[GRAPHIC  OMITED]

Sangui  BioTech,  Inc.
1508  Brookhollow  Drive,  Suite  354
Santa  Ana,  California  92705  USA
714-429-7807  (Voice)
714-429-7808  (Fax)
e-mail:  sangui@earthlink.net


                             STOCK OPTION AGREEMENT

     This  Stock Option Agreement (the "Agreement") is entered into effective as
of  October  13,  2000,  by  and  between  SANGUI BIOTECH INTERNATIONAL, INC., a
Colorado  corporation  (the "Company"), and Prof. Wolfgang Barnikol, M.D., Ph.D.
(the  "Optionee").


                                    RECITALS
                                    --------

     A.     The  Company desires to give opportunity to the Optionee to purchase
certain  shares  of  Company's common stock. The Company acknowledges Optionee's
assignment  of  all  his  related  patents  to  the  Company.

     B.     The  Optionee  desires to accept an option to purchase the number of
shares  set  forth  below  (the "Option"), during the period and at the exercise
price  specified  below, subject to and upon the following terms and conditions.



                                    AGREEMENT
                                    ---------

     1.     General.     As  used  in  this Agreement, the following terms shall
            --------
have  the  following  meanings:

          (a)     Optionee:     Prof.  Wolfgang  Barnikol,  M.D.,  Ph.D.

          (b)     Date  of  grant:     April,  ___,  1999

          (c)     Number  of  shares  optioned:     3,000,000

          (d)     Option  exercise  price  per  share:     U.S.  $0.01

          (e)     Option  termination  date:     June  30,  2009


     2.     Vesting of Option.     This option shall become exercisable upon the
            ------------------
date,  on  which  an auditor's report will be issued that confirms the Company's
economical  feasibility.  The Company shall be deemed economical feasible on the
day,  on  which the Company has finished the development either of the long-term
implantable  glucose  sensor  or of the artificial oxygen carrier for one of its
main  applications,  and the Company receives regulatory approval to market such
product  in one of the major markets as United States, Germany or Singapore. The
Option  may  be exercised at one time or time by time, for all or any portion of
optioned number of shares at any time until expiration or earlier termination of
this  Option.

<PAGE>

     3.     Restrictions  on  Exercise.     The following provisions shall apply
            ---------------------------
to  the  exercise  of  this  Option:

          (a)     Termination  of  Continuous Status as an Employee.          In
                  --------------------------------------------------
the  event  of  termination  of  Optionee's  continuous status as an employee or
Officer or Director of the Company or its subsidiaries for any other reason than
Optionee's  death  or disability, or mutually agreement, or retirement forced by
law,  Optionee  may  only  exercise  the  Option  within six (6) months from the
earlier  of  the  date  of such termination or the date the Company's economical
feasibility  is  confirmed.

          (b)     Disability  of  Optionee.          In the event of termination
                  -------------------------
of  Optionee's  continuous  status  as an employee or Officer or Director of the
Company  or  its subsidiaries as a result of Optionee's disability, the Optionee
may  only exercise the Option within six (6) months from the earlier of the date
of  such  termination  or  the  date  the  Company's  economical  feasibility is
confirmed.

     (c)     Death  of  Optionee.     In  the event of termination of Optionee's
             --------------------
continuous  status  as  an employee or Officer or Director of the Company or its
subsidiaries  as  a result of Optionee's death, the Option may only be exercised
within six (6) months following the earlier of the date of death or the date the
Company's  economical  feasibility is confirmed by the Optionee's estate or by a
person  who acquired the right to exercise the Option by bequest or inheritance.

          (d)     Limitations.     Under  no  circumstances  shall  the  Option
                  ------------
become exercisable under this section 3 after June 30, 2009. Upon the earlier of
the  expiration  of any limited exercise period under this section 3 or June 30,
2009,  the  Option  shall  terminate  and  cease  to  be  exercisable.

          (e)     Immediate  Termination.     Should  (i)  the  Optionee's
                  -----------------------
continuous  status  as  an employee or Officer or Director of the Company or its
subsidiaries  be  terminated  for misconduct (including, but not limited to, any
act  of  dishonesty,  willful  misconduct,  fraud  or  embezzlement) or (ii) the
Optionee  make any unauthorized use or disclosure of confidential information or
trade secrets of the Company, then in any such event this Option shall terminate
immediately  and  cease  to  be  exercisable.


4.     Option  Adjustments
       -------------------

     (a)     Change  in  Capitalization.     If the outstanding shares of Common
             ---------------------------
Stock  of  the Company are increased, decreased, changed into or exchanged for a
different  number  of  kind  of  shares  of  the Company through reorganization,
recapitalization, reclassification, stock dividend, stock split or reverse stock
split, upon authorization by the Board of Directors of the Company (the "Board")
an  appropriate and proportionate adjustment shall be made in the number or kind
of  shares,  and  the  per-share  option  price  thereof, which may be issued to
Optionee  under  the  Option; provided, however, that no such adjustment need be
made  if,  upon the advice of counsel, the Board determines that such adjustment
may  result  in  the  receipt  of  federal taxable income to the Optionee or the
holders  of  Common  Stock  or  other  classes  of  the  Company's  securities.

     (b)     Corporate Reorganizations.     Upon the occurrence of a Terminating
             --------------------------
Transaction,  as  defined  below,  as  of the effective date of such Terminating
Transaction,  the  Option  (whether  or  not  vested) shall terminate unless (i)
provision  is  made  in  writing  in  connection  with  such transaction for the
assumption  of  such  Option,  or  for  the  substitution for such Option of new

<PAGE>

options  covering  the  securities  of  a  successor corporation or an affiliate
thereof,  with  appropriate  adjustments as to the number and kind of securities
and  exercise  prices, in which event such Option shall continue or be replaced,
as  the  case may be, in the manner and under the terms so provided, or (ii) the
Board  otherwise  shall  provide  in  writing  for  such adjustments as it deems
appropriate  in  the terms and conditions of the Option (whether or not vested),
including  without  limitation  providing for the cancellation of the Option and
its  automatic  conversion  into  the  right  to receive the securities or other
properties  which  a  holder of the shares underlying the Option would have been
entitled  to  receive  upon  such  Terminating  Transaction had such shares been
issued  and  outstanding  (net  of  the  appropriate option exercise price). If,
pursuant  to  the  foregoing  provisions of this paragraph (b), the Option shall
terminate  by  reason  of  the  occurrence  of a Terminating Transaction without
provision  for any of the action(s) described in clause (i) or (ii) hereof, then
Optionee  shall  have  the  right,  at  such  time  immediately  prior  to  the
consummation  of  the  Terminating  Transaction as the Board shall designate, to
exercise  his  Option to the full extent not theretofore exercised. "Terminating
Transaction"  shall  mean  any  of  the following events: (a) the dissolution or
liquidation of the Company; (b) a reorganization, merger or consolidation of the
Company  with one or more other companies (except with respect to a transaction,
the  purpose  of  which  is to change the domicile or name of the Company), as a
result  of  which  the  Company goes out of existence or becomes a subsidiary of
another  corporation  (which  shall  be  deemed  to  have  occurred  if  another
corporation  shall  own,  directly or indirectly, fifty percent (50%) or more of
the aggregate voting power of all outstanding equity securities of the Company);
or  (c)  a  sale  of  all  or  substantially  all  of  the  Company's  assets.

     5.     Option  Not  Transferable.     This Option may not be sold, pledged,
            --------------------------
hypothecated, assigned, encumbered, gifted or otherwise transferred or alienated
in  any  manner,  either voluntarily or involuntarily by operation of law, other
than by will or the laws of descent or distribution, and may be exercised during
the  lifetime  of  the  Optionee  only  by  such  Optionee.

     6.     No  Rights  in  Shares Before Issuance and Delivery.     Neither the
            ----------------------------------------------------
Optionee,  his  estate  nor  his  transferees by will or the laws of descent and
distribution shall be, or have any rights or privileges of, a shareholder of the
Company  with  respect to any shares issuable upon exercise of the Option unless
and  until  certificates  representing  such  shares  shall have been issued and
delivered  notwithstanding  exercise  of the Option. No adjustments will be made
for  a  dividend or other rights where the record date is prior to the date such
stock  certificates  are  issued,  except  as  provided  in  Section  4.

     7.     Taxes.          The  Board  shall make such provisions and take such
            ------
steps
as  it deems necessary or appropriate for the withholding of any federal, state,
local  and other tax required by law to be withheld with respect to the grant or
exercise  of  the  Option,  including,  without limitation, the deduction of the
amount  of  any  such  withholding  tax  from  any compensation or other amounts
payable  to  Optionee  by  the Company, or requiring Optionee (or the Optionee's
beneficiary  or  legal  representative) as a condition of granting or exercising
the  Option  to  pay  to  the  Company  any amount require to be withheld, or to
execute  such  other  documents  as  the  Board  deems necessary or desirable in
connection  with  the  satisfaction  of  any  applicable withholding obligation.
Optionee  acknowledges  that he has been advised to consult with a competent tax
advisor  regarding  the  applicable  tax consequences relating to the receipt or
exercise  of  the  Option.

          8.     Exercise  of  Option.     This  Option  may be exercised at any
                 ---------------------
time  as to all or any portions of the number of optioned shares, except that it
may not be exercised for a fraction of a share. This Option shall be exercisable
by  written  notice  (in a form designated by the Company) which shall state the
election  to  exercise  the Option, the number of shares in respect of which the
Option  is  being  exercised,  and  such other representations and warranties of
Optionee  as  may be required by the Company pursuant to Section 9. Such written
notice  shall  be  signed  by  Optionee  and  shall be delivered in person or by
certified  mail  to the President or Chief Financial Officer of the Company. The
written  notice  shall  be accompanied by payment of the exercise price in cash.

          9.     Certain  Representations  and Warranties.     By accepting this
                 -----------------------------------------
Option,  the  Optionee  represents  and  agrees:

     (i)     that  Optionee  shall  accept as binding and final all decisions or
interpretations  of  the  Board  upon any question arising under this Agreement;

     (ii)     that Optionee understands that this Option and any share purchased
upon its exercise are securities, the issuance of which requires compliance with
federal,  state  and  other  applicable  securities  laws;

     (iii)     that  Optionee  is  aware  of  the Company's business affairs and
financial condition and has acquired sufficient information about the Company to
reach  an  informed  and  acknowledgeable  decision  to  acquire the securities.
Optionee is acquiring these securities for investment for Optionee's own account
only  and not with a view to, or for sale in connection with, any "distribution"
thereof  within  the  meaning  of  the  Securities  Act of 1933, as amended (the
"Securities  Act");

(iv)     that  Optionee  acknowledges  and  understands  that  the  securities
constitute  "restricted  securities"  under  the Securities Act and must be held
indefinitely unless they are subsequently registered under the Securities Act or
an  exemption from such registration is available. Optionee further acknowledges
and  understands  that  the  Company  is  under  no  obligation to register such
securities.  Optionee understands that the certificate evidencing the securities
will  be  imprinted with a legend which prohibits the transfer of the securities
unless  they  are registered or such registration is not required in the opinion
of  counsel  satisfactory  to  the  Company, and any other legend required under
applicable  securities  laws;

(v)     as a condition to the exercise of any portion of the Option, the Company
may  require the person exercising such Option to make any representation and/or
warranty  to  the Company as may, in the judgement of counsel to the Company, be
required  by  any  applicable law or regulation, including, but not limited to a
representation  and  warranty  that  the  shares  are  being  required  only for
investment  and  without any present intention to sell or distribute such shares
if, in the opinion of counsel for the Company, such a representation is required
under the Securities Act, or any other applicable law, regulation or rule of any
governmental  agency;  and

(vi)     that  no certificate or certificates for shares of stock purchased upon
exercise  of  this Option shall be issued and delivered unless and until, in the
opinion  of counsel for the Company, such securities may be issued and delivered
without  causing  the Company to be in violation of or incur any liability under
any  federal,  state  or other securities law, any requirement of any securities
exchange  listing  agreement  to  which the Company may be a party, or any other
requirement  of law or any regulatory body having jurisdiction over the Company.
The  Company  shall  be  required  to proceed with due diligence and to take any
reasonable  action  required  by the Company to be taken in order to qualify the
issuance, to the Optionee, of all shares subject to the terms of this Agreement.
The  inability of the Company to obtain any required permits, authorizations, or
approvals  necessary  for  the  lawful  issuance and sale of the shares pursuant
hereto on terms deemed reasonable by the Board shall relieve the Company and the
Board  of any liability in respect of the non-issuance or sale of such shares as
to which such requisite permits, authorizations or approvals shall not have been
obtained.

<PAGE>

          10.     No Employment Rights     Optionee acknowledges and agrees that
                  --------------------
this  Option,  the  transactions contemplated hereunder and the vesting schedule
set  forth  herein do not constitute and express or implied promise of continued
engagement  as  an  employee,  Officer  or  Director  of  the  Company  or  its
subsidiaries  for  the  vesting period, for any period, or at all, and shall not
interfere  with  Optionee's right or the Company's right to terminate Optionee's
employment  at any time, with or without cause. The Company shall have the right
to deal with the Optionee in the same manner as if this Agreement did not exist,
including,  without  limitation,  with  respect  to  all  matters related to the
hiring,  discharge,  compensation  and conditions of employment of Optionee. Any
disputes  as  to  whether  and  when  there has been a termination of Optionee''
employment,  the  reason  (if any) for such termination, and/or the consequences
thereof  under  the  terms of this Agreement shall be determined by the Board in
its  sole  direction,  and  the Board's determination thereof shall be final and
binding.

     11.     Agreement  Binding  on  Successor.     The  terms of this Agreement
             ----------------------------------
shall  be  binding  upon  the  executors,  administrators,  heirs,  successors,
transferees  and  assignees  of  the  Optionee.

12.     Costs  of  Litigation.     In  any action at law or in equity to enforce
        ----------------------
any  of the provisions or rights under this Agreement, the unsuccessful party to
such litigation, as determined by the court in a final judgment or decree, shall
pay  the  successful  party  or  parties all costs, expenses and attorneys' fees
reasonably  incurred  by  the  successful  party  or parties (including, without
limitation costs, expenses and fees on any appeals), and if the successful party
recovers  judgment  in  any  such  action or proceeding such costs, expenses and
attorneys'  fees  shall  be  included  as  part  of  the  judgment.

     13.     Necessary  Acts.     The  Optionee  agrees  to perform all acts and
             ----------------
execute  and deliver any documents that may be reasonably necessary to carry out
the  provisions  of  this Agreement, including, but not limited to, all acts and
documents  related to compliance with federal and/or state securities and/or tax
laws.

     14.     Invalid  Provisions.     In  the  event  that any provision of this
             --------------------
Agreement is found to be invalid or otherwise unenforceable under any applicable
law, such invalidity or unenforceability shall not be construed as rendering any
other  provisions  contained herein invalid or unenforceable, and all such other
provisions shall be given full force and effect to the same extent as though the
invalid  and/or  unenforceable  provision  was  not  contained  herein.

     15.     Notices.     Any  notice  to  be  given  to  the  Company  shall be
             --------
addressed  to  the Company in care of its Secretary at its principal office, and
any  notice  to  be  given to the Optionee shall be addressed to Optionee at the
address  given  beneath  hi  signature  hereto  or  at such other address as the
Optionee  may  hereafter  designate  in  writing to the Company. Any such notice
shall  be  deemed  duly  given  when  enclosed  in a properly sealed envelope or
wrapper  addressed as aforesaid, registered or certified, and deposited, postage
and  registry  or  certification  fee  prepaid,  in a post office or branch post
office  regularly  maintained  by  the  United  State  Postal  Service.

     16.     Entire  Agreement.     This  Agreement  constitutes  the  entire
             ------------------
agreement  among  the  parties  pertaining  to  the  subject  matter  hereof and
Optionee's  rights to an equity interest in the Company and supersedes all prior
agreements,  understandings,  negotiations  and  discussions,  whether  oral  or
written,  of the parties. This Agreement takes the place of the Option Agreement
of  June  7,  1997  and  of  the Option Agreement as of April ,1999, which both
become  null  and  void  upon  effectiveness of this Agreement. The Agreement of
October  29, 1996 between the parties pertaining to Royalties in exchange to the
assignment  of  Optionee's  patents  to  the  Company  is  hereby  unaffected.

<PAGE>

     17.     Laws  Applicable  to  Construction.     This  Agreement  has  been
             -----------------------------------
executed  and  delivered  by  the  Company  in  the State of California and this
Agreement  shall  be  construed and enforced in accordance with the laws of said
State.

     IN  WITNESS  WHEREOF,  the  Company  gas granted this Option on the date of
grant  specified  above.



     Sangui  BioTech  International, Inc.          Prof. Wolfgang Barnikol, M.D.
and  Ph.D.


     Date:                              Date:     3  November  1999
                                                  -----------------


     By: /S?                                      /S?


Joerg  Alte                                       Wolfgang  Barnikol
President  and  CEO