For the three-month period ending June 30, 2009, AMDL reported revenues of approximately $3.2 million, a 35 percent decrease compared with revenues of $4.9 million in the second quarter of 2008. AMDL reported a comprehensive loss of approximately $8.0 million ($0.51 per share) in the second quarter of 2009, that included a one-time loss of approximately $4.2 million associated with the sale of YYB -- a wholly-owned foreign subsidiary of AMDL's China-based subsidiary Jade Pharmaceuticals Inc. (JPI), and a $1.9 million provision for doubtful accounts receivable from fourth quarter FY2008 sales of its newly launched Nalefen human placenta extract (HPE) based skin care product.

Sales for the second quarter were affected by commercial production delays for the Company's strongest selling Goodnak(TM) anti-aging injectable. Lack of commercial production was the result of a non-operational small-injectable production line, which was off-line while awaiting a mandatory 5-year GMP re-certification from the SFDA in China. As previously announced AMDL received initial re-certification in March 2009 and resumed full product production in July 2009. On a comparable basis before one-time charges, AMDL reported a loss of $0.51 per share during the second quarter of 2009, as compared to a $0.03 per share loss in the second quarter of 2008.

Gross profits for the second quarter FY2009 decreased to approximately $1.0 million compared to approximately $2.4 million for the same period in FY2008. Selling, general and administrative expenses for continuing operations of the Company were approximately $3.8 million for the quarter as compared to approximately $2.7 million for the same period in FY2008.

"The results we announced today are a clear indication we've encountered challenges with our China operations. With two consecutive down quarters, my top priority is to re-evaluate the business and take whatever necessary steps to position AMDL for the future," said AMDL Chairman and CEO Douglas MacLellan. "I am working closely with our US and China-based management teams and Board of Directors to scrutinize all aspects of AMDL's business - both in the US and China - with the goal of structuring operations in a manner that best suits the long-term growth and profitability of AMDL. We are well down the path in outlining a plan to focus AMDL's US operations solely on the In-Vitro Cancer Diagnostic and high-end skin care product markets with JPI organized and operated as a separate asset to AMDL. Based on the diversity of our China and US-based businesses, independent strengths of executive management and market potential of each of AMDL's operating divisions we are confident this path offers the greatest upside potential for AMDL and its shareholders."

AMDL Planned Spin-Off of JPI/JJB

AMDL believes the most prudent path to raising additional capital for our China-based operations is for JJB to complete one or more equity private placements during the third and fourth quarters of FY2009. Specifically, AMDL's China-based management team believes the strongest path for AMDL to monetize its investments in JPI/JJB is for JJB to then seek a public listing on the Growth Enterprise Market ("GEM") located in Shenzhen, China during the first half of 2010. AMDL's executive management team and Board of Directors are in agreement with JPI/JJB's management recommendations of a "spin-off" strategy and anticipate working with JPI/JJB to complete development plans with the goal of delivering potential returns for AMDL and its shareholders.