----

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|     Colorado                                    |   | 84-1509950                        |
|---------------------------------------------------------------------|--------|-----------------------------------|
| (State or other jurisdictionof incorporation or organization)  |   | (IRS Employer Identification No.) |

----

| PART I.    FINANCIAL INFORMATION                                                                                   |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                   |   |
| Item 1.      Consolidated Financial Statements                                                                | 3      |
|                                                                                                                                   |   |
| Consolidated Balance Sheet                                                                                                             | 3      |
|                                                                                                                                   |   |
| Consolidated Statements of Operations,                                                                                                 | 5      |
|                                                                                                                                   |   |
| Consolidated Statements of Cash Flows                                                                                                  | 6      |
|                                                                                                                                   |   |
| Consolidated Statements of Comprehensive Loss                                                                                          | 7      |
|                                                                                                                                   |   |
| Consolidated Statement of Stockholders’ (Deficit)                                                                                | 8      |
|                                                                                                                                   |   |
| Notes to Unaudited Consolidated Financial Statements                                                                                   | 9      |
|                                                                                                                                   |   |
| Item 2.       Management's Discussion and Analysis of Financial Condition and Results of Operations | 13     |
|                                                                                                                                   |   |
| Item 3.       Quantitative and Qualitative Disclosures About Market Risk                            | 19     |
|                                                                                                                                   |   |
| Item 4T.       Controls and Procedures                                                              | 19     |
|                                                                                                                                   |   |
| Part II. OTHER INFORMATION                                                                                                             |   |
|                                                                                                                                   |   |
| Item 1        Legal Proceedings                                                                | 20     |
|                                                                                                                                   |   |
| Item 1A.    Risk Factors                                                                                                | 20     |
|                                                                                                                                   |   |
| Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds                           | 20     |
|                                                                                                                                   |   |
| Item 3.       Defaults upon Senior Securities                                                       | 20     |
|                                                                                                                                   |   |
| Item 4.       (Removed and Reserved)                                                                | 20     |
|                                                                                                                                   |   |
| Item 5.       Other Information                                                                          | 20     |
|                                                                                                                                   |   |
| Item 6.       Exhibits                                                                              | 20     |
|                                                                                                                                   |   |
| SIGNATURES                                                                                                                             | 21     |
|                                                                                                                                   |   |

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| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|              |   | March 31, 2010 |                                        |   | September 30, 2009 |   |
|--------------------------------------------------------------------------|--------|----------------|---------------------------------------------|--------|--------------------|--------|
|                                                                     |   | (Unaudited)    |                                        |   | (Audited)          |   |
| Assets                                                                   |   |           |                                        |   |               |   |
|  Current Assets                                                     |   |           |                                        |   |               |   |
| Cash and cash equivalents                                                |   | $              | 53 080                                      |   |               | $      | 77,461 |   |
| Accounts receivable                                                      |   |           | 182                                         |   |               |   | 5,425 |   |
| Inventories                                                              |   |           | 247,295                                     |   |               |   | 220,139 |   |
| Prepaid expenses                                                         |   |           | 5,273                                       |   |               |   | 5,040 |   |
|                                                                     |   |           |                                        |   |               |   |   |   |
| Total Current Assets                                                     |   |           | 305,830                                     |   |               |   | 308,065 |   |
|                                                                     |   |           |                                        |   |               |   |   |   |
|                                                                     |   |           |                                        |   |               |   |   |   |
| Long Term Investment                                                     |   |           |                                        |   |               |   |   |   |
| Investment in MIT China Joint Venture                                    |   |           |       387 038 |   |               |   |          426,678 |   |
|                                                                     |   |           |                                        |   |               |   |   |   |
| Property and Equipment                                                   |   |           |                                        |   |               |   |   |   |
| Tooling and machinery                                                    |   |           | 306,217                                     |   |               |   | 290,053 |   |
| Furniture and office equipment                                           |   |           | 143,580                                     |   |               |   | 136,001 |   |
| Leasehold improvements                                                   |   |           | 29 539                                      |   |               |   | 27,980 |   |
|                                                                     |   |           | 479,336                                     |   |               |   | 454,033 |   |
|                                                                     |   |           |                                        |   |               |   |   |   |
| Less accumulated depreciation                                            |   |           | (448,855                                    | )      |               |   | (416,409 | ) |
|                                                                     |   |           | 30,481                                      |   |               |   | 37,624 |   |
| Other Assets                                                             |   |           |                                        |   |               |   |   |   |
| Patents (net of accumulated amortization of $5,002 and $2,612)           |   |           | 17,948                                      |   |               |   | 8,387 |   |
|      Total assets                               |   | $              | 741 296                                     |   |               | $      | 780,754 |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                             |   |
|----------------------------------------------------------------------------------|--------|
|                                                                             |   |
| CONSOLIDATED BALANCE SHEET                                                       |   |
|                                                                             |   |
|                                                                             |   |   |   |   |   |   |
|                                                                             |   | March 31 2009 |   |   | September 30 2009 |   |
|                                                                             |   | (Unaudited) |   |   | (Audited) |   |
| Liabilities and Stockholders' Equity (Deficit)                                   |   |   |   |   |   |   |
| Current Liabilities                                                              |   |   |   |   |   |   |
|         Deferred income                       |   |  $ | 1,169,436 |   |   |  $ | 1,226,396 |   |
|         Accounts payable and accrued expenses |   |   | 508,787 |   |   |   | 388,903 |   |
|         Amounts due to related parties        |   |   | 3,551,678 |   |   |   | 3,332,463 |   |
|         Current portion of long-term debts    |   |   | 2,540 |   |   |   | 6,014 |   |
|                                                                             |   |   | 5,232,441 |   |   |   | 4,953,776 |   |
|         Long-Term Debts                       |   |   | - |   |   |   | - |   |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Liabilities                                                                |   |   | 5,232,441 |   |   |   | 4,953,776 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Stockholders' Equity (Deficit)                                                   |   |   |   |   |   |   |   |   |
| Preferred stock, $.0001 par value; 3,000,000 shares authorized;                  |   |   |   |   |   |   |   |   |
| None issued and outstanding as of December 31, 2007                              |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Common stock, $.0001 par value; 100,000,000 shares authorized;                   |   |   |   |   |   |   |   |   |
|  60,357,795 and 59,087,795 shares issued and                                |   |   |   |   |   |   |   |   |
| Outstanding, respectively                                                        |   |   | 6,341 |   |   |   | 5,909 |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Additional paid-in capital                                                       |   |   | 8,132,445 |   |   |   | 7,699,478 |   |
| Deficit                                                                          |   |   | (12,343,320 | ) |   |   | (11,667,623 | ) |
| Other comprehensive income (loss)                                                |   |   | (286,611) |   |   |   | (210,786 | ) |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Stockholders' Equity (Deficit)                                             |   |   | (4,491,145 |  ) |   |   | (4,173,022 |  ) |
|                                                                             |   |   |   |   |   |   |   |   |
|                                                                             |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders' Equity (Deficit)                             |   |  $ | 741 296 |   |   | $ | 780,754 |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                    |   | Three-Months PeriodEnded March 31, |       |   | Six-Months Period Ended March 31, |   |
|-------------------------------------------------------------------------|--------|------------------------------------|------------|--------|----------------------------------------|--------|
|                                                                    |   | 2010(Unaudited)                    |       |   | 2009(Unaudited)                        |   |   | 2010(Unaudited) |   |   | 2009(Unaudited) |   |
| Sales                                                                   |   | $                                  | 144,557    |   |                                   | $      | 88,002 |   |   | $ | 353,120 |   |   | $ | 158,917 |   |
| Cost of sales                                                           |   |                               | ( 43,588   | )      |                                   |   | ( 34,151 | ) |   |   | (98,579 | ) |   |   | (85 761 | ) |
| Gross profit (loss)                                                     |   |                               | 100,969    |   |                                   |   | 53,851 |   |   |   | 254,541 |   |   |   | 73,156 |   |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development costs                                          |   |                               | (74,017    | )      |                                   |   | (450,000 | )  |   |   | (76,484 | ) |   |   | (900,000 | )  |
| Selling, general, and administrative expenses                           |   |                               | ( 513,927  | )      |                                   |   | (115,861 | )  |   |   | (797,201 | ) |   |   | (266,239 |  ) |
|                                                                    |   |                               | (587,944   | )      |                                   |   | (565,861 | )  |   |   | (873,685 | ) |   |   | (1,166,239 | )  |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|  Loss from operations                                              |   |                               | (486 975   | )      |                                   |   | (512,010 | ) |   |   | (619,144 | ) |   |   | (1,093,083 | ) |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)Equity earnings (loss) on MIT China Joint Venture |   |                               | (50,077)   |   |                                   |   | -  |   |   |   | (50,077)  |   |   |   | -  |   |
| Interest income/loss                                                    |   |                               | (588       | )      |                                   |   | (798 | )  |   |   | - |   |   |   | 514 |   |
| Interest expense                                                        |   |                               | (232       | )      |                                   |   | (538 | ) |   |   | (6,476 | ) |   |   | (1,179 | ) |
|                                                                    |   |                               | (50,897    | )      |                                   |   | (1,336 | )  |   |   | (56,553 | ) |   |   | (665 | ) |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                |   | $                                  | (537,872   | )      |                                   | $      | (513,346 | ) |   | $ | (675,697 | ) |   | $ | (1,093,748 | ) |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic (loss) per share                                                  |   | $                                  | (0.01      | )      |                                   | $      | (0.01 | ) |   | $ | (0.01 | ) |   | $ | (0.02 | ) |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding                               |   |                               | 60,357,795 |   |                                   |   | 51,058,663 |   |   |   | 62,297,795 |   |   |   | 45,915,806 |   |
|                                                                    |   |                               |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |

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| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                                        |   | Six-Month Period Ended |                                                   |
|---------------------------------------------------------------------------------------------|--------|------------------------|--------------------------------------------------------|
|                                                                                        |   | March 31,              |                                                   |   | March 31, |   |
|                                                                                        |   | 2010                   |                                                   |   | 2009 |   |
| Cash flows from operating activities:                                                       |   |                   |                                                   |   |   |   |
| Net loss                                                                                    |   | $                      | (675,697                                               | ) |   | $ | (1,093,748 | ) |
| Adjustments to reconcile net loss to net cash                                               |   |                   |                                                   |   |   |   |   |   |
|   provided by (used in) operating activities:                                     |   |                   |                                                   |   |   |   |   |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
|     Equity loss from MIT China Joint Venture                            |   |                   |        50,077       |   |   |   |   |   |
|     Depreciation and amortization expense                               |   |                   | 11,533                                                 |   |   |   | 26,915 |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
|     Common stock issued for services                                    |   |                   | 333,400                                                |   |   |   | 2,400 |   |
|     Related party payables settle by common stock                       |   |                   |                                                   |   |   |   |        21,600 |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
| Changes in:                                                                                 |   |                   |                                                   |   |   |   |   |   |
|     Accounts receivable                                                 |   |                   | 5,243                                                  |   |   |   | (10,222 | ) |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
|     Inventories                                                         |   |                   | (27,156                                                | ) |   |   | (10) |   |
|     Prepaid expenses                                                    |   |                   | (233                                                   | ) |   |   | (3,091) |   |
|     Accounts payable and accrued liabilities                            |   |                   | 119,884                                                |   |   |   | 211,788 |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
|     Deferred income                                                     |   |                   | (56,960                                                | ) |   |   | 20,225 |   |
|          Net cash used by operating activities |   |                   | (239,909                                               | ) |   |   | (824,113 | )  |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
| Cash flows from investing activities:                                                       |   |                   |                                                   |   |   |   |   |   |
|     Acquisition of patents                                              |   |                   | (11,386                                                | )  |   |   | - |   |
|     Investment in MIT China joint venture                               |   |                   | (10,437                                                | )  |   |   | - |   |
|     Tooling and machinery                                               |   |                   | -                                                      |   |   |   | - |   |
|         Net cash used by investing activities       |   |                   | (21,823                                                | ) |   |   |   |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
| Cash flows from financing activities:                                                       |   |                   |                                                   |   |   |   |   |   |
|    Proceeds from issuance of stock, net                                      |   |                   | 100,000                                                |   |   |   | - |   |
|    Increase in amounts due to related parties                                |   |                   | 219,215                                                |   |   |   | 688,512 |   |
|    Issuance of notes payable                                                 |   |                   | -                                                      |   |   |   | - |   |
|    Repayment on notes payable                                                |   |              |         (3,474 | ) |   |    |        (6,910 | )  |
|         Net cash provided from financing activities |   |                   | 315,741                                                |   |   |   | 681,602 |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
| Effect of exchange rates                                                                    |   |                   | (78,390)                                               |   |   |   | 95,914 |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
|                                                                                        |   |                   |                                                   |   |   |   |   |   |
| Increase (decrease) in cash                                                                 |   |                   | (24,381                                                | )  |   |   | (46,597 | ) |
| Cash, beginning of period                                                                   |   |                   | 77,461                                                 |   |   |   | 94,834 |   |
| Cash, end of period                                                                         |   | $                      | 53,080                                                 |   |   | $ | 48,237 |   |
| Supplemental disclosure of cash flow information:                                           |   |                   |                                                   |   |   |   |   |   |
|     Cash paid for interest                                              |   | $                      | 6,476                                                  |   |   | $ | 641 |   |
|     Cash paid for federal income taxes                                  |   | $                      | -                                                      |   |   | $ | - |   |
| Supplemental disclosure of non-cash transactions                                            |   |                   |                                                   |   |   |   |   |   |
|    Common stock issued for debt reductions                                   |   | $                      | -                                                      |   |   | $ | - |   |

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| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                 |   |
|----------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS                        |   |
|                                                                 |   | Second quarter endingMarch 31,2010 |   |   | Second quarter endingMarch 31,2009 |   |
| Net loss                                                             |   | $ | (675,697 | ) |   | $ | (1, 093,748 | ) |
| Other comprehensive income (loss)                                    |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                              |   |   | (75,825 | ) |   |   | 27,338 |   |
|                                                                 |   |   |   |   |   |   |   |   |
|        Net comprehensive income (loss) |   | $ | (751 522 | ) |   | $ | (1,066,410 | ) |

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| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                    |   |
|---------------------------------------------------------|--------|
|                                                    |   |
| CONSOLIDATED STATEMENT OF STOCKHOLDERS’ (DEFICIT) |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   | Common Stock |   |   | Additional Paid in |   |
|                                                    |   | Shares |   |   | Amount |   |   | Capital |   |   | Deficit |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance – September 30, 2009                      |   |   | 59,087,795 |   |   | $ | 5,908 |   |   | $ | 7,699,478 |   |   | $ | (11,667,623 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for debts                                 |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Shares issued for services                              |   |   | 1,270,000 |   |   |   | 123 |   |   |   | 122,877 |   |   |   | - |   |
| Net loss for the period ended December 31, 2009         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (137,825 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance – December 31, 2009                       |   |   | 60,357,795 |   |   | $ | 6,031 |   |   | $ | 7,822,355 |   |   | $ | (11,805,448 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shares issued for services                              |   |   | 1,315,000 |   |   |   | 210 |   |   |   | 210,190 |   |   |   | - |   |
| Shares issued for cash                                  |   |   | 625,000 |   |   |   | 100 |   |   |   | 99,900 |   |   |   | - |   |
| Net loss for the period ended March 31, 2010            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (537,890 | ) |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance – March 31, 2010                          |   |   | 62,297,795 |   |   |   | 6,341 |   |   |   | 8,132,445 |   |   |   | (12,343,338 | ) |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|            |   | March 31,2010 |    |   | September 30,2009 |   |
|-----------------|--------|---------------|---------|--------|-------------------|--------|
| Raw materials   |   | $             | 180,229 |   |              | $      | 165,193 |   |
| Work in process |   |          | 57,028  |   |              |   | 42,939 |   |
| Finished goods  |   |          | 10,038  |   |              |   | 12,007 |   |
| Total           |   | $             | 247,295 |   |              | $      | 220,139 |   |

----

| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|          |   | March 31,2010 |   |   | September 30,2009 |   |
|---------------|--------|---------------|--------|--------|-------------------|--------|
| R&D Costs |   | $             | 76,484 |   |              | $      | 450,000 |   |
|          |   |          |   |   |              |   |   |   |
|          |   | $             | 76,484 |   |              | $      | 450,000 |   |

|    |   | GrossIntangibleAssets |   |   | Accumulated Amortization |   |   | Net IntangibleAssets |   | WeightedAverageLife(Years) |
|---------|--------|-----------------------|--------|--------|--------------------------|--------|--------|---------------------------|--------|----------------------------|
| Patents |   | $                     | 22,950 |   |                     | $      | 5,002  |                      |   | $                          | 17,948 |   | 8.5 through 16 |

|                                             |   | March31,2010 |      |   | September 30,2009 |   |
|--------------------------------------------------|--------|--------------|-----------|--------|-------------------|--------|
| Payable to Idée International R&D, Inc. |   | $            | 3,403,982 |   |              | $      | 3,332,463 |   |
| Payable to                                       |   |         | 147,696   |   |              |   |   |   |
|                                             |   | $            | 3,551,678 |   |              | $      | 3,332,463 |   |

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| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

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| Medical International Technology, Inc. |  Quarterly Financial Report |
|----------------------------------------|----------------------------------|

|                                                                                                 |   | MARCH 31,2010 |    |   | September 30,2009 |   |
|------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
|                                                                                                 |   |          |    |   |              |   |
| Note payable to a bank, bearing interest at prime plus 2.5%, secured by equipment, due July 21, 2010 |   |          |    |   |              |   |
|                                                                                                 |   | $             | 2,540   |   |              | $      | 6,014 |   |
|                                                                                                 |   |          |    |   |              |   |   |   |
|                                                                                                 |   |          |    |   |              |   |   |   |
| Current portion of long-term debt                                                                    |   |          | (2,540) |   |              |   | (6,014 | ) |
|                                                                                                 |   |          |    |   |              |   |   |   |
|                                                                                                 |   |          |    |   |              |   |   |   |
| Long-term debt                                                                                       |   | $             | -       |   |              | $      | - |   |
|                                                                                                 |   |          |    |   |              |   |   |   |
| Scheduled maturities of long-term debt are as follows:                                               |   |          |    |   |              |   |   |   |
|                                                                                                 |   |          |    |   |              |   |   |   |
| July 21, 2010                                                                                        |   | $        |    |   |              |   | -  |   |
|                                                                                                 |   |          |    |   |              |   |   |   |

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|                                             | Medical International Technology, Inc. |                                          |
|--------------------------------------------------|----------------------------------------|-----------------------------------------------|
|                                             |                                   |                                          |   |
| Date: May 14, 2010      | By:                                    | /s/ Karim Menassa                   |   |
|                                             |                                   | Karim Menassa                                 |   |
|                                             |                                   | President and Principal Executive Officer     |   |
|                                             |                                   | Interim Secretary and Chief Financial Officer |   |