AMDL, developer and marketer of test for the early detection of cancer and other serious diseases, announced in late November that it has entered into a letter of intent with Jade Capital Group, Ltd., a Hong Kong company, to acquire two People's Republic of China based pharmaceutical companies for up to 13,215,000 shares of AMDL common stock. 

The two pharmaceutical firms manufacture a number of products, including injectables and tablets. Revenues from the two firms to be acquired are expected to be an aggregate of (U.S.) $6 million for the 12 months ending December 31, 2005.

"We are very excited with the opportunities this transaction offers to both our company and our shareholders," said Gary Dreher President and CEO of AMDL. "This acquisition is anticipated to create a lower risk, broader operating business that takes advantage of China's growing pharmaceutical industry."

Jade's business activities in China provide access to the fastest growing pharmaceutical market in the world and an ideal platform to introduce our DR-70(R) cancer test kit, Mr. Dreher said. Jade currently has various therapeutic products under development including a liver cancer treatment technology in phase 3 development. This new product is anticipated to be added to AMDL's CIT (Combination Immune Therapy) technology in order to create a broader, cancer focused, product line. These technologies are synergistic to the main focus of AMDL, which remains the monitoring and treatment of cancer.

Frank Zhen, Executive Director of Jade Capital Group, said that, "We share AMDL's excitement and look to a strong future together. The transaction will provide a unique opportunity to introduce our products to the U.S. and world markets and to exploit AMDL's proprietary technology in China."

AMDL, Inc. (Amex: ADL), headquartered in Tustin, California, is a theranostics company, involved in the detection and treatment of the same disease, cancer.