SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

     (Mark  One)
[  X  ]     QUARTERLY  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE  ACT  OF  1934  FOR  THE  QUARTERLY  PERIOD  ENDED  SEPTEMBER 30,  2000
[     ]     TRANSITION REPORT  PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES
EXCHANGE  ACT  OF  1934

                    Commission  file  number  0-29233

                       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 February 13, 2002
-----------------------------------------      --------------------------------
  Common  Stock,  no par  value                           40,514,363


Transitional  Small  Business  Disclosure  Format
(Check  one);

Yes  [    ]  No  [  X  ]



<PAGE>
INDEX


                       SANGUI BIOTECH INTERNATIONAL, INC.

                       PART  I.  FINANCIAL  INFORMATION

Item  1.  Financial  Statements

        Consolidated Balance Sheet at December 31, 2001 (Unaudited)

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

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

Item 2.  Management's Discussion and Analysis of Interim 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>
<TABLE>
<CAPTION>



                       SANGUI BIOTECH INTERNATIONAL, INC.
                           CONSOLIDATED BALANCE SHEET


                                     ASSETS



                                                          DECEMBER 31
                                                             2001
                                                          (UNAUDITED)
                                                         -------------
<S>                                                      <C>

Current assets
  Cash and cash equivalents                              $  1,099,632
  Available for sale securities                             3,461,937
  Accounts receivable                                         106,833
  Inventories                                                 102,937
  Prepaid expenses and other assets                           273,716
                                                         -------------
       Total current assets                                 5,045,055

Property and equipment-net                                    454,829

Patents-net                                                    36,171
                                                         -------------

Total assets                                             $  5,536,055
                                                         =============



LIABILITIES & STOCKHOLDERS' EQUITY

Current liabilities
  Accounts payable and accrued expenses                  $    183,127

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                                1,500,000
  Prepaid consulting fees                                    (441,169)
  Accumulated other comprehensive loss                        (20,574)
  Accumulated deficit                                     (13,991,210)
                                                         -------------

  Total stockholders' equity                                5,352,928
                                                         -------------

Total liabilities and stockholders' equity               $  5,536,055
                                                         =============

</TABLE>


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

<PAGE>

<TABLE>
<CAPTION>

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

                                                             FOR THE                    FOR THE
                                                       THREE MONTHS ENDED          SIX MONTHS ENDED
                                                           DECEMBER 31                DECEMBER 31
                                                           (UNAUDITED)                (UNAUDITED)
                                                  ------------  ------------  ------------  ------------
                                                       2001          2000          2001          2000
                                                  ------------  ------------  ------------  ------------
<S>                                               <C>           <C>           <C>           <C>
Sales                                             $   141,012   $   138,082   $   242,253   $   262,983

Cost of sales                                          89,218        83,205       170,419       173,822
                                                  ------------  ------------  ------------  ------------

Gross profit                                           51,794        54,877        71,834        89,161
                                                  ------------  ------------  ------------  ------------

Operating expenses
Research and development                              244,204       345,556       536,333       494,304
General and administrative                            700,265       721,871     1,218,756       897,807
Compensation expense related to stock options         250,000       500,000       500,000       500,000
Depreciation and amortization                          39,062        34,390        77,187        65,052
Amortization of prepaid consulting fees               110,000       110,000       220,000       223,831
                                                  ------------  ------------  ------------  ------------

Total operating expenses                            1,343,531     1,711,817     2,552,276     2,180,994
                                                  ------------  ------------  ------------  ------------

Loss from operations                               (1,291,737)   (1,656,940)   (2,480,442)   (2,091,833)
                                                  ------------  ------------  ------------  ------------

Other income
Interest income                                        16,104        74,734        60,174       145,597
Other income                                           39,572             -        68,051             -
                                                  ------------  ------------  ------------  ------------
Total other income                                     55,676        74,734       128,225       145,597
                                                  ------------  ------------  ------------  ------------

Net loss                                           (1,236,061)   (1,582,206)   (2,352,217)   (1,946,236)

Other comprehensive income (loss)
Foreign currency translation adjustments              (20,876)      308,906       196,460       (21,034)
Unrealized gain (loss) on marketable securities       (11,253)            -       146,469             -
                                                  ------------  ------------  ------------  ------------

Comprehensive loss                                $(1,268,190)  $(1,273,300)  $(2,009,288)  $(1,967,270)
                                                  ============  ============  ============  ============

Net loss available to common
shareholders per common share
Net loss                                          $     (0.03)  $     (0.04)  $     (0.06)  $     (0.05)
                                                  ============  ============  ============  ============

Basic and diluted weighted average
number of common shares outstanding                40,514,363    40,514,303    40,514,363    40,514,303
                                                  ============  ============  ============  ============

</TABLE>


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

<PAGE>

<TABLE>
<CAPTION>

                                SANGUI BIOTECH INTERNATIONAL, INC.
                               CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                                                FOR THE
                                                                            SIX MONTHS ENDED
                                                                               DECEMBER 31,
                                                                               (UNAUDITED)
                                                                            2001          2000
<S>                                                                     <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                $(2,352,217)  $(1,946,236)
Adjustments to reconcile net loss to cash used by operating activities
  Compensation expense related to stock options                             500,000       500,000
  Depreciation and amortization                                              77,187        65,052
  Amortization of prepaid consulting fees                                   220,000       223,831
Changes in operating assets and liabilities:
  Accounts receivable                                                        22,095       (57,570)
  Grants receivable                                                               -       176,844
  Inventories                                                               (32,916)       12,960
  Prepaid expenses and other assets                                          89,020       (80,380)
  Accounts payable and accrued expenses                                    (105,490)       74,301
                                                                        ------------  ------------

Net cash used in operating activities                                    (1,582,321)   (1,031,198)
                                                                        ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in marketable securities                                        (4,212,845)            -
Maturities of marketable securities                                       4,360,886             -
Purchase of property and equipment                                          (17,132)     (228,933)
                                                                        ------------  ------------

Net cash (used in) provided by investing activities                         130,909      (228,933)
                                                                        ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Collection of stock subscription receivable                                       -       321,367
                                                                        ------------  ------------

Effect of exchange rate changes                                             196,460       (17,859)
                                                                        ------------  ------------

Net decrease in cash and cash equivalents                                (1,254,952)     (956,623)

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

Cash and cash equivalents, ending of period                             $ 1,099,632   $ 7,032,635
                                                                        ============  ============


Supplemental disclosures:
  Cash paid during the period for:
  Interest                                                              $         -   $       973
                                                                        ============  ============
  Income taxes                                                                    -             -
                                                                        ============  ============
</TABLE>



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

<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 and six month periods ended December 31, 2001 are not
necessarily  indicative  of the results that may be expected for the full 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 development,
manufacture,  and  sales  of  medical  products.

The  Company's  wholly  owned  subsidiary  Sangui  BioTech, Inc. ("Sangui USA"),
incorporated  in  Delaware  in 1996, is located in Santa Ana, California. Sangui
USA  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:  SanguiBioTech 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  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  $4.6 million at
December  31,  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
Statement of Financial Accounting Standards ("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.

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.

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
Financial Accounting Standards Board ("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.

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  .

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 dilutive as of December 31, 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.

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 6.)

New  Accounting  Pronouncements

In  July  2001,  the 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.

NOTE 3 - AVAILABLE FOR SALE SECURITIES

Available for sale securities consist of the following at December 31, 2001:


                                   Cost     Fair Market Value   Unrealized Gain
                                ----------  ------------------  ----------------
Corporate bonds due
 within one year                $  211,490  $          321,779  $        110,289
Mutual Funds                    $3,103,978  $        3,140,158  $         36,180
                                ----------  ------------------  ----------------
                                $3,315,468  $        3,461,937  $        146,469
                                ==========  ==================  ================


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  and $500,000 in the accompanying statement of operations for the three
and  six  months  ended  December  31,  2001, respectively.

NOTE  5  -  PATENT LITIGATION

In December  2000, Axis/Shields ASA, a Norway corporation (Axis), filed a
lawsuit against Sangui USA alleging that Sangui USA's Carbohydrate-Deficient
Transferrin  ("CDT") test kit, which is used to detect chronic alcohol abuse,
constituted an infringement of patent rights owned by Axis.  In March 2001, a
settlement was reached and Sangui USA agreed to cease manufacture and sale of
the CDT test kit.  Sangui USA subsequently designed a new test kit which it is
currently manufacturing and selling.   Sangui USA designed its current product
specifically to avoid infringement of the Axis patent.    In December  2001,
Axis filed another lawsuit in the U.S. District Court for the Central District
of California against Sangui USA alleging that the new test kit also infringed
on Axis' patent rights.  Sangui USA filed an answer denying the claims of Axis
and has counterclaimed against Axis for a declaratory judgment of invalidity of
the patent of Axis and for antitrust violations.  The case has not been
scheduled for trial.

Since  the  resolution  of  this  matter  cannot be determined at this time, the
company  has  not  recorded  any  entry  in  the  December  31,  2001  financial
statements.

<TABLE>
<CAPTION>

NOTE 6 - BUSINESS SEGMENTS

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

                          Three months ended December 31,  Six months ended December 31,
                                       2001       2000        2001        2000
                                   ----------  ----------  ----------  ----------
<S>                                <C>         <C>         <C>         <C>
Net sales:
----------
Sangui USA                         $  141,012  $  138,082  $  242,253  $  262,983
Sangui BioTech AG                           -           -           -           -
GlukoMediTech,AG                            -           -           -           -
Sangui BioTech PTE Ltd, Singapore           -           -           -           -
                                   ----------  ----------  ----------  ----------
                                   $  141,012  $  138,082  $  242,253  $  262,983
                                   ==========  ==========  ==========  ==========


Net loss:
---------
Sangui USA                         $  659,179  $  877,156  $1,298,555  $1,119,619
Sangui BioTech AG                     308,193     460,042     514,672     571,265
GlukoMediTech,AG                      211,381     219,264     411,605     205,494
Sangui BioTech PTE Ltd, Singapore      57,308      25,744     127,385      49,858
                                   ----------  ----------  ----------  ----------
                                   $1,236,061  $1,582,206  $2,352,217  $1,946,236
                                   ==========  ==========  ==========  ==========


Depreciation and amortization
-----------------------------
Sangui USA                         $    3,595  $    4,097  $    7,190  $    7,056
Sangui BioTech AG                      25,421      21,410      50,105      42,324
GlukoMediTech,AG                       10,046       8,883      19,892      15,672
Sangui BioTech PTE Ltd, Singapore           -           -           -           -
                                   ----------  ----------  ----------  ----------
                                   $   39,062  $   34,390  $   77,187  $   65,052
                                   ==========  ==========  ==========  ==========

Identifiable assets
-------------------
Sangui USA                         $  813,434
Sangui BioTech AG                   2,024,831
GlukoMediTech,AG                    2,505,168
Sangui BioTech PTE Ltd, Singapore     192,622
                                   ----------
                                   $5,536,055
                                   ==========

</TABLE>







<PAGE>


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

Forward-looking  Statements

The  following  discussion  of our financial condition and results of operations
should be read in conjunction with the consolidated financial statements and the
related  notes thereto included elsewhere in this quarterly report.  Some of the
information  in  this  quarterly  report  contains  forward-looking  statements,
including  statements related to anticipated operating results, margins, growth,
financial  resources,  capital requirements, adequacy of the Company's financial
resources,  trends  in  spending on development, the development of new markets,
the  development, regulatory approval, manufacture, distribution, and commercial
acceptance  of  new products, and future product development efforts.  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 development projects are primarily in the preliminary stages.  The
Company  is  diligently  developing  several  applications  for  its  primary
development projects, but does not anticipate beginning any government protocols
or  clinical  trials  in  the  near  term.

FINANCIAL  POSITION

The  Company's current assets decreased approximately $1.3 million, or 21%, from
June  30, 2001 to approximately $5.0 million at December 31, 2001.  The decrease
is  primarily  attributable  to  a  decrease  in  cash  and  cash equivalents of
approximately  $1.2  million  and  a  decrease  in  prepaid  and other assets of
approximately  $89,000.  The decrease in cash results primarily from funding the
current  year's  operations  of  the  Company.

The  Company's  property  and equipment decreased approximately $59,000, or 12%,
from  June 30, 2001 to approximately $455,000 at December 31, 2001 due primarily
to  $77,000  of  depreciation.

The  Company funded its operations primarily through its existing cash reserves.
The  Company's  stockholders'  equity  decreased approximately $1.3 million. The
primary  decrease  is  caused  by  the  Company's  current  period  net  loss of
approximately $2.4 million.  Increases include a reduction in prepaid consulting
fees  of $220,000 due to amortization, an increase in additional paid-in capital
of  $500,000  due  to  the  amortization  of the fair value of previously issued
options,  and  an  increase  in  accumulated  other  comprehensive  income  of
approximately  $336,000  due  to  foreign  currency  translation adjustments and
unrealized  gain  on  marketable  securities.


RESULTS  OF  OPERATIONS

Three  Months  Ended  December  31,  2001  and  2000:

Sangui USA
SALES.  Sales  increased 2% to approximately $141,000 in 2001 from approximately
$138,000  in  2000.  The  increase  is  attributed  to more orders placed in the
current  quarter  by  the  Company's  German  distributor.

COST OF SALES.  Cost of sales increased 7% to approximately $89,000 in 2001 from
approximately  $83,000  in  2000.  This  increase  is related to increased costs
associated  with the increase in sales.  The Company's gross margin decreased to
37%  in  2001  from  40%  in  2000.

GENERAL  AND ADMINISTRATIVE. General and administrative expenses increased 5% to
approximately  $352,000  in  2001  from  approximately  $335,000  in  2000. This
increase  is  primarily  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 and $500,000 in 2000, which represents the
amortization  of  the  fair  value  of  stock  options  previously issued to the
chairman  of  the  Company.  The increase of $250,000 results from adjusting the
compensation  expense  for  fiscal  year  2000  in  the  second  quarter.

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

Sangui AG
RESEARCH  AND  DEVELOPMENT.  Development expenses decreased 39% to approximately
$132,000  in  2001  from  approximately  $217,000  in  2000.

GENERAL  AND  ADMINISTRATIVE.  General and administrative expenses decreased 21%
to  approximately  $193,000  in  2001  from  approximately  $244,000  in  2000.

Gluko  AG
RESEARCH  AND  DEVELOPMENT.  Development  expenses decreased 9% to approximately
$112,000  in  2001  from  approximately  $122,000  in  2000.

GENERAL  AND  ADMINISTRATIVE.  General and administrative expenses decreased 17%
to  approximately  $98,000  in  2001  from  approximately  $118,000  in  2000.

Sangui  Singapore
GENERAL  AND  ADMINISTRATIVE. General and administrative expenses increased 123%
to  approximately  $57,000  in  2001  from approximately $26,000 in 2000 and are
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 $1.2 million,
or  approximately  three  cents  per  common  share,  in  2001,  compared  to
approximately  $1.6  million,  or  four  cents  per common share, in 2000.  This
decrease in net loss is a result primarily of a decrease in compensation expense
related  to  stock  options.

Six  months  Ended  December  31,  2001  and  2000:

Sangui  USA
SALES.  Sales  decreased 9% to approximately $242,000 in 2001 from approximately
$263,000  in  2000.  This  decrease  is  attributed  to  the  Company's  German
distributor  making  fewer  purchases  in  2001.

COST  OF  SALES.  Cost  of  sales decreased 2% to approximately $170,000 in 2001
from  approximately $174,000 in 2000.  This decrease is related to reduced costs
associated  with the decrease in sales.  The Company's gross margin decreased to
30%  in  2001  from  33%  in 2000 primarily due to decrease in economy of scale.

GENERAL AND ADMINISTRATIVE. General and administrative expenses increased 28% to
approximately  $655,000  in  2001  from  approximately  $513,000  in  2000. This
increase is related primarily to legal costs incurred by the Company in lawsuits
against  a  former  director  of  the  Company.

COMPENSATION  EXPENSE RELATED TO STOCK OPTIONS.  Compensation expense related to
stock  options  was $500,000 in 2001 and 2000, which represents the amortization
of  the  fair  value  of  stock options previously issued to the chairman of the
Company.

AMORTIZATION  OF  PREPAID  CONSULTING  FEES.  Amortization of prepaid consulting
fees  was  approximately  $220,000  in  2001  and  $224,000  in  2000.

Sangui AG
RESEARCH  AND  DEVELOPMENT.  Development expenses decreased 19% to approximately
$247,000  in  2001  from  approximately  $293,000  in  2000.

GENERAL AND ADMINISTRATIVE.  General and administrative expenses increased 9% to
approximately  $291,000  in  2001  from  approximately  $265,000  in 2000.  This
increase  is  attributed  to  increases  in  staffing  and  operating  expenses.

Gluko  AG
RESEARCH  AND  DEVELOPMENT.  Development expenses increased 36% to approximately
$289,000  in  2001  from  approximately  $185,000  in  2000.

GENERAL  AND  ADMINISTRATIVE.  General and administrative expenses increased 48%
to  approximately  $141,000  in  2001  from  approximately  $74,000  in  2000.

Sangui  Singapore
GENERAL  AND  ADMINISTRATIVE. General and administrative expenses increased 164%
to  approximately  $132,000  in  2001 from approximately $50,000 in 2000 and are
attributed  to full time operations in the current fiscal year compared to start
up  operations  in  the  prior  fiscal  year.

Sangui  Biotech  International,  Inc.
NET LOSS.  The Company's consolidated net loss was approximately $2.4 million or
approximately  six  cents  per  common share, in 2001, compared to approximately
$2.0  million,  or  five  cents per common share, in 2000.  This increase in net
loss  is  a  result  primarily  of  increased  operating  and  legal  expenses.


LIQUIDITY AND CAPITAL RESOURCES

For  the  six-months  ended  December  31,  2001,  net  cash  used  in operating
activities  increased  to  approximately  $1.6  million  from approximately $1.0
million in the corresponding period in 2000, primarily related to an increase in
the  Company's  consolidated  net  loss.

For  the  six-months  ended  December  31,  2001,  net  cash  used  in investing
activities  was  approximately  $16,000  compared  to net cash used in investing
activities  of  approximately $229,000 in the corresponding period in 2000.  The
principal  increase  in  cash  is  due  to the decrease in purchases the current
period  of  property  and  equipment.

For  the  six-months  ended  December  31,  2001,  there was no cash provided by
financing  activities compared to approximately $321,000 of net cash provided by
financing  activities  of  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 $4.7 million at December 31, 2001, a decrease
of  approximately  $1.3  million  from  June 30, 2001.  For the six-month period
ended  December  31,  2001,  cash  and  cash  equivalents and available for sale
securities declined approximately 22%, to approximately $4.5 million at December
31,  2001  from  approximately  $5.8  million  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 December 31, 2001 includes approximately $322,000 in
investment grade bonds of German companies generally with original maturities
less than six months which are generally held to maturity, and approximately
$3.1 million 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 six-months
ended December 31, 2001, realized gains and losses on the Company's marketable
securities were negligible, and unrealized gains were approximately $146,000.

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.


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.

In  December,  2000,  Axis/Shields  ASA,  a  Norway  corporation (Axis), filed a
lawsuit  against  Sangui  USA  alleging that Sangui USA's Carbohydrate-Deficient
Transferrin  ("CDT")  test  kit,  which is used to detect chronic alcohol abuse,
constituted  an  infringement  of  patent rights owned by Axis. In March 2001, a
settlement  was  reached  and Sangui USA agreed to cease manufacture and sale of
the  CDT  test kit.  Sangui USA subsequently designed a new test kit which it is
currently  manufacturing  and selling.   Sangui USA designed its current product
specifically  to  avoid  infringement  of the Axis patent.    In December  2001,
Axis  filed  another lawsuit in the U.S. District Court for the Central District
of  California, against Sangui USA alleging that the new test kit also infringed
on  Axis'  patent rights.  Sangui USA filed an answer denying the claims of Axis
and  has counterclaimed against Axis for a declaratory judgment of invalidity of
the  patent  of  Axis  and  for  antitrust  violations.  The  case  has not been
scheduled for trial. Since the resolution of this matter cannot be determined at
this  time,  the  company  has  not  recorded any entry in the December 31, 2001
financial  statements.

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.
     The  Company  filed  a Report on Form 8-K on October 10, 2001 reporting the
resignation  of  Helmut  Kappes  as  a  director  of  the  Company.



                              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:     _______________________________
        Detlev  Baron  von  Linsingen
        Chief  Financial  Officer,  Treasurer


Date:     February  14,  2002