            10

Item  5.  Other Information                                              10

Item  6.  Exhibits and Reports on Form 8-K                               10

                                        1
<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                           CONSOLIDATED BALANCE SHEET

                                     ASSETS
                                     ------

<TABLE>
<CAPTION>
<S>                                                          <C>
                                                         SEPTEMBER 30
                                                                  2001
                                                            (UNAUDITED)
                                                         --------------

Current assets
  Cash and cash equivalents . . . . . . . . . . . . . .  $   1,390,374
  Available for sale securities . . . . . . . . . . . .      4,074,738
  Accounts receivable . . . . . . . . . . . . . . . . .         73,158
  Inventories . . . . . . . . . . . . . . . . . . . . .        112,744
  Prepaid expenses and other assets . . . . . . . . . .        420,478
                                                         --------------
       Total current assets . . . . . . . . . . . . . .      6,071,492

Property and equipment-net. . . . . . . . . . . . . . .        502,529

Patents-net . . . . . . . . . . . . . . . . . . . . . .         41,849

Total assets. . . . . . . . . . . . . . . . . . . . . .  $   6,615,870
                                                         ==============



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

Current liabilities
  Accounts payable and accrued expenses . . . . . . . .  $     354,752

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.     18,305,881

  Additional paid-in capital. . . . . . . . . . . . . .      1,250,000
  Prepaid consulting fees . . . . . . . . . . . . . . .       (551,169)
  Accumulated other comprehensive income. . . . . . . .         11,555
  Accumulated deficit . . . . . . . . . . . . . . . . .    (12,755,149)
                                                         --------------

  Total stockholders' equity. . . . . . . . . . . . . .      6,261,118

Total liabilities and stockholders' equity. . . . . . .  $   6,615,870
                                                         ==============
</TABLE>

                                        2
<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)
                                                         --------------------
                                                               2001          2000
                                                --------------------  ------------


Sales. . . . . . . . . . . . . . . . . . . . .  $           101,241   $   122,789

Cost of sales. . . . . . . . . . . . . . . . .               81,201        90,617
                                                --------------------  ------------

Gross profit . . . . . . . . . . . . . . . . .               20,040        32,172

Operating expenses
Research and development . . . . . . . . . . .              291,987       184,736
General and administrative . . . . . . . . . .              508,660       321,689
Compensation expense related to stock options.              250,000             -
Depreciation and amortization. . . . . . . . .               38,127        31,422
Amortization of prepaid consulting fees. . . .              110,000       113,831
                                                --------------------  ------------

Total operating expenses . . . . . . . . . . .            1,198,774       651,678

Loss from operations . . . . . . . . . . . . .           (1,178,734)     (619,506)

Other income
Interest income. . . . . . . . . . . . . . . .               43,992        70,733
Other income . . . . . . . . . . . . . . . . .               25,719             -
                                                --------------------  ------------
Total Other Income . . . . . . . . . . . . . .               69,711        70,733

Net loss . . . . . . . . . . . . . . . . . . .           (1,109,023)     (548,773)

Other comprehensive income (loss)
Foreign currency translation adjustments . . .              210,175      (145,197)
Unrealized gain on marketable securities . . .              157,750             -
                                                --------------------  ------------

Comprehensive loss . . . . . . . . . . . . . .  $          (741,098)  $  (693,970)
                                                ====================  ============

Net loss available to common
shareholder per common share
Net loss . . . . . . . . . . . . . . . . . . .  $             (0.03)  $     (0.01)
                                                ====================  ============

Basic and diluted weighted average
number of common shares outstanding. . . . . .           40,514,363    40,514,303
                                                ====================  ============
</TABLE>

                                        3
<PAGE>

                       SANGUI BIOTECH INTERNATIONAL, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
<S>                                                                     <C>                   <C>
                                                                                         FOR THE
                                                                                   THREE MONTHS ENDED
                                                                                      SEPTEMBER 30,
                                                                                       (UNAUDITED)
                                                                                   --------------------
                                                                                       2001         2000
                                                                        --------------------  -----------

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $        (1,109,023)  $ (548,773)
Adjustments to reconcile net loss to cash used by operating activities
  Compensation expense related to stock options. . . . . . . . . . . .              250,000            -
  Depreciation and amortization. . . . . . . . . . . . . . . . . . . .               38,127       31,422
  Amortization of prepaid consulting fees. . . . . . . . . . . . . . .              110,000      113,831

Changes in operating asset and liabilities:
  Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . .               55,770      143,809
  Inventories. . . . . . . . . . . . . . . . . . . . . . . . . . . . .              (42,723)       5,204
  Prepaid expenses and other assets. . . . . . . . . . . . . . . . . .              (57,742)      42,515
  Accounts payable and accrued expenses. . . . . . . . . . . . . . . .               66,135      (30,957)
                                                                        --------------------  -----------

Net cash used in operating activities. . . . . . . . . . . . . . . . .             (689,456)    (242,949)
                                                                        --------------------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES:

  Increase in marketable securities. . . . . . . . . . . . . . . . . .           (3,226,969)           -
  Maturities of marketable securities. . . . . . . . . . . . . . . . .            2,773,490            -
  Purchase of property and equipment . . . . . . . . . . . . . . . . .              (31,450)           -
  Proceeds from sale of equipment. . . . . . . . . . . . . . . . . . .                    -       22,222


Net cash (used in) provided by investing activities. . . . . . . . . .             (484,929)      22,222
                                                                        --------------------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Collection of stock subscription receivable. . . . . . . . . . . . .                    -       46,931
                                                                        --------------------  -----------

Effect of exchange rate changes. . . . . . . . . . . . . . . . . . . .              210,175     (145,197)
                                                                        --------------------  -----------

Net decrease in cash and cash equivalents. . . . . . . . . . . . . . .             (964,210)    (318,993)

Cash and cash equivalents, beginning of period . . . . . . . . . . . .            2,354,584    7,989,258
                                                                        --------------------  -----------

Cash and cash equivalents, ending of period. . . . . . . . . . . . . .  $         1,390,374   $7,670,265
                                                                        ====================  ===========

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

                                        4
<PAGE>


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


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

The  accompanying  consolidated  financial statements have been prepared without
audit  in accordance with accounting principles generally accepted in the United
States  for  interim  financial  information  and  with the instructions to Form
10-QSB  and  Item  301  of  Regulation  S-B.  Certain  information  and footnote
disclosures normally included in the financial statements prepared in accordance
with  accounting  principles  generally  accepted in the United States have been
condensed  or  omitted  pursuant  to  such rules and regulations.  The unaudited
consolidated  financial  statements  and  notes  should,  therefore,  be read in
conjunction  with  the  financial  statements and notes thereto in the Company's
Form 10-KSB for the year ended June 30, 2001.  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,  2001  are  not
necessarily indicative of the results that may be expected for the entire fiscal
year  ending  June  30,  2002.


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

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

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

The Company's wholly owned subsidiary Sangui BioTech, Inc. ("SBT"), incorporated
in  Delaware  in  1996, is located in Santa Ana, California. SBT manufactures in
vitro  immunodiagnostic  blood  test  kits that are primarily sold in the United
States  and  Europe.  The  Company  has  three  subsidiaries located outside the
United  States, Sangui BioTech AG ("Sangui AG"), GlukoMediTech, AG ("Gluko AG"),
and  Sangui  BioTech  PTE  Ltd.  ("Sangui  Singapore").

Sangui AG, incorporated in Mainz, Germany in 1995, is engaged in the development
of  artificial  oxygen  carriers  (blood  substitute  and additives).  Gluko AG,
incorporated in Mainz, Germany in 1996, is engaged in the development of glucose
implant  sensors.  Sangui  Singapore,  incorporated  in  Singapore in 1999, is a
regional  office  for  the  Company  and  carries  out  research and development
projects  in  conjunction  with  Sangui  AG  and  Gluko  AG.

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.

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

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

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

The  Company's 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 Sangui AG and
Gluko  AG,  are deemed as medical devices or biologics, and as such are governed
by  the  Federal Food and Drug and Cosmetics Act and by the regulations of state
agencies  and  various  foreign  government  agencies.  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, will be
subject  to  more  stringent  regulatory  requirements, because they are in vivo
products  for  humans.  The  Company  and its subsidiaries have no experience in
obtaining  regulatory  clearance  on  these  types  of products.  Therefore, the
Company will be subject to the risks of delays in obtaining or failing to obtain
regulatory  clearance.

The  Company's  revenues  from  product  sales derived from its immunodiagnostic
blood  test  kits  are small.  However, management believes its current cash and
highly  liquid  marketable  securities  totaling  approximately  $5.5 million at
September  30, 2001, are sufficient to fund the Company's operations and working
capital  requirements  at  least  through  June  30,  2002.

Cash  and  cash  equivalents
----------------------------

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

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

Marketable  securities  are classified as available-for-sale, as defined by SFAS
No.  115,  "Accounting  for  Certain  Investments  in  Debt  and  Equity
Securities."   Unrealized  gains  and  losses are excluded from earnings and are
reported  as  a  separate component of other comprehensive loss in shareholders'
equity.  Realized  gains  and  losses  are included in income and are determined
based on the specific identification of the securities bought and sold (see Note
3).


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

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

In  December  1999,  the  Securities  and  Exchange  Commission  released  Staff
Accounting  Bulletin  101  ("SAB  101"),  "Revenue  Recognition in the Financial
Statements,"  which  provides  guidance  on  the  recognition, presentation, and
disclosure  of  revenue in the financial statements and was effective October 1,
2000.  The  adoption  of SAB 101 did not have a material impact on the Company's
financial  statements.

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.

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

The  Company accounts for stock-based compensation issued to employees using the
intrinsic  value  based  method  as  prescribed  by  Accounting Principles Board
Opinion  No.  25  "Accounting for Stock  Issued to Employees" ("APB 25").  Under
the  intrinsic  value  based method, compensation  is the excess, if any, of the
fair  value  of the stock at the grant date  or  other measurement date over the
amount  an employee must pay to acquire the  stock.  Compensation,  if  any,  is
recognized over the applicable service period,  which  is  usually  the  vesting
period.  The  FASB  has  issued  SFAS  No.  123  "Accounting  for  Stock-Based
Compensation."  This  standard,  if  fully  adopted,  changes  the  method  of
accounting  for  all  stock-based compensation to the fair value  based  method.
For  stock  options  and  warrants,  fair  value is determined using  an  option
pricing  model  that takes into account the stock price at the grant  date,  the
exercise price, the expected life of the option or warrant and the  annual  rate
of  quarterly  dividends.   Compensation  expense,  if  any, is recognized  over
the  applicable  service  period,  which  is  usually  the  vesting  period.

                                        5
<PAGE>

The  adoption  of  the  accounting  methodology of SFAS No. 123 for employees is
optional  and  the  Company  has  elected to continue accounting for stock-based
compensation  issued  to employees using APB 25; however, pro forma disclosures,
as  if the Company adopted the cost recognition requirements under SFAS No. 123,
are  required  to  be  presented  (see  Note  3).

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 Accounting Principles Board Opinion No. 25
(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.

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

The  Company  applies Statement of Financial Accounting Standards (SFAS) No. 128
"Earnings  Per  Share"  which  requires  dual presentation of net income (loss):
Basic and Diluted.  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.  No shares were diluted as of September 30, 2001 and 2000.
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 and Singapore 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
gain  (losses)  of  approximately  $210,000  and $(145,000) for the three months
ended  September  30,  2001  and  2000,  respectively.

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

The Company applies 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  securities  classified  as
available-for-sale  and  are  recorded  as  components  of stockholders' equity.

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

The  Company  applies SFAS No. 131, "Disclosures about Segments of an Enterprise
and Related Information".  SFAS No. 131 requires companies to report information
about  operating segments of their business in their annual financial statements
and  requires  them  to  report  selected segment information in their quarterly
reports  issued to shareholders.  It also requires entity-wide disclosures about
the products and services an entity provides, the material countries in which it
holds  assets  and  reports  revenues  and  its  major customers.  (See Note 5).

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

The  Company  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.

                                        6
<PAGE>

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

In  July  2001,  the Financial Accounting Standards Board (FASB) issued SFAS No.
141,  "Business  Combinations",  which  is  effective  for business combinations
initiated  after  June 30, 2001. SFAS No. 141 eliminates the pooling of interest
method  of  accounting  for business combinations and requires that all business
combinations  occurring  on  or  after  July 1, 2001 are accounted for under the
purchase method.  The adoption of SFAS No. 141 did not have a material impact on
the  Company's  financial  statements.

In  July  2001,  the  FASB  issued  SFAS No. 142, "Goodwill and Other Intangible
Assets",  which is effective for fiscal years beginning after December 15, 2001.
SFAS  No.  142  requires that goodwill no longer be amortized. Instead, goodwill
will  be tested for impairment and written down if its fair value declines below
its carrying amount. Goodwill amortization ceases as of the date of the required
adoption  of  this standard that will be January 1, 2002.   The Company does not
expect  SFAS  No.  142  to  have  a material effect on its financial statements.

In  July  2001,  the  FASB issued SFAS No. 143, "Accounting for Asset Retirement
Obligations".  SFAS  No.  143  addresses  financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and the
associated  asset  retirement  costs and is effective for fiscal years beginning
after June 15, 2002. The Company does not expect SFAS No. 143 to have a material
impact  on  its  financial  statements.

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


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

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

NOTE  3  -  AVAILABLE  FOR  SALE  SECURITIES

Available  for  sale  securities consist of the following at September 30, 2001:

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

                                     Cost        Fair Market Value   Unrealized Gain

Corporate bonds due within one year  $1,314,600  $        1,409,216  $         94,616
Mutual Funds. . . . . . . . . . . .   2,602,388           2,665,522            63,134
                                     ----------  ------------------  ----------------
                                     $3,916,988  $        4,074,738  $        157,750
                                     ==========  ------------------  ----------------

</TABLE>

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

Per  APB  No.  25,  "Accounting  for Stock Issued to Employees", the Company has
recognized  compensation  expense for previously issued options in the amount of
$250,000  in the accompanying statement of operations for the three months ended
September  30,  2001.


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

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

<TABLE>
<CAPTION>
<S>                                <C>         <C>
                                         2001      2000
                                   ----------  --------

Net sales:
---------------------------------
Sangui USA. . . . . . . . . . . .  $  101,241  $122,789
Sangui BioTech AG . . . . . . . .           -         -
GlukoMediTech,AG. . . . . . . . .           -         -
Sangui BioTech PTE Ltd, Singapore           -         -
                                   $  101,241  $122,789
                                   ==========  ========


Net loss:
---------------------------------
Sangui USA. . . . . . . . . . . .  $  632,694  $244,575
Sangui BioTech AG . . . . . . . .     206,788   172,492
GlukoMediTech,AG. . . . . . . . .     200,260   107,592
Sangui BioTech PTE Ltd, Singapore      69,281    24,114
                                   ----------  --------
                                   $1,109,023  $548,773
                                   ==========  ========


Depreciation and amortization
---------------------------------
Sangui USA. . . . . . . . . . . .  $    3,595  $  2,959
Sangui BioTech AG . . . . . . . .      24,686    20,904
GlukoMediTech,AG. . . . . . . . .       9,846     7,559
Sangui BioTech PTE Ltd, Singapore           -         -
                                   $   38,127  $ 31,422
                                   ==========  ========

Identifiable assets
---------------------------------
Sangui USA. . . . . . . . . . . .  $  929,859
Sangui BioTech AG . . . . . . . .   2,619,783
GlukoMediTech,AG. . . . . . . . .   2,809,603
Sangui BioTech PTE Ltd, Singapore     256,625
                                   $6,615,870
                                   ==========
</TABLE>



                                        7
<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.

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  actively  building  its  management  and  support  team.

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

The  Company's current assets decreased approximately $309,000, or 5%, from June
30,  2001  to  approximately  $6,071,000 at September 30, 2001.  The decrease is
primarily  attributable  to  a  decrease  in  cash  and  cash  equivalents  of
approximately  $965,000,  an  increase  in  available  for  sale  securities  of
approximately  $611,000,  and  an  increase  in  prepaid  and  other  assets  of
approximately  $58,000.  The  decrease  in  cash includes approximately $635,000
transferred  to  money  market  mutual  funds  classified  as available for sale
securities.  The  balance  of  the  decrease  in  cash  and  cash equivalents of
approximately  $330,000 results from funding the current quarter's operations of
the  Company.

The  Company's  property  and  equipment decreased approximately $10,000, or 2%,
from  June  30,  2001  to  approximately  $503,000  at September 30, 2001 due to
increases  of approximately $31,000 from the purchase of equipment and decreases
of  approximately  $38,000  due  to  depreciation.

The  Company's  accounts  payable  increased approximately $66,000, or 23%, from
June  30, 2001 to approximately $355,000 at September 30, 2001, primarily due to
increased accruals for professional fees incurred in the current quarter related
to  the  lawsuit  against  a  former  director  of  the  Company.

The  Company funded its operations primarily through its existing cash reserves.
The  Company's  stockholder's  equity  decreased  approximately  $381,000.  The
primary  decrease  is  caused  by  the  Company's  current  period  net  loss of
approximately  $1,109,000.  Increases  include a reduction in prepaid consulting
fees  of $110,000 due to amortization, an increase in additional paid-in capital
of  $250,000  due  to  the  amortization  of the fair value of previously issued
options,  and  an  increase  in  accumulated  other  comprehensive  income  of
approximately  $368,000  due  to  foreign  currency  translation adjustments and
unrealized  gain  on  marketable  securities.


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

Three  Months  Ended  September  30,  2001  and  2000:

Sangui  BioTech
---------------
SALES.  Sales decreased 18% to approximately $101,000 in 2001 from approximately
$123,000  in  2000.  This  decrease  of  approximately  $22,000 is attributed to
unusually  large orders placed by the Company's German distributor at the end of
the  prior quarter and a related decrease in orders from that distributor in the
current  quarter.

COST  OF  SALES.  Cost  of  sales decreased 10% to approximately $81,000 in 2001
from  approximately  $91,000  in  2000.  This  decrease of $10,000 is related to
reduced costs associated with the decrease in sales.  The Company's gross margin
decreased  to  20% in 2001 from 26% in 2000 primarily due to decrease in economy
of scale.  Management believes that the gross margin should be improved as sales
increase  to  previous  quarters  levels

GENERAL  AND ADMINISTRATIVE.   General and administrative expenses, exclusive of
amortization of prepaid consulting fees of approximately $110,000, increased 59%
to  approximately  $296,000  in  2001 from approximately $186,000 in 2000.  This
increase  of  $110,000  is  related  to legal costs incurred by the Company in a
lawsuit  against  a  former  director  of  the  Company.

COMPENSATION  EXPENSE RELATED TO STOCK OPTIONS.  Compensation expense related to
stock  options  was  $250,000  in 2001, 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  in  2000.

AMORTIZATION  OF  PREPAID  CONSULTING  FEES.  Amortization of prepaid consulting
fees  was  approximately  $110,000  in  2001  and  $114,000  in  2000.

Sangui  AG
----------
RESEARCH  AND  DEVELOPMENT.  Research  and development expenses increased 27% to
approximately  $116,000  in  2001  from  approximately  $91,000  in 2000, due to
increased  research  and  development  activities.

GENERAL  AND  ADMINISTRATIVE.  General and administrative expenses increased 46%
to  approximately  $99,000  in  2001  from  approximately $68,000 in 2000.  This
increase  of  $31,000  is  attributed  to  increases  in  staffing and operating
expenses.

Gluko  AG
---------
RESEARCH  AND  DEVELOPMENT.  Research  and development expenses increased 89% to
approximately  $176,000  in  2001  from  approximately  $94,000  in 2000, due to
increased  research  and  development  activities.

GENERAL AND ADMINISTRATIVE.  General and administrative expenses decreased 6% to
approximately  $44,000  in  2001  from  approximately  $47,000  in  2000.

Sangui  Singapore
-----------------
GENERAL  AND ADIMISTRATIVE.   General and administrative expenses increased 229%
to  approximately  $69,000  in  2001  from  approximately $21,000 in 2000 and is
attributed to full time operations beginning during the most recent fiscal year.

Sangui  Biotech  International,  Inc.
-------------------------------------
NET  LOSS.  The Company's consolidated net loss was approximately $1,109,000, or
approximately  three  cents per common share, in 2001, compared to approximately
$549,000, or one cent per common share, in 2000.  This increase in net loss is a
result  primarily of increased research and development expenses and an increase
in  compensation  expense  related  to  stock  options,  offset by a decrease in
amortization  of  prepaid  consulting  fees.

                                        8
<PAGE>

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

For  the  three-months  ended  September  30,  2001,  net cash used in operating
activities  increased  to  approximately $689,000 from approximately $243,000 in
the  corresponding  period  in  2000,  primarily  related  to an increase in the
Company's  consolidated  net  loss.

For  the  three-months  ended  September  30,  2001,  net cash used in investing
activities was approximately $643,000 compared to net cash provided by investing
activities  of  approximately  $22,000 in the corresponding period in 2000.  The
principal  decrease  in cash is due to the net increase of marketable securities
of  approximately  $611,000.

For  the  three-months  ended  September 30, 2001, there was no cash provided by
financing  activities  compared to approximately $47,000 of net cash provided by
financing  activities  of  in the corresponding period in 2000 received from the
collection of stock subscriptions receivable.  There were no stock subscriptions
receivable  in  2001.

Working  capital  was approximately $5,716,000 at September 30, 2001, a decrease
of  approximately $375,000 from June 30, 2001.  For the three-month period ended
September  30, 2001, cash and cash equivalents and available for sale securities
declined approximately $353,000, or 6%, to approximately $5,465,000 at September
30,  2001  from  approximately  $5,818,000  at  June  30,  2001.

A  substantial portion of the Company's total assets consists of cash and highly
liquid  marketable  securities  classified  as  available  for  sale securities.
Marketable securities at September 30, 2001 includes approximately $1,409,000 in
investment  grade  bonds  of German companies generally with original maturities
less  than  six  months  which are generally held to maturity, and approximately
$2,666,000  of investments in money market mutual funds which are convertible to
cash  daily.  The  Company's investments in bonds have generally been held until
maturity.  The  highly  liquid  nature of these assets provides the Company with
flexibility  in financing and managing its business.  For the three-months ended
September  30,  2001,  realized  gains  and  losses  on the Company's marketable
securities  were  negligible,  and unrealized gains were approximately $154,000.

The  Company  intends  to intensify its development efforts during the remaining
quarters  of the current fiscal year ending June 30, 2002.  The Company believes
that  its  available cash will be sufficient to satisfy its requirements through
June 30, 2002.  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.


                                        9
<PAGE>

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


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

 On July 26, 2001, the Company commenced a lawsuit in the United States District
Court  for  the  District  of  Colorado  against  Helmut Kappes.  Mr. Kappes was
serving  as  a  director  of  the  Company  when  the lawsuit was filed.  In the
lawsuit,  the  Company alleges that Mr. Kappes was engaged in conduct related to
the  Company's  affairs  that  is  fraudulent,  dishonest and gross abuse of his
authority  or  discretion  as  a  director  and  that  his  removal and ban from
re-election  from the Company's Board of Directors would be in the best interest
of  the Company.  Among other things, the Company alleges that Mr. Kappes caused
the  Company  to  enter  into  a contract with Axel Kleinkorres without adequate
disclosure  of Mr. Kappes's conflicts of interest and that the remuneration paid
to  Mr.  Kleinkorres was excessive.  The Company also alleges that Mr. Kappes is
engaged  in  an improper exchange offer campaign involving the Company's shares.
The  Court  issued  a Temporary Restraining Order suspending Mr. Kappes from the
Board  of  Directors of the Company and restraining Mr. Kappes from pursuing the
exchange  offer.  The  Temporary Restraining Order has expired.  The Company has
filed  a  Motion  for  Preliminary  Injunction  which  is  pending.
The  Company  seeks  the removal and ban from re-election of Mr. Kappes from the
Company's  Board  of  Directors,  an  injunction against from Mr. Kappes and his
affiliates  from  exchanging the shares of the Company's common stock for shares
of  an entity in which Mr. Kappes has a financial interest, compensatory damages
in  an  amount to be determined and costs of the action.  Mr. Kappes has filed a
motion  to dismiss the lawsuit in which he asserts that the Court in Colorado is
an  inconvenient  forum  for  resolution  of the disputes.  The Company does not
agree with the position of Mr. Kappes and has filed an opposition brief with the
Court.  A  hearing  date  has  not  been scheduled for argument of the motion to
dismiss.  In  October  2001,  Mr.  Kappes  resigned  from the Company's Board of
Directors.


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

(b)     Reports  on  Form  8-K.
     During  the quarter ended September 30, 2001, the Company filed a Report on
Form 8-K on July 30, 2001 reporting the Company's lawsuit against Helmut Kappes,
who  was  then  a  director  of  the  Company.
     The  Company  also filed a Report on Form 8-K on October 10, 2001 reporting
the  resignation  of  Helmut  Kappes  as  a  director  of  the  Company.



                                        10
<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/ Detlev Baron von Linsingen
            Detlev Baron von Linsingen
            Chief Financial Officer, Treasurer


Date:     November 13, 2001