Exhibit 99.1


CONTACT:      D.Scott Buchanan
              Aron Stern
              Biomagnetic Technologies Inc.
              San Diego CA, USA
              (858) 453-6300

              Antti Ahonen
              Neuromag Oy
              Helsinki, Finland
              358 9 394 4510

BIOMAGNETIC TECHNOLOGIES INC. ANNOUNCES ITS COMBINATION WITH NEUROMAG OY; TO
BE KNOWN AS 4-D NEUROIMAGING

San Diego, California, December 23, 1999 -- Biomagnetic Technologies, Inc
("BTi"), (OCTBB: BMTI) is extremely pleased to announce today its combination
with Neuromag Oy.

This combination of the two world leaders in the field of Magnetic Source
Imaging (MSI) will be known as 4-D NeuroImaging.  The names BTi and Neuromag
are synonymous with the great strides in MSI instrumentation that have
occurred over the last 10 years.  Through collaboration with their extensive
customer bases, the companies have contributed significantly to the recent
emergence of MSI as a powerful clinical tool.  While individually successful,
both companies realized that the full potential of MSI could be achieved more
rapidly by the combination of their extensive expertise in hardware and
software development for both research and clinical applications. By drawing
upon the best elements of the technology and applications experience of each
partner, 4-D NeuroImaging offers an exceptional, and heretofore unavailable,
resource for present and future MSI customers.

4-D NeuroImaging will continue the tradition of service and support that have
been hallmarks of the founding companies.  Both the VectorView and the Magnes
product lines will continue to be produced and fully supported, thereby
providing the broadest set of choices for our present and future customers.
4-D NeuroImaging, with company offices in San Diego, Helsinki, Finland, and
Aachen, Germany, and strong distribution in Japan and the rest of the world,
will provide an extensive global presence.

As was the case of the founding companies, 4-D NeuroImaging is committed to
the promotion of cooperation amongst the members of its far flung and diverse
customer base to develop clinical applications, to expand the frontiers of
brain research, and to make MSI the tool of choice for functional imaging of
the human brain.

The combination of the companies was accomplished when BTi purchased 100% of
the capital stock of Neuromag Oy using debt financing as part of its ongoing
financial strategy.

"The formation of 4-D NeuroImaging will significantly enhance the combined
value of both companies, and provide the necessary critical mass in
technology, applications, distribution and customer base to accelerate the
clinical acceptance of MSI as a tool for diagnosis and treatment of
neurological and neuropsychiatric disease," commented D. Scott Buchanan,
President and CEO of BTi.

"I am very pleased to see these two principals in the field of MSI come
together in a manner that will enhance each company's capabilities.
Nueromag's success in the Asian and Research market combined with BTi's
success in the Clinical market, will allow 4-D NeuroImaging to effectively
serve all market segments worldwide,"  said Dr. Enrique Maso, Chairman of
BTi, now 4-D NeuroImaging.

Antti Ahonen, General Manager of Neuromag commented that "The time is right to
bring together these two pioneers of biomagnetism.  4-D NeuroImaging will
allow both companies to continue to exercise their strengths and to combine
them to accelerate the commercial and clinical acceptance of MSI."

The new company starts with a backlog of six systems and is well positioned
to capture a growing market in MSI from a position of strength.

4-D NeuroImaging, headquartered in San Diego, CA, is dedicated to the
development of Magnetic Source Imaging systems that measure magnetic fields
in the human body and assist in the diagnosis of a potentially broad range of
medical disorders.  Its main products, the Magnes and VectorView systems,
provide the most complete line of equipment for examination of brain
function.  More than 200 insurance companies and healthcare providers have
approved reimbursement for certain MSI procedures performed with these
systems.

This press release may contain forward-looking statements that involve risks
and uncertainties.  The Company's actual results could differ materially
from those discussed here.  For a complete and detailed description of these
risks and uncertainties and these transactions, please refer to the Company's
public filings with the U.S. Securities and Exchange Commission.  The company
is not obligated to publicly update or revise these forward-looking
statements.