Biophan Technologies Completes First Round of Financing for $2.9 Million; Financing Funds BIPH Strategic Plan and Potential Major Exchange Listing.

Business Editors/Health/Medical Writers

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ROCHESTER, N.Y.--(BUSINESS WIRE)--Jan. 30, 2004

Biophan Technologies, Inc. (OTCBB:BIPH), an innovator, developer and marketer of MRI-related and other advanced biomedical technology, announced today that it has completed its first round of financing with SBI-Brightline, Irvine, California. The financing will further enable the company to pursue its previously announced strategic initiatives which include expansion of its patent portfolio, acceleration of marketing programs, potential strategic acquisitions, and the exploration of a potential listing on a major exchange.

"Financing is obviously a critical component in driving the growth of any young company," stated Mr. Weiner. "We are now properly capitalized with over $2 million in cash on hand and a positive net worth. We were very pleased with the fixed price financing we concluded with SBI. By having a fixed price financing, the company can elect to draw down as much capital as needed, without the vagaries or potential toxicity of an equity credit line and it is, therefore, a much more attractive and stable form of financing."

Mr. Weiner also noted, "The financing moves us closer toward meeting the net worth and working capital requirements for listing on a major exchange. The facility gives us access to the capital needed to ensure we meet our development objectives in several critical markets and expand our marketing efforts in segments, including pacemakers, defibrillators, neurostimulators, prosthetics, catheters, guidewires, stents, shunts, and our development of MRI contrast agents. We will be able to take advantage of additional nanotechnology that meets our strategic objectives. Our involvement with biomedical device companies gives us unique market perspective for identifying ripe opportunities."

"Additionally, we plan to expand our patent portfolio and perfect international patent filings in critical markets," Mr. Weiner continued.